KUALA LUMPUR: Honda Malaysia Sdn Bhd saw a decline of 52 per cent in car sales for the year-on-year (YoY) period of May to July 2021, with only certain after-sales services allowed while sales and manufacturing operations were on halt.
Managing director and chief executive officer Madoka Chujo said the Japanese auto marque sold about 5,700 units in this period compared to close to 12,000 units sold in the same period last year when the country was under Conditional Movement Control Order (CMCO) and Recovery Movement Control Order (RMCO).
"The prolonged business closure has also impacted Honda Malaysia's new model production due to no testing conducted in the manufacturing facility.
"The company's supply chain and exportation of parts are also affected," she said in a statement today.
Madoka pointed out that the automotive industry supports a wide network of local components and parts suppliers that comprise a few tiers.
These suppliers might not be able to sustain their operations, which will subsequently affect the overall supply chain.
"The currently extended lockdown and no visibility on business resumption timeframe have impacted planning and an overall investment of the automotive marques.
"Even more worrisome is the domino effect it has had on all the 101 Honda authorised dealers who face financial difficulties and the uncertainty of employment for sales and service advisors as well as other staff at the dealers.
"The sales advisors whose income largely depend on commission earned have been severely impacted," Madoka said further.
Honda Malaysia has closed it's business operations plant in Pegoh, Melaka, sales office and dealer showrooms since June 2021 to comply with the Full Movement Control Order (FMCO) implementation.
Should early resumption of the automotive sector be possible under strict standard operating procedures (SOP) and guidelines set by the government, Honda Malaysia hopes there will be no long-term consequences, such as layoffs, and that it will help mitigate potential supply chain closures.
Honda Malaysia and its associates have registered under the Public-Private Partnership Industrial Covid-19 Immunisation Programme (PIKAS) to expedite the country's vaccination rate.
The company targets to achieve 100 per cent of first dose vaccination for all its associates by mid-August 2021.