KUALA LUMPUR (March 23): The Malaysian Automotive Association (MAA) is forecasting a 2% increase in car production for 2018.

"Car production could be 2% or higher in 2018," its president Datuk Aishah Ahmad said at a press conference, after its annual general meeting here today.

Aishah explained there was a cut back in car production in 2017, as car manufacturers had excess stock in 2016.

Last year, car production declined about 8% to 499,639 total vehicles, from 545,253 vehicles in 2016.

Meanwhile, MAA still maintained its forecast for total car sales at about 2.3% growth at 590,000 cars for 2018.

Commenting on its outlook on its sales volume for March 2018, Aishah said MAA is expecting to see better sales volume, compared to February.

Aishah explained March was a longer working month and that it is the month where companies having their financial year ending on March 31, 2018 rush deliveries. 

MAA saw total vehicle sales declining 10.92% to 38,416 in February 2018, versus 43,127 in February 2017.

Aishah attributed the lower sales to the shorter working month, due to Chinese New Year festive holiday.