Copyright FOURIN, Inc. 2024
Malaysia’s Commercial Vehicle Sales Decline Double Digits Due to Restrained Public Investment
Sales volume of medium and heavy commercial vehicles in Malaysia (total of trucks, tractor trucks and buses) decreased 12.7% year-on-year in 2019 to 15,000 units. Declining sales are attributed to restrained public investment due to lack of government revenue, export slowdown triggered by the US-China trade friction and wait-and-see attitude of consumers toward replacement purchase. Looking at the top two players in the Malaysian market, Hino declined 5% to 5,520 units and Isuzu fell 15.4% to 5,109 units. Since Hino’s rate of decline was small, it was able to overtake Isuzu and capture top position for the first time in five years.
Looking at some of the business developments in Malaysia’s commercial vehicle sector, Hino announced in June 2019 that it will increase the investment ratio of its Malaysian subsidiaries from 58% to 80%, clearly indicating that the automaker intends to expand involvement in Malaysia. In July 2019, Hino launched the 700 Series heavy trucks with AMT in an effort to enhance product appeal. In 2020, Hino plans to introduce its telematics service Hino Connect in Malaysia.
Isuzu launched the AMT-equipped Elf Smoother in Malaysia in June 2019. Meanwhile, UD Trucks released its third model the Kuzer in 2019 after launching the Quester and Croner models. The Kuzer is assembled in Malaysia from CKD kits.
Looking at the bus market, both public and private entities have begun to promote the introduction of BEV buses. In October 2019, the government decided to allocate 500 million MYR in the 2020 budget to purchase 500 BEV buses. In September 2019, GETS Global, a local highway bus service provider, established a joint venture with KPIT Technologies of India, and announced plans to produce 50 BEV buses starting from March 2020. In November 2019, Malaysia Automotive, Robotics & IoT Institute (MARii) announced that it will collaborate with Korean BEV bus maker Edison Motors and an unnamed Malaysian company to establish Malaysia’s first BEV bus assembly plant.
Malaysia: Recent Developments of M&HCV Manufacturers
|Increasing stake in local subsidiary
|・In June 2019, Hino announced to increase its stake in its local production subsidiary Hino Motors Manufacturing (Malaysia) (HMMMY) and sales subsidiary Hino Motors Sales (Malaysia) (HMSM). – Before the increase, Hino owned 58% and Hino’s local partner MBM Resources held 42% of each local subsidiary. After the increase, Hino’s controlling share increased in both HMSM and HMMMY from 58% to 80%.
|・In July 2019, Hino launched the 700 Series heavy trucks with AMT. – AMT is available in three variations of the 700 Series; 4x2 (SH1E), 6x2 (SR1E) and 6x4 (SS1E). All three models combine a 12.9-liter Euro 3 common-rail turbocharged engine with a 16-speed AMT (ZF16). The models are imported from Japan.
|Sales and aftersales service network
|・In September 2019, Hino opened a 3S store in Kawasan Perindustrian Chendering in Terengganu state. The shop was upgraded to 2S to 3S. ・October 2019, Hino opened a 3S store in Klang in Selangor state. The shop was upgraded to 1S to 3S. – With the launch of the new 3S shop, the number of 3S shops of Hino increased to 37 in Malaysia.
|・In 2020, Hino plans to introduce its telematics service Hino Connect in Malaysia.
|(For reference) Target for 2020
|・In February 2020, the sales target for 2020 was announced to be 5,700 units, up 3% from the previous year. However, it is expected to be revised downward due to the spread of the new coronavirus.
|・In June 2019, Isuzu introduced improved variations of the Elf light truck and the Forward medium truck. – Isuzu launched the AMT-equipped Elf Smoother’s NLR130 and NPR150 versions. The six-speed AMT is combined with a Euro 3-compliant engine. Delivery to customers began in September 2019. – Isuzu increased the GVW of the Forward’s FVR34 version from 18t to 19t. The maximum axle load was also increased to 7,500kg to increase loading capacity. Full air brakes and ABS were introduced as safety features. Isuzu also improved the 6HK1-TC engine of the Forward’s FVR300 version, raising maximum output to 300ps and maximum torque to 986Nm.
|(For reference) Target for 2020
|・In January 2020, the sales target for 2020 (commercial vehicles including pickup trucks) was announced to be 10,000 units, up 11% from the previous year. However, it is expected to be revised downward due to the spread of the new coronavirus.
|Adding vehicle with new specifications
|・In November 2019, Mitsubishi Fuso launched the FJ1828R medium truck. – The model is manufactured by Daimler India Commercial Vehicles (DICV). The GVW 19t truck combines a 6.4L 6S20 inline six-cylinder engine with a nine-speed MT. It has a maximum output of 280PS (205kW) and a maximum torque of 1,100Nm. The model features daytime running lights and ABS as safety equipment.
|・In June 2019, UD Trucks launched an improved model of the Quester heavy truck. – The product was improved for the first time since its launch in 2016. The new model features an electronically-controlled 12-speed AMT (ESCOT) and the latest telematics service. Fuel efficiency has improved by 10% compared to the previous model due to weight reduction of the vehicle body. ・In 2019, UD Trucks launched the Kuzer light truck in Malaysia. Delivery to customers began in November 2019. – The model introduced in Malaysia is a GVW 10.4t 4x2 rigid truck. It is assembled in Malaysia from CKD kits.