New figures released by the Malaysian Automotive Association (MAA) continue to show optimism for vehicle sales, after a mammoth rise in commercial vehicles in 2021, following last year’s Movement Control Order (MCO).
The Market Starts to Gain Traction
The monthly figures in April 2021 showed a 12.1% dip from the previous month. Factors for this decline include the third MCO, which has started to bite within the market, as well as a shortage of computer chips which impacted sales of certain brands. Sales, however, have doubled in comparison with the year-to-date sales for the year before. Last April’s figures were 9,548, as opposed to 2021’s stronger 20,460.
Production is also showing healthy gains after last April’s exceptionally low figure of 35 commercial vehicles was followed by a 39,570% increase to 3,626 in 2021, putting last year’s MCO into stark contrast. The year-to-date figures reflect this as 2020’s 6,972 units reflects a reduced production due to the first MCO, while 2021’s 15,123 units shows a market getting back on its feet.
The MAA predicts a cooling off of sales in the month-to-come due to a range of factors. May is a shorter working month due to the Hari Raya festival holidays. More importantly, Malaysia is in the middle of the third MCO, meaning businesses will be affected in Selangor, Kuala Lumpur, Johor, Penang, Kelantan and Sarawak. This will lead to a smaller footfall of visitors at showrooms. Finally, much like in April, a shortage of computer chips will continue to affect the sales of certain makes.
