Malaysia's new vehicle market continued to shrink in May 2016, by 12.8% to 44,669 units compared with already weak 51,254 sales in the same month of last year, according to the monthly automotive industry report released by the Malaysian Automotive Association (MAA). The market continues to be adversely impacted by a slowing economy.
Passenger vehicle sales dropped to 38,699 units last month despite strong demand for new models such as the Perodua Axia and the Honda HR-V, while commercial vehicle sales amounted to 5,970 units.
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The market has weakened significantly this year, reflecting a sharp slowdown in economic growth in the country amid weak exports, rising consumer uncertainty and tightening credit.
Sales in the first five months of the year fell by 17.6% to 218,101 units, from 264,818 units a year earlier, including 193,953 passenger vehicles and 24,148 commercial vehicles.
Vehicle manufacturers cut production by close to 7% to 47,650 units in May, resulting in an almost 20% in year-to-date output to 222,035 units.
