MORE than half of Malaysians surveyed are still concerned about using public transport due to the Covid-19 pandemic.

The findings by automotive web portal WapCar showed that 57.9% of 318 respondents said they will not take public transportation, while 32.7% said they will use public transport despite concerns over the virus.

A total of 55.4% said they are considering buying a car in the next six months.

“It appears that while Malaysians are concerned about their safety, they will continue to take public transport out of prudence or because they have no other alternative,” the survey found.

It also found that those concerned about Covid-19 preferred to drive. Some respondents are also opting to reduce spending and lower their budget for a car.

“The findings reflect the car sales trend as well, as the spike in demand for used cars in Malaysia in June. The Malaysian Automotive Association (MAA) recently reported June 2020 sales volume was 5% higher than June 2019.”

The Federation of Motor and Credit Companies Association of Malaysia found that a 100% year-on-year growth in June’s used car sales. MAA expects the sales volume in July 2020 to be better, and trending towards cheaper and fuel efficient cars, the survey revealed.

It added that the exemption on sales tax until the year-end will help spur demand.

Almost 47% of respondents indicated that they would spend less than RM100,000 for their next car purchase.

“Price and discounts will influence the current car purchase decision, with 83% of respondents noting these as the most important factors during the pandemic.

“The government’s sales-tax exemption measure to boost the automotive industry appears to be a step in the right direction, aligned with the needs of the people.”

WapCar’s data from March 9 to June 30 showed there was an increase in search for practical and well-priced cars, which showed that people have been on the search for better deals.

Nine of the 10 most searched cars, have starting prices below RM100,000. These include models such as Honda City, Nissan Almera, Perodua Bezza, Perodua Axia, Perodua Aruz, Proton X50, Proton X70, Proton Saga, and Toyota Vios.

Specifications and performance (74%) are also critical as with durability and fuel economy (63%),” it said.

A bulk of the respondents (70%) said they are concerned about their economic situation which affected their decision on buying new cars.

Almost 50% of them are extra cautious on their spending and prefer to save for emergencies instead of purchasing big-ticket items, such as cars, in the next six months, it said.

“In the face of stiff competition from cheap used cars, car brands have to up their customer service game in order to entice people to purchase new cars.”

Majority of the respondents were also in favour of the idea of convenience and not being required to be physically present in a car showroom.

In addition to online showrooms (42.1%) and convenient online financial solutions (55%), more than 59% of respondents cited door-to-door test drive and delivery as a service that they are expecting from car brands, it said.

The survey was conducted for over a week in July to understand the concerns of car buyers and how the industry can meet them. – August 10, 2020.