KUALA LUMPUR: Frost & Sullivan forecasts Malaysia's vehicle sales to reach 601,000 units in 2018 at a growth rate of 2%, on the back of positive economic growth driving consumer confidence throughout the year.
Frost & Sullivan Senior Vice President of Mobility Vivek Vaidya said the strengthening ringgit is likely to reduce the import costs of parts and complete built-up models, helping contribute to price stabilisation in 2018.
He said the launch of the Perodua Myvi in 2017 H2 as well as the launch of key models, including the Toyota CH-R in 2018, will also drive sales in 2018.
However, Vivek said stringent hire purchase approvals, the National Automotive Policy, improvement in public transport as well as the growth of ridesharing will impact the automotive market in Malaysia in the long term, but are unlikely to have any significant impact in 2018.
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