October vehicle sales climb ahead of price hikes in 2016

KUALA LUMPUR: Sales of vehicles in October rose 9% to 55,754 units from September as consumers bought ahead of expected price hikes in 2016 as the ringgit weakened against the major currencies.

The Malaysian Automotive Association said on Wednesday the higher sales volume was due to aggressive year-end promotional campaigns by car companies.

When compared to a year ago, the vehicle sales were 3% or 1,563 units higher.

However, year-to-date vehicle sales slipped 1% to 541.142 units from the 546,513 in the previous corresponding period.

On the outlook for November, the MAA expected sales volume to be maintained at October levels.

“The factors were the continuation of aggressive year-end promotional campaigns and consumers buying forward in anticipation of a price increase in 2016,” it said.

The MAA also pointed out the October sales of 55,754 units comprised of 49,063 passenger vehicles and the remainder were commercial vehicles.

As for production, the industry recorded an increase of 21.9% to 55,783 units compared with 45,763 units a year ago.

Of the 55,783 units in October, passenger vehicles accounted for 50,974 units and 4,809 commercial vehicles in October. This was in contrast with the 41,133 passenger vehicles and 4,630 commercial vehicles in October 2014.

Year-to-date, production of vehicles rose to 519,171 units in October from 497,930 units in the previous corresponding period.