Vehicle sales to grow by 3.15%, says Frost & Sullivan

By THE STAR | 7 January 2015

KUALA LUMPUR: Frost & Sullivan expects Malaysian 2015 vehicle sale to grow by 3.15% to 685,950 units year-on-year on due to new model launches with competitive pricing and stable economic condition.

"The high back orders in 2014 from Perodua Axia and Proton Iriz are likely to support vehicle sales growth this year," said Frost & Sullivan senior partner Kawan Mukhtyar to reporters at a media briefing today.

He expects the passenger vehicles segment to grow 3.2% to 608,000 units year-on-year, while the commercial vehicles segment to grow about 2.6% to 78,000 units.

For 2014, Mukhtyar estimates vehicle sale to end at 665,000 units, a mere 1.4% year-on-year growth driven by the launch of several new models such as Honda City, Honda Jazz, Perodua Axia and Proton Iriz.

While he is targeting that the national carmakers would continue to be market leaders in the passenger vehicles market, Proton and Perodua are expected to see decline in their market share to 20% and 33% respectively.

In 2013, Proton has a market share of 24% and Perodua has 34% in the passenger vehicles market.

However, Mukhtyar expects that the commercial vehicles market to decline 3.9% to 76,100 units in 2014 due to lack of major construction projects.