PRESS RELEASE ON 1ST HALF OF 2006 MOTOR VEHICLE

SALES AND PRODUCTION DATA

SELAMAT PAGI, MAA COUNCIL MEMBERS, MEMBERS OF THE PRESS, LADIES AND GENTLEMEN.

THANK YOU FOR YOUR PRESENCE HERE THIS MORNING TO REVIEW THE SALES AND PRODUCTION OF NEW MOTOR VEHICLES IN MALAYSIA FOR THE 1ST HALF OF 2006.

TOTAL INDUSTRY VOLUME

THE TOTAL INDUSTRY VOLUME (TIV) OF MOTOR VEHICLES SOLD IN MALAYSIA IN THE FIRST SIX MONTHS OF THIS YEAR REGISTERED 248,407 UNITS AGAINST 261,111 UNITS REGISTERED IN THE CORRESPONDING PERIOD FOR 2005. THIS IS A DROP OF 5% IN THE TOTAL INDUSTRY VOLUME OVER YEAR-TO-DATE JUNE 2005.

PASSENGER CARS

PASSENGER CARS SALES TOTALED 184,725 UNITS IN THE FIRST SIX MONTHS OF 2006 WHICH REPRESENTED 74% SHARE OF THE TOTAL MOTOR VEHICLE INDUSTRY IN 2006 AS COMPARED TO 76% SHARE OF THE TOTAL MOTOR VEHICLE INDUSTRY IN 2005 AT 199,554 UNITS.

NATIONAL CARS RECORDED SALES OF 144,060 UNITS IN THE FIRST SIX MONTHS OF 2006 TO CAPTURE 78% SHARE OF PASSENGER CARS, COMPARED TO 149,665 UNITS IN 2006 AT 75% SHARE OF PASSENGER CARS.

TOTAL PROTON CAR SALES FROM JANUARY TO JUNE 2006 WAS 60,246 UNITS WITH A SHARE OF 33% OF THE TOTAL PASSENGER CARS, COMPARED TO 75,983 UNITS IN 2005 WITH A SHARE OF 38% OF THE TOTAL PASSENGER CARS INDUSTRY.

TOTAL PERODUA CAR SALES FROM JANUARY TO JUNE 2006 WAS 78,396 UNITS, ACHIEVING 42% SHARE OF THE TOTAL PASSENGER CAR SEGMENT, COMPARED TO 61,152 UNITS IN 2005 WITH 31% SHARE OF THE TOTAL PASSENGER CARS INDUSTRY.

NON-NATIONAL TOTAL SALES RECORDED 40,665 UNITS IN FIRST HALF OF 2006 WITH A SHARE OF 22% OF THE TOTAL PASSENGER CAR SALES AS COMPARED TO 49,889 UNITS IN 2005 WITH A 25% SHARE OF THE TOTAL CAR INDUSTRY.

COMMERCIAL VEHICLES

A TOTAL OF 45,464 UNITS OF COMMERCIAL VEHICLES WERE SOLD IN MALAYSIA IN THE FIRST SIX MONTHS OF THIS YEAR, WHICH REPRESENTED 18% SHARE OF THE TOTAL MOTOR VEHICLE INDUSTRY AS COMPARED TO 17% SHARE WITH 43,657 UNITS IN 2006. HOWEVER A GROWTH IS STILL EXPECTED TO BE IN THE COMMERCIAL VEHICLES SECTOR IN 2006.

SALES OF NATIONAL COMMERCIAL VEHICLES (PERODUA RUSA/HICOM PERKASA/PROTON JUARA/INOKOM PERMAS/NAZA RIA) REACHED 12,143 UNITS FROM JANUARY TO JUNE 2006 REGISTERING A MARKET SHARE OF 27% OF THE TOTAL COMMERCIAL VEHICLE INDUSTRY, COMPARED TO 11,113 UNITS WITH A SHARE OF 25% OF THE TOTAL COMMERCIAL VEHICLE INDUSTRY.

