The market share of the two Malaysian automotive brands have reduced from 2013 to 2014, but they will be making a comeback this year, predicts the Malaysia Automotive Institute (MAI).

 

According to MAI chief executive officer M Madani Sahari, there was a total growth of 1.5 percent for the Malaysia total industry volume (TIV) from 2013 to 2014, from 655,793 to 665,675.

 

However, the total market share for both Perodua and Proton had decreased 4.3 percent from 51.1 percent in 2013, to 46.8 percent in 2014.

 

Despite Perodua continuing to lead the market in 2014 with 29.4 percent of market ownership, the number is 0.5 percent lower compared with the 29.9 percent in 2013.

 

Meanwhile, market shares for Proton had dropped 3.8 percent from 21.2 percent in 2013, to 17.4 percent in 2014.

 

This was announced by Madani ( right ) during the ‘Malaysia Automotive Institute Review and Insight 2014/2015' media briefing session today.

 

However, he declined to explain the reasons for the fall and asked the media to direct the question to Proton and Perodua instead.

 

Nevertheless, Madani assured that they will make a comeback as their market share is predicted to improve to 52 percent in 2015, due to several positive factors.

 

Among others, he said that both the national brands will come out with new models at attractive prices and they will enhance the quality and reduce the cost of their services to the customers.

 

The remaining three brands out of the top five in 2014 are all Japanese, namely Toyota (15.3 percent), Honda (11.6 percent) and Nissan (7 percent).

 

While Nissan had suffered a decrease in market share from 8.1 percent in 2013 to 7 percent in 2014, Honda is the biggest gainer with an increased market share of 3.7 percent from 7.9 percent.

 

As pointed out by Madani, the most popular models for Perodua in 2014 are the Axia (29,000 units), Myvi (82,000 units) and Alza (55,000 units).

 

The three best selling models for Proton are the Saga (56,000 units), Persona (21,000 units) and Exora ( right ) (15,000 units).

 

Honda hit the charts with its two popular models – the Jazz (12,000 units) and City (36,000 units) while Toyota’s best selling model is the Vios (42,000 units).

 

Madani said that the growth of TIV from 2013 to 2014 was due to market liberalisation under the National Automotive Policy (NAP) 2014.

 

He said that the there were several factors that attracted the consumer, including new models with better technology, with better fuel efficiency and improved safety, more competitive on-the-road prices and round the year promotions by original equipment manufacturers.

 

Car sales to hit 700,000 in 2015

 

Madani stressed that MAI was confident that the TIV of 2015 would hit 700,000 units as forecasted.

 

“This represent a 5.1 percent growth compared to 2014,” he added.

 

This, he said, was because that major public transport systems, such as the MRT, had yet to be fully in place and with the employment growing at a good rate, people would tend to opt to buy a car for travel and work.

 

He added that if the consumer incentive schemes, such as ‘Cash for Clunkers’, were available, the TIV may increase to more than 750,000 units this year.

 

Madani said that the key initiatives for MAI in 2015 included the development of fundamental technologies, such as plastics, and further strengthening the competitiveness of the Malaysian automotive industry.

 

He added that other initiatives including the development of electric mobility, like the lithium-ion battery for car usage, e-buses as well as electric vehicles (EV).

 

“We are working with a private company to develop something that can be bought by the commoner. If we set EV prices around RM140,000 to RM150,000, nobody will buy.

 

“But if it’s at the price of RM90,000, then everybody will say, ‘I will buy it’,” he said, adding that such EVs should be capable of travelling 300km per charge.