Vehicle sales rose 3% in August, MAA expects stable market going forward

by AFIQ AZIZ / pic by MUHD AMIN NAHARUL

A TOTAL of 52,800 units of vehicles were sold last month, 3% higher than the 51,148 units sold in previous year’s corresponding period.

According to a statement by the Malaysian Automotive Association (MAA), the total industry volume (TIV) for the month was, however, 8% lower compared to July 2020 which saw the sale of 57,552 units of vehicles.

MAA said the lower sale in August was attributed to the shorter working period due to the public holidays observed during the month under review.

The number was also a result of clearance of backlog of orders in July following the announcement of sales tax exemption incentive.

In total, Malaysia reported TIV of 285,045 units from January to August, compared to TIV of 380,552 units over the same period in 2019.

In terms of production, the country made 50,228 units of vehicles in August 2020 compared to 47,000 units in August 2019.

Year-to-date, 263,876 vehicles were produced for the period of eight months, lower than the 380,552 units of vehicles made over the same period last year.

Moving forward, MAA said the sales volume in September 2020 is expected to be maintained at August 2020’s level, backed by the ongoing promotional campaigns by car companies.

“Consumers remain cautious with the loan moratorium coming to an end on Sept 30, 2020,” the association said.

The uncertainty of the Covid-19 pandemic had forced MAA to revise the country’s TIV twice. Initially, the association forecast 607,000 units for January 2020, before revising it to only 400,000 vehicles in April.

Following the economic stimulus measures implemented by the government to spur consumer spending, including tax exemptions and discounts for car purchase, MAA said Malaysia’s auto sector could sell up to 470,000 units of vehicles this year.

The pandemic had also disrupted the production of cars in the country.