Friday 29 Mar 2024
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KUALA LUMPUR (Aug 5): Honda Malaysia saw a decline of 52% year-on-year in car sales for the period of May to July 2021, where it sold about 5,700 units during this period compared to close to 12,000 units sold in the same period last year. 

In the statement today, the automotive company noted that the company has closed its business operations comprising Honda Malaysia’s plant in Pegoh, Melaka, sales office and dealer showrooms since June 2021 to comply with the implementation of the Full Movement Control Order (FMCO) by the government due to the drastic rise in Covid-19 cases.

During this period, after-sales services are allowed to operate at dealerships nationwide with minimal manpower and only selected after-sales services are available by appointment, it added.

"With only certain after-sales services allowed and sales and manufacturing operations on halt, it is no surprise that sales have plunged," Honda Malaysia managing director and chief executive officer Madoka Chujo said in a statement today. 

"The prolonged business closure has also impacted Honda Malaysia’s new model production due to no testing conducted in the manufacturing facility. Furthermore, the company’s supply chain and exportation of parts are also affected. 

"The current extended lockdown and no visibility on business resumption timeframe have impacted planning and overall investment of the automotive marques," she added. 

Besides local components and parts suppliers, Chujo also highlighted the domino effect the extended lockdown had on all 101 Honda authorised dealers which face financial difficulties and the uncertainty of employment for sales and service advisors as well as other staff at the dealers. 

Specifically, she pointed out that sales advisors, whose income largely depend on commission earned, have been severely impacted.

She said Honda Malaysia is trying to do its best to assist them during these difficult times, and one of the efforts is by registering Honda associates under the Public-Private Partnership Industrial Covid-19 Immunisation Programme (PIKAS) to expedite the country’s rate of vaccination. 

“The company targets to achieve 100% of first dose vaccination for all its associates by mid-August 2021,” Chujo added. 

Also in the statement, the auto company noted: “Honda Malaysia hopes that should the early resumption of the automotive sector be possible under strict SOPs and guidelines set by the government, there will be no long-term impact such as retrenchment of employees and can help to mitigate potential business closure among the supply chain.” 

Edited ByJoyce Goh
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