THE MALAYSIAN automotive sector saw vehicle sales plunged 96% in June to 1,921 units compared to 47,204 in May 2021, mainly due to halted sales operations in many of the states.
More than a quarter of the 6,000 used and new vehicle distribution centres nationwide are expected to close shop in the next quarter if the full movement restrictions continue. Many small dealers are already facing tight cash flow.
Car dealers have to fork out RM120 million a month in employee salaries, rent and loans, while used and new car dealers and credit companies said overheads cost them RM20,000 a month.
The car companies, especially those dealing in second-hand and reconditioned models, are not only affected by the running costs of their operations, but the depreciation of the value of their vehicles. The older makes, meanwhile, are prone to damage, necessitating repairs.
The Transport Ministry, however, have thrown the used car companies a lifeline by allowing the registration and exchange of ownership to take place online, while Puspakom inspections for approval may be arranged by appointment. – August 18, 2021.
Imported cars arrivals in Malaysia are not picked up by the dealers who lack storage space for the vehicles. Their parking at the port costs the dealers RM30 to RM80 per day. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.The Perodua factory is closed until further notice. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Used care dealers face the additional headache of repairs for their models sitting in storage. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.The Proton factory is closed while production and shipment activities are barred during a full lockdown. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Car keys pile up at a lockdown at the second-hand car dealers'. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Older makes at the second-hand car dealers need more care and maintenance while in protracted storage. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Imported and used car dealer Amran Karim has had to take up a part-time gig as a p-hailing rider to make ends meet, after living through several lockdowns. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Used car dealer Mohd Osman Abd Khalid sells food in his backyard during the lockdown. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Car dealers struggle to pay rent for their premises while shut down. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.Workers at used car dealers prepare the models and showroom for reopening. – The Malaysian Insight pic by Afif Abd Halim, August 18, 2021.
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