Malaysian Car Industry Volume To Hit All-Time High In 2011

The Malaysian car industry could reach an all-time high total industry volume (TIV) of 623,000 vehicle units in 2011, according to Frost & Sullivan, representing moderate growth of 4.1 percent compared with 2010's TIV on the back of an encouraging economic outlook and the launch of at least 16 all-new/facelift models this year.

Malaysian Automotive Association (MAA) has yet to announce the exact TIV for 2010, but Frost & Sullivan believes the figure could hit an all-time high of 598,200 units, an impressive 11.4 percent growth over 2009's figure. However, Frost & Sullivan does not believe that the local car market will encounter saturation upon breaching the 600,000-unit mark, thanks to Malaysia's large proportion of young population, 40 percent of which is made up of Malaysians younger than 22 years old.

The C-segment, which accounts for 37.6 percent of TIV, is expected to increase 6.9 percent to 234,183 units. The B-segment is projected to grow more at 14 percent to 91,044 units. With no known model launches planned for 2011, the MPV segment is expected to contract by 5.5 percent, after the explosive growth experienced over the last two years with the entry of the Proton Exora and Perodua Alza. The hybrid segment, dominated by Toyota Prius and Honda Insight, is yet another to watch with the substantial lowering of prices due to the full import/excise duty exemption on hybrid cars.