Rising Middle Class To Drive Automotive Demand In Malaysia

KUALA LUMPUR, April 16 (Bernama) -- A global survey by Nielsen shows that seven out of 10 Malaysians intend to acquire a car within the next two years on rising income levels and more households joining the middle class. The Nielsen Global Survey of Automotive Demand found that Malaysian purchase intent is high with the country being ranked among the top 10 globally in respect of intention to acquire a car within the next two years. Despite the overall low ownership level across the Southeast Asian region, Malaysia posted the third highest level of car ownership globally (93 per cent). The country also had the highest incidence of multiple car ownership with 54 per cent of households having more than one. "Historically, automotive demand in Southeast Asia has been relatively low and for many households, owning a car has been financially out of reach. "We have seen those tables turned in a big way in recent years, largely due to rising income levels across the region. "More and more households are joining the middle class and attaining the financial means to make their first car purchase," Managing Director of Nielsen's Automotive Industry Group in Southeast Asia, North Asia and Pacific, Chang Par was quoted as saying in a statement here Wednesday. Based on the survey, 88 per cent of Malaysian car owners intend to upgrade their vehicles when they are financially able to, compared to a global average of 78 per cent. Meanwhile, the survey also stated that three in 10 Malaysian consumers spent more than an hour driving to work, while 23 per cent spend more than an hour taking the train for the same purpose. It said 18 per cent and 13 per cent respectively of Malaysian consumers took over an hour walking and taking a bus ride to work. Reflective of their relatively long commute times, many Southeast Asian owners believe the primary role of the car they drive, is to get them where they need to go. Nielsen's survey also showed that 85 per cent of Malaysians shared this view. --BERNAMA