New vehicle sales in Malaysia fell by over 5% to 65,184 units in December 2021 from 68,854 units in the same month of last year, according to registration data released by the Malaysian Automotive Association (MAA).

The market last month continued to be disrupted by supply chain shortages and also by widespread flooding in large parts of the peninsula, resulting in domestic vehicle production slipping by 3% year-on-year to 54,166 units.

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Domestic sales were down by almost 4% at 508,911 in 2021 from 529,514 units in 2020, with passenger vehicles sales falling by 6% to 452,663 units while commercial vehicles were up by 16% at 56,248 units.

Overall vehicle production was down by less than 1% at 485,186 units over the full year.

In the first half of 2022 the market will be supported by the extension of the sales and service tax (SST) holiday, which expires at the end of June, as well as significant order backlogs although supply will continue to be disrupted in the short term.

Market leader Perodua reported a 14% sales decline to 190,291 vehicles in 2021 compared with 220,154 units in 2020, but said it expected volume to recover to 240,000 units in 2022 as supply chain shortages ease.

Proton said global sales increased by 4.5% to 114,708 last year, including 3,018 exports. The Saga was its best selling model with 42,627 deliveries, followed by the Geely based X50 and X70 SUVs, with 28,774 and 16,375 units respectively, and 16,153 Persona passenger cars.

The company this week announced an agreement with China’s Smart Automobile to distribute its electric vehicles in Malaysia and Thailand.

Toyota and Lexus distributor UMW Toyota Motor’s sales increased by 22% to 72,394 units last year, from 59,320 units in 2020, thanks to strong demand for its best selling Vios compact passenger car. The company launched the Toyota Corolla Cross Hybrid in January.