KUALA LUMPUR: Automotive players are expected to introduce new and enhanced versions of existing models next year, including energy-efficient vehicles (EEVs) at very competitive prices.
However, uncertainties over the impact of the Goods and Services Tax (GST), rising living costs and bleak global economic outlook may cause consumers to be careful with their spending, and players expect the sector to soften in the first half of next year.
Proton Holdings Bhd chief executive officer (CEO) Datuk Abdul Harith Abdullah said Proton sees a lot of potential in providing models in their respective segments, citing the recently launched Proton Iriz.
However, he said, Proton is also cautious and mindful of the market outlook for 2015 with the impending introduction of the GST.
“Customers are taking a step back to wait and see what holds for them after the GST due to the many announcements on reduction of car prices, which isn’t true,” he told Bernama.
The current weakening of the ringgit against major currencies may not help either, as imports become more expensive resulting in higher car prices, he said, adding the first half of 2015 could be very soft. Next year, besides continuing to focus on its compact Iriz model, the company will be in the midst of developing other models, he said.
“Sales are anticipated to grow as demand for affordable cars increases.
“The Iriz is doing very well currently and the introduction of the Suprima S Standard reflects our commitment in meeting customers’ demand for better value-for-money and affordable cars,” he added.
Second national car maker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) also foresees 2015 as a challenging year, with its president and chief executive officer Datuk Aminar Rashid Salleh expressing hope for a slightly better year than 2014.
“One reason is the momentum from the energy-efficient Axia is still there, and while the Myvi and Alza would also be drivers for 2015, we will ensure many other surprises.
“The overwhelming response to the Axia is due to the model’s launch profile status, which is likely to be extended to next year, but once it reaches stabilisation point, the Myvi and Alza are there to support sales,” he said.
Sales of the Axia, which have hit 62,000 since its launch in August, will help Perodua’s sales to exceed 195,000 units for 2014.
For 2015, Aminar Rashid said the company could focus on after-sales services to bring back some lost customers and increase retention rate. — Bernama