Published on August 16th, 2021 | by Subhash Nair0
Automotive Industry Reopens After More Than RM14 Billion Of Losses
The Malaysian Automotive Industry reopens at the brink of collapse
We’ve mention time and time again just how hard the automotive industry has been hit by the pandemic and the related economic shutdown. But now we have actual figures shared with us by the Malaysian Automotive Association (MAA).
According to the MAA, the last 2.5 months have been devastating. Sales amounted to just 9007 units for the entire nation over June and July 2021. Those are horrendous numbers. Total Industry volume for the same period was expected to be between 45,000 and 50,000 units. This is less than 20% of what was projected.
On the production side, it’s just as worrying. Total Industry Production for June and July stood at just 3051 units which is less than 10% of the country’s local production capacity of 40,000-50,000 units.
How Long Can The Automotive Industry Stay Closed?
MAA says that these numbers have had wide repercussions on the entire automotive eco-system. Smaller car dealers have been particularly hard hit, with many facing severe cashflow problems and difficulty retaining employees. We saw this sentiment mentioned in earlier posts by UMW Toyota and Honda Malaysia.
Globally, the South East Asian lockdowns have also had a toll. Even Toyota’s global supply chain has been disrupted as a direct result.
The Ministry of International Trade and Industry has allowed for the re-opening of a number of economic activities including sales and production of motor vehicles in states currently under Phase One of the National Recovery Plan starting today, the 16th of August 2021.
Most car company staff have received at least one dose of the COVID-19 vaccine, with a few being fully vaccinated already. Some companies like Edaran Tan Chong Motors, have an in-house vaccination programme as part of PIKAS.
Since the FMCO went into effect, the number of daily COVID cases have only gone up. By the middle of August 2021, Malaysia had a 7-day average of over 20,000 daily cases. The death rate too is at an alltime high, with over 250 Malaysians dying just yesterday from COVID-19 complications.
It’s not all bad news, as we’re also on track to having half the adult population fully vaccinated this month.