Boston, MA -- (SBWIRE) -- 10/08/2014 -- According to the Malaysian Auto Association (MAA), auto production grew 5.6% in 2013, to 601,407 units. While passenger car production registered healthy growth of 6.7%, to 543,892 units, output in the commercial vehicle (CV) segment contracted 4.1%, to 57,515 units. For 2014, we expect growth in both CV and passenger car production, and forecast overall auto production growth to come in at 4.9%, to 630,590 units.

Auto sales in June 2014 grew 9.2% year-on-year (y-o-y) to 58,561 units, bringing sales for H114 to 333,142 units, an increase of 6.3% y-o-y.

We are maintaining our 2014 passenger car sales growth forecast of 4.0%, to 600,000 units, as high base effects will temper growth in H214.

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Slowdown In Construction To Weigh On CV Segment

The weakness in CV sales has been more pronounced than we envisaged. Sales in the segment declined 3.0% y-o-y over the H114 period, to 36,363 units. While we expect the country's ongoing ETP to continue providing support for CV demand ( see 'EEV Policy And ETP Will Ensure Strong 2014', January 14), one factor that could have led to the underperformance of the segment is cooling demand in the real estate sector.

While a lot of lending has been channelled into the real estate sector in the past few years, the recent macroprudential measures put in place by the government to rein in property speculation appear to be having the desired effect of curbing speculative demand for real estate. This is corroborated by the slowdown in money supply and credit growth in recent months. This has resulted in a slowdown in the construction sector, which has contributed to weaker CV demand.

NAP And EEV

The revised National Automotive Policy (NAP) contains incentives to promote the production of energy-efficient vehicles (EEVs). We believe this segment is poised to increase its popularity in the South East Asia region especially as the governments in various countries choose to lower their fiscal burdens by curbing fuel subsidies, which results in...

The Malaysia Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s Malaysia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Malaysia.

Key Benefits

- Benchmark BMI's independent automotives industry forecasts on Malaysia to test other views - a key input for successful budgetary and planning in the Malaysian automotives market.
- Target business opportunities and risks in the Malaysian automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Malaysia.
- Assess the activities and market position of your competitors, partners and clients via our Competitive Landscape Analysis.

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering production, sales and the introduction of new technology or products.

Global, Regional and Country Industry Overviews

In-depth analysis of the major global and regional developments in the market, which can be linked with the country industry overview, providing cross-country investment, product and financing trends that will affect each market, supported by BMI?s global and regional industry forecasts.

Business Environment Rankings

BMI's proprietary Autos Business Environment Rankings are a unique country-comparative Risk-Reward Rankings index that separately analyses the risks and rewards of operating in each market. It is aimed at investors (including manufacturers, suppliers and dealers) who seek to either identify and compare market opportunities, or evaluate country-specific operational challenges.

The rankings methodology makes sophisticated use of over 40 industries, economic and demographic data points.

BMI Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Total production value (US$bn); total production of units; production by vehicle-type (including cars, commercial vehicles, trucks and buses); total sales value (US$bn); sales by vehicle-type, including passenger cars and commercial vehicles (vans and microbuses, pickups, trucks and buses, 4 wheel drive); total exports by value (US$bn) and by units; total imports by value (US$bn) and by units; contribution to GDP; employment in industry.

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