PETALING JAYA: Total vehicle sales hit an all-time high last month, rising 8% year-on-year (y-o-y) to 78,849 units due to the fulfillment of bookings made during the sales exemption period, which expired on March 31.
In a statement yesterday, the Malaysian Automotive Association (MAA) said sales during the month were also spurred by the rush for deliveries by companies with their financial year ending March 31, as well as Hari Raya-related promotional campaigns.
On a y-o-y basis, a total of 70,958 units of passenger vehicles were sold last month, compared with 65,903 units in the previous corresponding period.
The number of commercial vehicles sold were also higher at 7,891 units last month, compared with 7,347 units in March 2022.
An analyst with a local bank-backed brokerage said sales for the month of March were within expectations.
“Last month was the final month for car companies to deliver the sales and service tax-exempt orders to customers and that helped drive total industry volume (TIV) to record levels,” he said.
On the outlook for vehicle sales for April 2023, the MAA said TIV is expected to be lower than March due to the shorter working month as a result of the Hari Raya festive holidays.
For the three-month period ended March 31, 2023, TIV rose to 192,474 units compared with 159,846 a year earlier.
The first quarter of 2023 saw a number of local car companies recording stellar performances.
Earlier this month, Proton Holdings Bhd announced that its first-quarter 2023 sales soared 50.9% y-o-y to 40,287 units, with market share growing to an estimated 21.2%.
The national automotive company said that for March alone, 14,573 units (domestic and export) were sold, an increase of 3.8% over February and 11.9% more than the same month in 2022.
Meanwhile, Perusahaan Otomobil Kedua Sdn Bhd (Perodua) announced record sales of 32,179 vehicles in March, while also manufacturing 33,666 units.
On a quarterly basis, Perodua said its production increased by 33.9% to 84,800 units compared with 63,325 units that were produced in the same quarter of 2022.
In terms of sales, Perodua’s registration rose by 27.5% to 78,564 units in the first three months of 2023 compared with 61,624 units in the same period last year.
In a recent report, Kenanga Research said it is maintaining an “overweight” call on the local automotive sector.
“We expect TIV in 2023 to hit 720,000 units, matching the record level achieved in 2022.
“Our optimism is underpinned by strong consumer confidence, supported by a stable economy and a healthy job market as well as the affordability of motor vehicles underpinned by the recent pause in interest rate hikes.”
Additionally, the research house said car prices are anticipated to remain stable, thanks to the deferment of new excise duty regulations and potentially cheaper hire-purchase cost.
It said this was due to the introduction of a reducing balance method in the calculation of interest charges.
Kenanga Research also said the introduction of attractive and new car models will spur TIV growth this year.
