The Malaysian Automotive Association (MAA) has said total vehicle sales have declined in June to 50,275 units compared to 57,362 units sold in the same month of last year.
It said the 12% decrease in sales was caused by a short working month due to Hari Raya celebration, it said in a statement today.
“For passenger vehicles, sales in June eased to 45,339 units compared with 50,978 units.
“Commercial vehicle sales decreased to 4,936 units from 6,384,” it added.
However, MAA also said the total industry volume (TIV) in the first six months of the year was 3% higher compared to the corresponding period last year.
On outlook, it said sales volume for July 2017 was expected to be maintained at the same level as June due to the expected delays in the vehicle registration process arising from uncertainties in the liberalisation of motor insurance from July 2017.
Highest month-on-month growth was registered by Nissan, at 7%, followed by Perodua at 4% and Proton at 1%, while the lowest was Toyota at -12% followed by Mazda at -9%.
However, highest year-on-year growth was recorded by Proton, which was the only carmaker to report positive growth, at 4%, followed by Honda at -5% and Perodua at -11%, while the lowest performers were Nissan at -41% followed by Mazda at -38%.
Kenanga analyst Wan Mustaqim Wan Ab Aziz said the decline was due to consumers holding back purchases for new models expected to be unveiled in the second half of the year.
Meanwhile, he also said sales volume for July is expected to be maintained at June level with anticipation of delays in the process of vehicle registrations due to uncertainties arising from the liberalisation of motor insurance from July.
However, he believes the year-end forecast can be maintained at 590,000 he believes it is achievable with more robust sales in the months to come with upcoming model launches such as the new Perodua Myvi, face-lifted Perodua Bezza, Honda City Hybrid, Honda Jazz Hybrid, Honda CR-V, the new Toyota CH-R, Toyota Hilux 2.4G, Toyota Vios 2017, face-lifted Toyota Camry, Mazda CX-5 2017 and Mazda CX-9.
However, the view on the sector remains conservative as consumer purchases of automobiles have been clamped by stringent lending guidelines as well as consumer sentiment lingering at level below the optimistic threshold on higher living expenses.
“Additionally, the recent strengthening of the MYR against USD/JPY is still insufficient to cushion the negative effects on the automakers,” he said in his report.