June 2012 Sales

A total of 56,604 vehicles were sold in June, 2.9 percent less than the previous month. Cumulative sales for the first six months of 2012 stands at 282,060 vehicles, 3.2 percent higher compared to the same period last year. In the months before, cumulative sales have been consistently below that of the corresponding period last year.

However, as reported in our last Quarterly Review issue in June, automotive sales will pick up by the second half of this year, as the lingering effects of last year's Thai flood clears up and the market adjusts to the new financial borrowing guideline from Bank Negara.

In June, Edaran Tan Chong Motor's (ETCM) executive director Datuk Ang Boon Beng told CBT," The stringent loan conditions for hire purchase of vehicles affect mainly the lower income group. Nissan booking and sales are not badly affected attributable to the market positioning of our model line-up."

"However, as financial institutions request for more supporting documents, taking longer loan processing time, and impose additional conditions for loan approvals, the whole vehicle sales process may take longer to complete."

Nissan had a slow period in the first half of this year due to lingering effects of last year's flood in Thailand. ETCM expects the market to pick-up by the second half of this year as vehicle supply is fully restored and the market adjusts itself to the new borrowing guidelines."

The Malaysian Competition Commission MyCC has yet to provide an acceptable answer with regards to its interpretation of the Competition Act 2010. Earlier last week, MyCC's chief executive officer, Shila Dorai Raj told Bernama that sharing of information by the Malaysian Automotive Association (MAA) may facilitate fixing of prices and raise prices of spare parts.

When asked about the recent move by MyCC, Honda Malaysia's chief operating officer En.Rohime Shafie said Honda Malaysia's legal advisers have looked through the Competition Act and says none of the company's current practices, including sharing of sales data to MAA, is against the law.

In a separate interview by Motor Trader Malaysia (MTM), MAA's president Datuk Aishah Ahmad told MTM that MyCC's recent statement were incorrect.

“It was stated by an MyCC official that as a result of such sharing of data, parts prices will go up. I find it hard to understand how parts dealers would use the data and decide that their prices should be raised!” said Datuk Aishah.

“The MAA is an association, not a cartel,” she stressed, “and we have been compiling sales data from our members and making the data available to all members and subscribers. The data is historical in nature, not forecasts, and it allows every company to have a better idea of market trends. Such information will encourage competition, which is what the Competition Act aims to achieve,” she explained.

Clearly there were different interpretations on the law. While luxury makes like BMW Malaysia, Mercedes-Benz Malaysia, Euromobil (Audi) have stopped providing detailed breakdown of their vehicle sales data, citing compliance with European regulations, Europe's largest car maker Volkswagen continues to share its detailed monthly sales data with MAA.

UMW Toyota, the largest non-national car company in Malaysia have since resumed sharing its detailed sales data. Last month, UMW Toyota temporarily suspended sharing its data for reasons explained in the previous Quarterly Review. A source informed CBT that UMW Toyota will continue to support MAA while the organization's works out a solution with MyCC.

Like Honda, the company does not believe sharing of sales data contravenes against the law and will continue to share its information so long as its fellow Japanese brand competitors continue to do so.

For the month of June, Proton Edar, Nasim (Peugeot) and Isuzu Malaysia joined the list of companies who has stopped sharing detailed breakdown of their sales performance with MAA. However in the case of Isuzu Malaysia, it was easy to link its pick-up truck segment total figures with the D-Max as it is the company's sole pick-up model.

Likewise with Proton's MPV sales total with the Exora.

The new generation Toyota Camry shot ahead of the pack, selling five times more than its next nearest competitor Nissan Teana.

Nissan Grand Livina regained its title as Malaysia's best selling non-national MPV, edging ahead of second place Toyota Avanza by 174 units.

VW Polo Sedan is now VW Group Malaysia's best selling model.

Sales of the Hyundai Elantra proved strong, narrowly missing out the C-sedan title by just 70 cars to the significantly cheaper Kia Forte (1.6 automatic starting at RM 78,800).

Toyota Prius c regained its title as Malaysia's best selling hybrid