New vehicle sales in Malaysia rebounded 10% to 63,489 units in October 2021 from 57,695 units in the same month of last year, according to registration data released by Malaysian Automotive Association (MAA).

The market last month began to recover from strict social and business restrictions imposed by the government at the beginning of June to help control surging cases of the COVID-19 Delta variant.

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Economic activity declined by 4.5% year on year in the third quarter after a 16% rebound in the second quarter from very depressed year earlier data during the initial wave of the pandemic.

In the first 10 months of the year (YTD) new vehicle registrations were down 5% at 382,379 units from 401,714 units in the same period of last year, with passenger vehicles sales falling 7% to 339,873 while commercial vehicles were up 17% at 42,506 .

Overall vehicle production rose 12% to 65,410 units in October but was down 1% to 69,406 YTD.

Proton sales increased 29% to 13,362 units in October and 1.6% to 86,379 YTD while Perodua sales rose 11% to 27,858 last month but YTD sales were down 15% to 146,951.

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Toyota and Lexus distributor UMW Toyota Motor October sales increased 6% to 8,500 units while YTD volume was up 25% to 54,618.

The MAA expected sales to continue to recover in the remaining two months of 2021, supported by year end promotional campaigns and extension of the sales and service tax (SST) exemption for new vehicles until the end of June 2022.

Full year sales were expected to pass 500,000 units in 2021.