Malaysia’s new vehicle market declined sharply in October, by 14.2% to 47,879 units from 55,754 units a year earlier, according to data released by the Malaysian Automotive Association (MAA).

Commercial vehicle sales led the market lower, with sales plunging by over 20% to 5,347 units, while passenger vehicle sales declined by 13.3% to 42,522 units.

Overall vehicle sales in the first 10 months of the year were 13.9% lower at 466,208 units, from 541,277 units in the corresponding period of last year, reflecting the continued slowdown in the country’s economy. Annual GDP growth has fallen to just above 4% so far this year, from close to 5% in the whole of last year due mainly to declining export demand.

Reports that the government may be considering new incentives to help the market recover next year, such as lower excise tax rates on small engine cars for first time buyers, may also be contributing to the current sales decline.

Vehicle production, which is mostly intended for the domestic market, fell by 4.8% to 53,084 units in October from 55,783 units a year earlier, while year to date output was 15.2% lower at 440,049 units.