PETALING JAYA: Total vehicle sales slipped 19% year-on-year to 46,583 units last month, mainly due to the end of the sales tax exemption period and shorter working month following the festive Hari Raya Aidilfitri holidays.
In a statement yesterday, the Malaysian Automotive Association (MAA) said total industry volume (TIV) in April receded by 41% month-on-month after the industry all-time high of 78,849 units achieved in March 2023.
“However, the overall total vehicle registration for January to April 2023 (at 239,183 units) is still 10% higher, compared with 217,452 units achieved during the similar corresponding period in 2022.
“Similarly, lower production was recorded in April 2023 (at 41,160 units), compared with 76,069 units in March 2022,” the association said.
An analyst from a local bank-backed brokerage said the TIV performance for April was within expectations.
“Compared with March, TIV performance for April was lower and to be expected, as many customers rushed to fulfill their bookings before the end of the sales exemption period, which expired on March 31.
“Additionally, TIV in March was also spurred by the rush for deliveries by companies with their financial year ending March 31, as well as Hari Raya-related promotional campaigns,” he added.
On the TIV outlook for this month, MAA said it expects a slight recovery in vehicle sales.
“This is due to easing supply chain issues, as well as the much longer working month (compared with April),” it said.
In a report earlier this month, MAA president Mohd Shamsor Mohd Zain told StarBiz that the outlook for the second quarter of 2023 will be positively supported by a stable economic outlook.
Moving forward, he said the sustainability of the market performance will depend on Malaysia’s economic indicators, which in turn will impact market buying sentiment.
Post the tax exemption period, Mohd Shamsor said MAA members will still continue with campaigns and provide value-added services to improve demand, while also providing more options to customers.
Additionally, he said the government’s incentive on electrified vehicles such as hybrid electric vehicles and battery electric vehicles, will boost the automotive industry.
For 2023, MAA forecasts TIV to decline 9.8% year-on-year to 650,000 units in 2023, owing to the ongoing supply constraints and weakening consumer confidence on the back of rising interest rates.
In a recent report, Kenanga Research said it is maintaining its 2023 TIV projection of 720,000 units, which will match the record level achieved in 2022.
“Our optimism is underpinned by strong consumer confidence that will be supported by a stable economy and a healthy job market.”
The research house also expects TIV in 2023 to be buoyed by attractive new models and stable new car prices, thanks to the deferment of new excise duty regulations.
“Our projection is about 11% higher than the 650,000 units projected by MAA,” it said.
