MAA Revises TIV Expectations For 2021!

The prolonged implementation of the Movement Control Order (PKP) has forced the Malaysian Automotive Association (MAA) to comply in reducing its projected total industry volume (TIV) 2021 by 5.6 per cent to 500,000 units.

Previously, MAA had made a bold forecast that the TIV for 2021 would reach at least 570,000 units. However, looking at the automotive sector which has not yet been allowed to operate fully has caused MAA to have to change the forecast.

Commenting further on the matter, MAA president, Datuk Aishah Ahmad said, the change was made as automotive factories, distribution centers and showrooms were only allowed to operate by the Third Phase of the National Recovery Plan (PPN).

"This is why we do not record the total sales and production of vehicles. We also do not know when the showroom and local vehicle assembly plant will be allowed to operate again.

“In fact, most distributors claim that they are badly affected, especially in terms of cash flow. If this situation continues for a few more months, then they have no choice but to close down operations or lay off workers,” she added.

The president said this at a media briefing while presenting the performance of the automotive sector held online this morning.

Therefore, their party has sent several applications for the government to allow the automotive sector to operate but with stricter standard operating procedures.

Unfortunately, until now, her party has not received any feedback on the matter.

When asked about the TIV of new vehicles registered in the first six months of 2021, she however claimed that the period recorded an increase of 43.6 per cent to 249,129 units compared to 173,545 units recorded in the same period last year.

On the other hand, she admitted that sales of new vehicles in June declined by 96 per cent to 1,921 units compared to 47,204 units recorded in the previous month (May).

The sharp decline was due to the impact of nationwide movement restrictions imposed since June 1.

"Vehicle sales had to be stopped throughout the state from June 1 as the automotive sector is not listed as an essential economic activity," the president said.

In this regard, it is hoped that the automotive sector can resume operations or Malaysia will lose its market globally!