PETALING JAYA: Motor vehicle production is expected to decline to 480,000 units this year from 550,000 units in 2008, said Minister of International Trade and Industry, Tan Sri Muhyiddin Yassin.

He said the decline would be driven by the anticipated lower consumer confidence and tighter credit screening by banks.

“The current global financial crisis and economic slowdown are impacting the automotive industry worldwide and the car companies globally are experiencing severe difficulties,” he said at the opening of the Naza Italia Showroom and Service Centre here yesterday.

The showroom and centre, which is the largest Ferrari and Maserati showroom outside of Italy, was officiated at by Yang di-Pertuan Agong, Tuanku Mizan Zainal Abidin and Raja Permaisuri Agong Tuanku Nur Zahirah.

Muhyiddin said the government, in an effort to assist the motor vehicle industry during this economic crisis as well as to ensure its continued development, has allocated an additional RM200 million to the automotive development fund under the second economic stimulus package.

Out of which, a total of RM125 million will be converted to soft loan scheme for Automotive Development administered by Malaysian Industrial Development Finance Bhd (MIDF) and RM60 million for further consolidation and rationalisation of dealers and parts and components vendor.

About RM15 million is to establish the Malaysia Automotive Institute.

He said in an effort to further enhance and promote the development of this industry, the government was currently reviewing the National Automotive Policy (NAP).

“Consultation among various government ministries and agencies as well as the industry associations, are being conducted to ensure the NAP contributes effectively towards the development of the industry,” he said.

Muhyiddin said the review would further improve the existing guidelines, policies and incentives, taking into consideration the impact of the current global and regional economic situations.

— Bernama