Fewer people buying new cars after Aidilfitri as global uncertainty dents confidence, says industry group

CYBERJAYA, April 13 — The ongoing conflict in West Asia is expected to weigh on Malaysia’s automotive industry as demand for new vehicles shows a slight dip, according to industry players.

Malaysian Malay Vehicle Importers and Traders Association (Pekema) president Datuk Mohamed Nazari Noordin said the softer demand trend was first observed after the Hari Raya Aidilfitri period and has been influenced by global geopolitical uncertainty, Harian Metro reported today.

“There is a slight drop in demand for new cars, especially after Hari Raya, and the West Asia conflict has also affected buyer confidence,” he said.

“Most people are taking a wait-and-see approach and are being cautious in making purchases,” he was quoted telling reporters at Wisma Yayasan Pekema.

Nazari said consumers are now prioritising essential spending over big-ticket commitments such as vehicle or property purchases.

However, he said vehicle prices remain stable for now as most imported vehicles handled by Pekema come from Japan, with currency exchange rates still relatively favourable against the ringgit.

He said the main challenge currently facing the industry lies in logistics and supply chain disruptions, including congestion at local ports.

“Recently, about 1,500 vehicles had to be unloaded at ports in the Philippines because they could not be processed at Port Klang due to congestion,” he was quoted as saying.

Nazari warned that if the West Asia conflict continues, shipping costs could rise and eventually place upward pressure on vehicle prices.

On market outlook, he said Pekema does not expect a sharp decline in sales, but anticipates a flat performance compared to last year, with a slight dip possible if global conditions remain unstable.

“Sales performance for Dongfeng electric vehicles last year was encouraging, with about 300 units sold, but current trends show a wait-and-see approach among buyers,” he was quoted as saying.