SALES OF NON-NATIONAL COMMERCIAL VEHICLES IN THE FIRST SIX MONTHS OF 2006 WAS 33,321 UNITS ACHIEVING 73% MARKET SHARE OF THE TOTAL COMMERCIAL VEHICLE INDUSTRY, COMPARED TO 32,544 UNITS AND ACHIEVING 75% MARKET SHARE OF THE TOTAL COMMERCIAL VEHICLES SOLD LAST YEAR.

4X4 VEHICLES

SALES OF NEW 4X4 VEHICLES REGISTERED 18,218 UNITS IN THE FIRST SIX MONTHS OF THIS YEAR WITH A 7% SHARE OF THE TOTAL MOTOR VEHICLE MARKET AS COMPARED TO A SIMILAR 2005 MARKET SHARE OF 7% WITH 17,900 UNITS SOLD.

NATIONAL 4X4

NATIONAL 4X4 VEHICLE (PERODUA KEMBARA & NAZA SORENTO) SALES IN THE FIRST SIX MONTHS OF 2006, REGISTERED 2,377 UNITS OR 13% MARKET SHARE OF THE 4X4 SEGMENT, COMPARED TO 2,430 UNITS OR 14% MARKET SHARE IN THE SAME CORRESPONDING PERIOD LAST YEAR.

NON-NATIONAL 4X4

SALES OF NON-NATIONAL 4X4 VEHICLES IN FIRST HALF OF 2006 REGISTERED 15,841 UNITS WITH A MARKET SHARE OF 87% OF THE 4X4 SEGMENT, COMPARED TO 15,470 UNITS WITH A MARKET SHARE OF 86% OF THE 4X4 SEGMENT.

TOTAL PRODUCTION VOLUME

OVERALL PRODUCTION FOR NATIONAL AND NON NATIONAL MAKES IN THE FIRST HALF OF 2006 REGISTERED A GROWTH OF 2% TO REACH A TOTAL OF 278,646 UNITS, COMPARED TO 273,909 UNITS IN THE SAME PERIOD LAST YEAR.

PRODUCTION OF NATIONAL MAKES REGISTERED NO GROWTH AT 189,432 UNITS WHILE NON-NATIONAL MAKES REGISTERED A GROWTH OF 7% TO REACH 89,214 UNITS IN THE FIRST HALF OF THIS YEAR.

OUTLOOK FOR 2ND HALF OF 2006

WE HAVE TAKEN THE FOLLOWING ENVIRONMENTAL FACTORS INTO ACCOUNT IN OUR FORECAST FOR THE MARKET IN 2006: -

(1)  RISING INTEREST RATES, MORE STRINGENT APPROVALS ON HIRE PURCHASE LOANS AND SHORTER REPAYMENT PERIOD.

(2)  RISING OIL PRICES.

(3)  EXTREMELY WEAK USED CAR PRICES/LOW TRADE-IN VALUE OF USED CARS

(4)  HIGHER INFLATION ESTIMATED AT 4%.

(5)  MODEST GDP GROWTH FORECAST OF 5.5% IN 2006.

(6)  MORE CAUTIOUS CONSUMERS’ SENTIMENTS.

OUR REVISED FORECAST FOR THE YEAR 2006 IS: -

FORECAST
2006 / ACTUAL
2005 / %
GROWTH
PASSENGER CARS / 368,000 / 400,835 / -8%
COMMERCIAL VEHICLES / 114,000 / 112,531 / 1%
4 X 4 / 38,000 / 37,676 / 1%
TOTAL INDUSTRY VOLUME / 520,000 / 551,042 / -6%

I WOULD NOW LIKE TO INVITE QUESTIONS FROM THE MEMBERS OF THE PRESS.

______

DATUK AISHAH AHMAD

PRESIDENT

MALAYSIAN AUTOMOTIVE ASSOCIATION

MAA PRESS CONFERENCE

27 JULY 2006

FP/jo

4

Error! Main Document Only.