New vehicle sales in Malaysia dropped by 1% year-on-year in August to 47,227 units, according to government registration data released by the Malaysian Automotive Association (MAA).
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Month-on-month, sales were down by 12.5% compared with a robust performance in July when 53,984 units were sold.
The association cited rising interest rates, tightening criteria for awarding credit and the recent fuel price hikes as the main reasons for the sluggish market conditions. Political instability and growing unease with the economic outlook may also have made consumers more cautious.
Separately, analysts speculated that buyers may have brought sales forward into July to secure low interest rates ahead of hikes. Vehicle production rose by almost 20% during the month to 46,316 units, compared with 38,705 units a year earlier.
In its statement, the MAA warned that sales could drop further in September on a shortened working month due to the Hari Raya holidays. The slowdown in sales has affected most brands, including Perodua and Proton – which had done well so far this year.
