Kuala Lumpur, Malaysia
Government support for industrial development is expected to boost demand for light commercial vehicles in the country especially from the small and medium industry in the next few years.
"Light commercial vehicles currently command half of the Malaysian commercial vehicles market. It continues to support a wide range of applications across industries, especially small and medium enterprises," notes Mr. V. Bhanu Prakash, Industry Manager at Frost & Sullivan Automotive & Transportation Practice, Asia Pacific.
The 4.5 to 5 ton light commercial vehicles are likely to be the most popular products in the market, accounting for 96.0 percent of total sales in the light commercial vehicle market segment.
The commercial vehicle market in Malaysia can be segmented into pick up trucks, light, medium, heavy commercial vehicles and buses.
New analysis from Frost & Sullivan (www.transportation.frost.com), Malaysian Commercial Vehicles Markets, reveals that the market accrued 50,098 units in 2005 and is likely to increase to 69,302 units in 2012 at a compound annual growth rate (CAGR) of 4.7 percent.
Mr. Prakash says that the Malaysian Government's move to provide an efficient public transportation to its citizens is likely to drive demand for the bus segment.
"Besides, more people are now opting for public transportation over personal means of transport due to the hike in petrol prices, fueling demand for buses," he adds.
Mr. Prakash also says that demand for tour, express, and stage buses are increasing as the Malaysian Government focuses on developing the tourism industry. Fleet operators are likely to add other variants of buses to their fleets to meet growing demand.
He also says that commercial vehicles have also become more affordable due to tariff and tax incentives, leading to additional sales.
"The demand for fuel-efficient variants of heavy and medium commercial vehicles is also on the rise," says Mr. Prakash, adding that the heavy commercial vehicle market is likely to grow and become the core focus for commercial vehicle manufacturers.
Despite the potential growth of the Malaysian commercial vehicle market, manufacturers need to be aware of the various challenges in the market.
Commercial vehicle imports from countries such as Japan are gaining market share at the expense of domestic vehicles as they are sold at a much lower price.
Mr. Prakash says that Japanese manufacturers command a high market share in the light commercial vehicle market segment, while European manufacturers dominate the heavy commercial vehicle segment.
He adds that some small companies import second-hand vehicles, which are refurbished and sold at much lower costs under original brand names.
"This is eroding the market share of domestic commercial vehicle manufacturers, while adversely affect the brand image of vehicle manufacturers," Mr. Prakash says.
Hence, commercial vehicle manufacturers are now focusing on technology to enhance vehicle features as well as brand building and network expansion services. Vehicle safety systems such as anti-lock braking systems (ABS) are gaining importance and have wide usage in the commercial vehicle market. Manufacturers are competing on fuel efficiency, driver safety, and comfort provided by the vehicle.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Malaysian Commercial Vehicle Markets, send an e-mail to Alice Chia, Corporate Communications at alice.chia@frost.com with the following information: your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
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Malaysian Commercial Vehicle Markets
P002-18
Alice Chia, Corporate Communications - Asia Pacific, Frost & Sullivan, + 603.6204.5899 alice.chia@frost.com
Melina Trevino, Corporate Communications - North America, Frost & Sullivan, + 1.210.247.2440 melina.trevino@frost.com
Source: Frost & Sullivan (Business Wire India)