Industry Trend Analysis - Positive Economic Outlook To Boost Car Sales - APR 2018
BMI View: Passenger car sales in Malaysia will grow 2.2% in 2018 on the back of the country's strong economic outlook and a strengthening local currency. That said, a rise in interest rates and stringent lending conditions will continue to drag on growth in the new car market.
After flat growth of just 0.02% in 2017, we expect passenger car demand in Malaysia to trend higher in 2018, rising 2.2% and totalling around 526,000 units. This improving market demand will be off the back of a positive growth outlook for the Malaysian economy as well as a strengthening local currency. That said, the higher interest rates and stringent lending conditions that dragged on the new vehicle market's growth in 2017 will continue to limit growth throughout 2018 as well.
Positive Economic Picture Bodes Well For Sales
|Gradual Recovery Ahead|
|Malaysia - Passenger Car Sales, Units|
|f = BMI forecast. Source: MAA, BMI|