Frost & Sullivan expects Malaysia's TIV to increase to 612,000 this year

KUALA LUMPUR, Jan 5 (Bernama) -- Malaysia's total industry volume (TIV) is expected to increase by 1.2% to 612,000 units this year from an estimated 605,000 units last year despite uncertain global economic outlook, limited new mass market models and concerns on loan approval.

Frost & Sullivan partner & head of the automotive & transportation practice, Asia-Pacific, Kavan Mukhtyar, said TIV in 2012 would be driven by the C-segment (mid-sized sedans) and D-segment (premium and large sedans) while hybrid would continue on a high-growth path amid the extended duty exemption.

"The sales of hybrid vehicles will increase to 60.9% this year as the price gap between the car and petrol vehicles is narrowing," he told a media briefing on Malaysia's 2012 car industry here today.

Kavan said the B-segment (small and compact cars) will grow by 23% year-on-year to 35,000 units following the launch of new key models such as Toyota Camry, Kia Optima, Volvo V60 and BMW M5.

He said the growth of the B- and A-segment (sub-compact) was expected to be less aggressive this year due to stringent loans and credit controls, which would affect the purchase of entry-level vehicles.

"The sales in B-segment will experience a slight growth of 2.2% year-on-year to 98,800 units fuelled by the Perodua Myvi, Suzuki, and Ford Fiesta.

"The A-segment will continue to shrink this year as there are only limited models offered and the increasing trend of first-time buyers opting straight for B- and C-segment models," he said.

Kavan said sales in the C-segment were expected to increase by 3.8% year-on-year to 238,300 units in 2012 with the new launches by Proton, Hyundai and Honda.

On multi-purpose vehicles, Kavan said, demand would slip to 10.1% to 83,100 units, while sports utility vehicles were likely to grow 11% to 26,900 units.

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