KUALA LUMPUR – Honda Malaysia’s sales declined 52% year-on-year for the May-July period as its business operations were affected by the Covid-19 lockdown.
In a statement today, managing director and CEO Madoka Chujo said the company sold about 5,700 units in this period compared with 12,000 a year ago, when the country was under the conditional and recovery movement control order.
“With only certain after-sales services allowed, and sales and manufacturing operations halted, it is no surprise that sales plunged. The prolonged business closure has also impacted Honda Malaysia’s new model production due to no testing conducted at our manufacturing facility.
“The company’s supply chain and parts exports are affected, too.”
She said the automotive industry supports a wide network of local suppliers of components and parts, adding that they may be unable to sustain operations, subsequently disrupting the entire supply chain.
The ongoing lockdown and the lack of clarity on the business resumption time frame have impacted planning and overall investment in the sector, she said.
“Even more worrisome is the domino effect it has had on all 101 Honda authorised dealers, who face financial difficulties, and the uncertainty of employment for sales and services advisers, as well as other staff.
“Sales advisers, whose income largely depend on the commission earned, have been severely impacted.”
Chujo added that Honda Malaysia aims to achieve a 100% first-dose vaccination rate among its associates by mid-August under the Public-Private Partnership Industrial Covid-19 Immunisation Programme. – Bernama, August 5, 2021
