Global auto makers pushed by unclear policies

Global auto makers pushed by unclear policies  / Malaysian Car Industry

While sales of motor vehicles in Malaysia remained strong in 2002, foreign auto makers expressed their concern and lack of confidence of long term growth, saying they feared that protectionist policies would come online to protect the local auto industry and stunt regional growth. The first two months of 2002 saw a 21 percent increase of motor vehicle sales over the corresponding period last year. The Malaysian Automotive Association (MAA) predicted the trend to continue with yearly sales to exceed the 400,000 unit mark. Production of passenger and commercial vehicles for the first two months of 2002 shot up by 12 and 27 percent respectively for both the national and non-national car makers. However, there was a drop of 6 percent for the 4-wheel drive sector.

In the light of taxes changes brought by AFTA, the MAA submitted a recommendation to the Ministry of International Trade and Industry (MITI), which it hoped would give some form of direction to the Malaysian automotive industry. The MAA basically requested to be given a clear cut policy on how the automotive industry would be in the future, making it easier for the industry players to plan ahead. In the report to MITI, the MAA stated that the current automotive policy was lacking and unclear, resulting in a loss of confidence by world automotive manufacturers to invest in Malaysia. Malaysia was also being left out by global automotive manufacturers in their regional plans for Asean and Asia, losing out as a manufacturing base for selected components and vehicle models. The report also underlined the belief by the automotive manufacturers that Malaysia might adopt an isolationist policy to protect the local automotive industry against foreign competition. Also containing in the MAA report were recommendations for the removal of Malaysia’s local content policy, and a request to clarify the duty structure and definition of vehicles transporting 10 or more passengers including vans and station wagons.  

SALES FOR JAN-FEB 2002 COMPARED TO

CORRESPONDING PERIOD IN 2001

Model                            2002                                     2001                            Percentage

Proton                          35,487                                    30,520                         16

Perodua                       16,791                                     13,301                         26

Non-national                 5,506                                     3,923                           40

(commercial)

Inokom                          933                                        3                                  31

Perodua                         330                                        202                              63

Hicom MTB                  420                                        451                              -7

Proton                            218                                       0                                  0

Non-national                5,446                                      4,130                           32

(4-wheel drive)

Perodua                              1,809                                1,869                           -3

Non-national                      3,061                                2,776                           10

Total Industry Volume for Jan-Feb 2002 period.

National                                                      : 55,055 units

Non-national                                               : 14,013 units

TOTAL                                                     : 69,068 units