August vehicle sales volume drops 22%, according to MAA

by SHAZNI ONG/ pic by TMR FILE

THE total sales volume of passenger and commercial vehicles for the month of August dropped 22% to 51,148 units compared to 65,550 units in the same month a year ago.

In a statement yesterday, the Malaysian Automotive Association (MAA) said the fall in sales volume was due to the zero-rated Goods and Services Tax (GST) in August 2018.

“The sales of passenger and commercial vehicles dropped 16.08% and 55.55% to 46,802 units and 4,346 units respectively.

“There were 55,772 passenger vehicles and 9,778 commercial vehicles sold respectively in August 2018,” it said.

On a month-on-month basis, MAA noted that vehicle sales in the country grew by 1% or 295 units higher in August than in July.

The total sales volume for passenger and commercial vehicles in the month of July this year was 50,853.

To date, carmakers have sold 398,335 vehicles or 66.39% of MAA’s total industry volume (TIV) forecast of 600,000 units for 2019.

On the outlook for next month, MAA expects sales volume to maintain at August 2019 level.

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 said 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 a downward trend with sales easing by 11.2% year-on-year 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.

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

There are several factors that would determine the demand including the introduction of new models, stringent hire-purchase lending rules, and consumers and businesses spending sentiment.