Business

Friday July 31, 2009

Tan Chong car sales up in H1 despite slowdown


PETALING JAYA: Edaran Tan Chong Motor Sdn Bhd (ETCM) sold more cars in the first half of 2009 from a year ago despite the current global economic downturn and contraction in the local total industry volume (TIV).

Executive director Datuk Dr Ang Bon Beng said ETCM’s sales rose 3% to 14,082 units in the six months ended June from 13,701 units previously due to improved customer sentiment and a better economic outlook.

“We are one of the few motor players to record better sales despite the drop in TIV,” he told reporters after the launch of the Nissan 370Z sports car and Nissan Murano sport utility vehicle (SUV) on Wednesday.

“Our target of one percentage point increase in market share to 6% (of TIV) by year-end is on track,” Ang said, adding that ETCM’s market share had increased to 5.6% in June from 4.9% a year ago.

Datuk Dr Ang Bon Beng with the new Nissan Murano

Its best seller is the Nissan Grand Livina multi-purpose vehicle (MPV), which contributed about 44% to total sales.

Last week, the Malaysian Automotive Association (MAA) announced that total vehicle sales for the first half of the year were 251,092 units, a 10% drop from 277,973 recorded in the previous corresponding period.

MAA also revised upward its industry sales forecast for this year to 500,000 vehicles from 480,000 as it expects economic conditions and customer sentiments to improve.

Ang said: “For the rest of the year, we anticipate a brighter outlook, in line with the MAA’s revised forecast.”

He also said there was “a lot of good news” lately that would help boost customer confidence.

“Banks are still supportive. The Government’s stimulus packages and other recently announced measures have given positive signals to the market,” he added.

Meanwhile, Ang said response had been better than expected for its newly launched Nissan 370Z and Nissan Murano SUV, which have a starting price of RM354,400 and RM318,200 (excluding road tax and insurance) respectively.

He said ETCM had sold three units each of the 370Z and Murano.

“They are targeted at a niche market. It is for customers who can demand and pay for these vehicles even during an economic downturn,” Ang said.


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