Due to ongoing delays, car prices will rise – MAA

According to the Malaysian Automotive Association, if the shortage of microchips and components continues, the production of new cars will be further delayed (MAA).

Its president, Datuk Aishah Ahmad, stated that the Ukraine-Russia conflict has also impacted the supply chain.

“Chips and components come from where the cars are being made, so if there is a delay in manufacturing, there will be a delay with delivery.

According to Aishah, the shortage is also due to a lack of workers in the manufacturing sector.

“Industry players are also facing logistics delays. This affects costs, which is why in the long run, it is inevitable that car prices will go up,” she added.

MAA reported a drop in new vehicle sales from 73,222 in March to 56,213 in April, owing to microchip and component shortages, as well as shipment delays. This figure also represents a 3.6 percent decrease from April 2021.

Aishah also said, a request has been made to the Finance Ministry to extend the sales tax exemption.

Roslan Abdullah, Proton's deputy chief executive officer, stated that production is gradually returning to normal.

“There is still a shortage of parts, especially chips, in the manufacturing sector, but supplies are steadily increasing so a corresponding reduction in waiting times is also expected.

“The average waiting time for Proton models now is between two and four months depending on the variants. For the X50, the waiting period is about six months,” he added.

Roslan said Proton receives about 25,000 bookings each month, and its most popular model is the Saga followed by the X50 and X70.

“Orders are still being placed for Proton models at a healthy level. Our current average monthly bookings are nearly 25,000 units and our recent announcement regarding delivery dates has had no adverse effect,” he said.

Mazda and Honda seem to be affected by this situation, as a Mazda showroom in Taman Tun Dr Ismail in Kuala Lumpur was discovered to be empty due to a lack of new car stock.

Honda stated on its website that there will be a delay in parts and distributions for new car production due to a global shortage of semiconductors and the Covid-19 pandemic.

“With this reduction in production output and high market demand for our products, customers who have already placed a booking with our authorised dealers may experience a delay in new car delivery depending on models or variants,” read the statement