Malaysia’s new vehicle market expanded by 3.2% to 52,800 units in August 2020 from weak year earlier sales of 51,148 units, based on registration data released by the Malaysian Automotive Association (MAA).
The vehicle market has begun to recover from a 55% drop in the second quarter, after the government imposed its strict Movement Control Order (MCO) in March to help slow the spread of the COVID-19 pandemic in the country. GDP shrank by over 17% year on year in the second quarter, with household consumption plunging by 18.5%, fixed investments down by almost 29% and exports dropping by over 14%.
Go deeper with GlobalData
To help the vehicle market recovery, the government suspended sales tax in June until the end of the year, resulting in vehicle price cuts of between 2% and 7% in dealers across the country, according to local analysts. Total vehicle sales in June rose by 5% followed by a 13% increase in July – albeit against weak year earlier volumes.
The slow rate of growth in August pointed to a faltering market recovery, however, with consumer sentiment in the country still very weak. Passenger vehicle sales increased by just 1.7% to 47,591 units last month while commercial vehicle sales were almost 20% higher at 5,209 units.
Cumulative eight month sales were still down by over 28% at 285,045 units compared with 398,319 in the same period of last year, with passenger vehicle sales falling by 29% to 258,586 units and commercial vehicle sales down by 23% at 26,459 units.
Vehicle production in the country increased by almost 7% year on year to 50,228 units in August, but was down by almost 31% at 263,876 units year to date.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe automotive industry is hoping that recent new model launches in the country, including the Proton X50 and upgraded X70 this month, will help underpin the market. The MAA maintained its full year forecast of 470,000 units for 2020, down by 22% on 2019 volume.
