Naza urges govt to allow resumption of auto industry – paultan.org

Naza urges govt to allow resumption of auto industry – paultan.org

08/13/2021

Naza Automotive Group is urging the government to allow the automotive sector to resume operations with immediate effect, two and a half months after the full movement control order (FMCO) kicked into action. In a statement, it said the entire supply chain in the sector has been seriously affected, especially due to the complete shutdown of operations following the implementation of EMCO in early July.

Company CEO Datuk Nik Hamdam Nik Hassan said many companies that are crucial to the production and supply chain are located within Selangor and Kuala Lumpur. “Prolonged business and supply chain disruption will have dire consequences on the industry, especially due to the fact that the local automotive industry is highly dependent on the domestic market,” he said.

“The continued shutdown of vehicle sales, production and distribution of motor vehicles, components and spare parts, closure of showrooms and distribution centres, as well as the complete shutdown of operations would lead to the eventual closure of businesses, especially for smaller industry players.”

“The current scenario is not just about inconvenience to consumers, but may involve risks to vehicle owners due to the continuous usage of under-serviced vehicles and the inability to replace damaged parts when the need arises,” the statement reads.

Similarly, UMW Toyota Motor president Ravindran Kurusamy said the closure of all Toyota and Lexus showrooms has meant that the company has not been able to conduct any business. KL and Selangor remain in Phase 1 in the National Recovery Plan (NRP), which places heavy restrictions across the economy. Company deputy chairman Akio Takeyama added that prolonged restrictions could impact not just passenger vehicles but also commercial vehicles, essential for goods deliveries across the country.

“Furthermore, export business will be affected as well as our subsidiaries export a substantial amount of automotive components as part of Toyota’s global supply chain. If this situation continues for long, we are concerned that our overseas customers may look for new suppliers as they cannot have their own production delayed due to shortage of parts from Malaysia. This could have an impact on Malaysia’s economy as a whole if export business declines,” Takeyama continued.

Tags: COVID-19

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