South East Asian Automotive News

The Malaysian Motor Traders Association (MMTA) reported that total industry volume sales in February were the lowest since 1989. The sharp fall in sales was attributed to the depressed state of the market and dismal consumer sentiment. Due to the economic slowdown, some assembly plants are now operating on a four-day week while others are planning 6 to 12 weeks shutdowns. (March 16^th 1998)

Perkasa, the Malaysian national truck, is planning to export at least 10% of 1998 production to overseas markets. ACM, Perkasa's local distributor, is focusing its export ambitions on Indonesia, Singapore, Brunei and some African countries. The truck is manufactured by Malaysian Truck and Bus Sdn Bhd, which is a JV between Diversified Resources Bhd, Hicom Holdings Bhd, and Isuzu Motors Ltd. Perkasa claims to be the market leader having captured 45% of the local market. (March 23^rd 1998)

Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Malaysia’s second national car maker, saw its sales fall 27% on a month-on-month basis to 2,450 units in February 1998. Prior to credit tightening measures, Perodua was selling 6,500 units a month. The company is hopeful that it will reach its 1998 target sales volume of 50,000 units but will review this forecast again in May. (March 14^th 1998)

Proton, the Malaysian national car maker, announced plans to begin construction of a US$1.6bn assembly facility in Turkey. The plant will be operated by Jetpa Holdings, the sole distributor of Proton cars in Turkey and will have an initial assembly capacity of 200,000 cars a year. (March 2^nd 1998)

Proton warned that it expects domestic car sales to decrease by 60% for the financial year beginning April 1^st 1998, which may lead to a cut in production. The car maker has already delayed building a US$1.5bn plant and town (dubbed Proton City), halted recruitment, ended overtime, reduced annual bonuses and frozen pay. To offset the decline in domestic sales, the company is focusing on exports and expects these to increase to 52,000 units in 1998 from 30,000 in 1997. (March 19^th 1998)

Recaro, the German-based automotive seat manufacturer, plans to increase total investment in Malaysia from US$1.1m to US$1.6m and to make the country its regional headquarters. Recaro established two Malaysian production lines in July 1997. The company has a JV with Proton and currently supplies seats to most Malaysian car assemblers and manufacturers. (April 1^st 1998)