July vehicle sales volume falls 25.7%

Sales of passenger and commercial vehicles fell by 24.5% and 35.7% to 46,189 units and 4,664 units respectively


SALES volume for passenger and commercial vehicles in the month of July fell 25.7% to 50,853 units compared to 68,466 units sold in the same month last year.

“Sales volume for July 2019 was 25% lower than the corresponding period last year due to the zero-rated Goods and Services Tax (GST) in July 2018,” the Malaysian Automotive Association (MAA) noted in a statement yesterday.

According to MAA’s statistics, sales of passenger and commercial vehicles fell by 24.5% and 35.7% to 46,189 units and 4,664 units respectively.

In July 2018, there were 61,212 passenger vehicles and 7,254 commercial vehicles sold respectively.

On a month-on-month basis, MAA noted vehicle sales in the country grew by 19.5% or 8,327 units higher in July than in June due to the longer working month.

On the outlook for next month, MAA expects sales volume to be maintained at the July 2019 level.

To date, 347,187 vehicles have been sold, or 57.8% of MAA’s total industry volume (TIV) forecast of 600,000 units for 2019.

Proton stated the company sold 8,590 units in July compared to 7,615 units in June. Year-to-date, the brand has sold 52,108 units as of July. The year-on-year (YoY) figure is 46.5% higher than the 35,561 units it managed to sell in the same period in 2018.

Proton’s market share in July is forecast to be 16.5% of the TIV, while its overall market share for the year is expected to be around 15%.

To recap, carmakers sold 296,334 vehicles in the first half of 2019 (1H19), 2.3% higher or 6,735 units more compared to the same period last year.

This was equivalent to 49.4% of MAA’s 2019 TIV forecast of 600,000 units.

In July, MAA president Datuk Aishah Ahmad noted the increase in TIV was contributed by the passenger vehicle segment, which rose 3.8% or 9,952 units to 270,875 units from 260,923 units sold in 2018.

The commercial vehicle segment continued in downward trend with sales easing by 11.2% YoY or 3,217 units to 25,459 units for the period.

“On a monthly basis, the sales volume for May 2019 was the highest recorded during the period under review.

“The TIV for May 2019 was 60,780 units, the only time the TIV had exceeded the 60,000-unit mark during the period under review,” Aishah said at the 1H19 Market Review in Petaling Jaya, Selangor, last month.

For 2H19, Aishah said MAA maintains its original TIV forecast of 600,000 units for 2019.

She highlighted several factors that would determine the demand including the cut in Overnight Policy Rate to 3%, the introduction of new models, stringent hire-purchase lending rules, and consumers and businesses spending sentiment.

Separately, Aishah said MAA is hopeful for the government to continue to incentivise energy-efficient vehicles under the new National Automotive Policy (NAP) to allow industry players to achieve cost competitiveness.

The NAP 2019 is expected to be announced by year-end.