The automotive sector was among the biggest winner of the government stimulus plans, turning 2020 into a banner year for the segment, despite the unprecedented economic challenges following the Covid-19 pandemic.
But the economic stimulus measures implemented by the new Perikatan Nasional-led government, apparently fuelled the automotive recovery. Bank Negara Malaysia , meanwhile, cut its overnight policy rate by 50 basis points to 2.0 percent a month earlier and another 25 bps to a record low of 1.75 percent .Sales of vehicles in June 2020 was higher at 44,695 units from 42,586 units in June 2019.
Without such risk, Malaysia’s TIV grew 1.0 percent to 604,287 units in 2019 from 598,589 units in 2018. The FMCCAM, which manages 4,325 dealers under its umbrella, said used vehicles have become the industry’s hottest commodity as consumers prefer to drive their own car during the pandemic and buy used to save money in the uncertain economic climate.
As 2020 draws to a close, domestic car manufacturers continue their growth trajectory towards a strong year-end finish.