Despite Bank Negara Malaysia’s move to tighten the conditions for lending, the Malaysian Automotive Association is maintaining its earlier forecast of 615,000 sales in 2012.
Datuk Aishah Ahmad, MAA’s president, declared that it was too early to revise the forecast, due to the fact that it takes a lot of time for dealers to adapt to the new rules and that following the ruling, some local banks were found to have made the rules a little to harsh and Bank Negara could have has something to do with this.
“I think Bank Negara had met up with the banks and told them to be less stringent. Maybe, when the central bank requested them to look at (borrowers’) net income, they had become more stringent (than what was required). But I think now it has eased a bit and that is helping the industry players,” she told reporters.
All in all, the first quarter sales are expected to be flat or lower since car dealers are just beginning to adapt to these new rules. But March sales are expected to be better and cover the sales drop from January and February, with the market adjusting to the stricter requirements in the higher purchase loan application process.