KUALA LUMPUR (July 26): UMW Holdings Bhd is expecting minimal sales for both UMW Toyota Motor (UMWT) and Perodua in July, amid the prolonged lockdown. 

In a statement today, the group said the ongoing Full Movement Control Order 3.0 (FMCO) has adversely impacted the domestic automotive sector, with only 1,921 units sold for the month of June. 

“Of the total, UMW Toyota Motor (UMWT) delivered 85 vehicles, while Perodua sold 1,009 units. 

“The online showrooms are proving to be a viable alternative for customers during the FMCO. The Toyota, Lexus and Perodua online showrooms are gaining traction, as consumers are gradually moving towards e-platforms during the lockdown phase,” it said.  

Meanwhile, UMW Holdings Bhd’s President and Group CEO Datuk Ahmad Fuaad Kenali said to offset the absence of walk-in customers due to closures, both UMWT and Perodua have no alternative but to pivot to online marketing and sales. 

He added that currently, both marques have a healthy level of outstanding bookings that can be fulfilled, once lockdown restrictions are eased. 

“The prolonged lockdown has adversely impacted the entire supply chain in the automotive sector, especially components manufacturing.   

“Consequently, the exports of automotive components have also been affected, disrupting Toyota’s global supply chain. 

“The group remains hopeful that the lockdown restrictions will be eased and conditional upon strict compliance to the Covid-19 Standard Operating Procedures (SOPs),” he said. 

Meanwhile, UMWT also applauded the government’s decision to extend the sales tax exemption to Dec 31, which the group hopes will hasten recovery of the automotive industry.  

Ahmad Fuaad shared that the group remains confident of the growth potential of Malaysia’s automotive industry.  
 
“UMWT recently announced it will be investing RM270 million into local manufacturing of hybrid electric vehicles (HEV), in a move to advance its carbon neutrality initiative, as well as to offer customers a wider range of vehicles, including technically advanced HEV.

“Barring continued lockdown and prolonged disruption in the global semiconductor chips, UMW expects the automotive sales momentum to continue, especially with the extension of the sales tax exemption. 

“We are appreciative of the Government’s various measures to support the automotive sector.  We wish to also express our appreciation to our customers for their continuing support of our products and services, despite the challenges,” he highlighted.  

Shares in UMW ended four sen or 1.36% lower to RM2.91 today, valuing the company at RM3.40 billion. The stock has fallen by 15.41% since the beginning of the year.