New vehicle sales in Malaysia fell by 2.7% to 58,646 units in July, from 60,267 units a year earlier, according to the Malaysian Automotive Association (MAA).
The new goods and service tax has affected buying sentiment while the drop in the value of the ringgit and weakening external demand are also affecting domestic confidence.
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Cumulative seven month sales were slightly, by 0.3% at 380,830 units compared with 381,919 units in the same period of last year.