Perodua, the second national car maker, has urged local banks to give due consideration to the automotive industry players, by implementing any new guidelines in stages so as to allow a soft

landing for both the players and consumers.

Its managing director, Aminar Rashid Salleh, said the soft landing is to allow for prudent, responsible and transparent retail practices.

He said the financial institutions should also take into consideration the government’s desire to see growth in the industry by increasing competitiveness as well as a better business environment for all.

“We are committed to support the government’s initiatives, particularly in addressing rising household debt, but we would also appreciate it if the government and regulatory bodies would consult the players to better understand the impact to the industry prior to the implementation of any new initiatives or measures,” he said in a statement today.

Aminar Rashid said Perodua is seeking to have more engagements with regulators prior to the implementation of new guidelines that affect the automotive industry, as such discussions will help smoothen the implementation of any new policy.

“The recent meeting with Bank Negara Malaysia and industry players has been beneficial as it addressed serious issues regarding the automotive industry as a whole.

“We hope to have more engagements with the respective stakeholders on this matter to ensure that the problems raised are rectified as soon as possible,” he added.

The new Guidelines on Responsible Financing by Bank Negara, effective Jan 1, 2012, was seen as a major stumbling block to the growth of the Malaysian automotive industry.

 Earlier this month, the Proton Edar Dealers Association Malaysia has called for a review of the new financing guidelines as it has severely damaged sales, with only 30 percent of applicants securing car loans in the first two months of the year.

Additionally, the Malaysia Motor Association reported a 25 percent drop in sales of new motor vehicles, citing the tightening of the hire purchase loan approval as one of the reasons for the decline.

Aminar Rashid also said due in part to the implementation of the new financing guidelines, the inventory of vehicles has risen, and if left unchecked, the players may need a downward revision in their production planning.  

- Bernama