PETALING JAYA (Jan 23): Malaysia's automotive sector's total industry volume (TIV) fell 0.6% to 576,635 vehicles in 2017 versus 580,085 a year earlier as inflationary pressure affected consumer spending, the Malaysian Automotive Association (MAA) said today.

TIV contracted for the second consecutive year in 2017, MAA president Datuk Aishah Ahmad said during a media briefing today. She said MAA's 2017 TIV target was at 590,000 units.  

“Despite our country’s economic recovery and the aggressive promotional campaigns undertaken by MAA members, sales remained essentially flat in 2017.

“This can be attributed to the inflationary pressures affecting consumers’ disposable income, which consequently resulted in cautious consumer spending,” Aishah said.

Looking ahead, Aishah said MAA is keeping its TIV forecast under the 600,000 vehicle level, taking into account economic and environmental factors which are expected to affect the cost of living and doing business.

She said MAA has set its 2018 TIV target at 590,000 units.