Vehicle sales may slump to 13-year low

Slow market: Prospective buyers view a car at Proton showroom in Shah Alam. the last time vehicle sales failed to breach the 500,000-unit mark was in 2007, when TIV stood at around 480,000 units.

PETALING JAYA: Malaysian vehicle sales could slump to a 13-year low, as multiple extensions of the movement control order (MCO) amid the Covid-19 pandemic is expected to create negative implications on corporate earnings, employment security and consumer sentiment.

MIDF Research said in a report it is slashing its total industry volume (TIV) projection by 16.5% to 504,850 units for 2020, adding that automotive sector earnings are expected to fall 51% year-on-year.