MOTORCYCLE sales have done better than expected despite the movement-control order (MCO), picking up slightly in May after a slump in April.

Malaysia Motorcycle and Scooter Dealers Association (MMSDA) chairman Wee Hong said the turnover rate shows that the industry is recovering.

There were 33,200 registrations of new motorcycles in March, despite the MCO. This was still lower than the 54,138 registrations in January and 57,017 in February.

April was the worst month so far, with only 1,468 registrations.

In the first half of May, however, overall sales are nearly 10 times higher than April, with11,636 motorcycles registered.

Wee attributed the May increase to low-income customers whose incomes were not affected during the MCO.

“If they have been able to retain their jobs, they still have income. And they also receive government subsidies.”

Malacca Automobile Traders’ Association chairman Tan Tien Chye, meanwhile, said current sales are still sustainable because of Hari Raya, when consumer sentiment for new vehicles is usually high.

Performance in the last half a month has been better than anticipated, Tan said.

But to ensure the recovery lasts, Tan said the government should look at sustaining the purchasing power of the B40 group as part of the recovery plan that Putrajaya is to roll out by the end of this month.

To what extent other industries recover will also affect motorcycle dealerships, as while the bulk of customers are lower-income earners, others are from all walks of life as well.

“If other industries are not performing well, then the motorcycle industry is likely to take a hit also,” Tan said.

“There must be clear arrangements from the government to keep industries alive. If employers can still see a future, they will keep workers.”

Wee said while overall sales might be better than expected, dealerships are still struggling with cost and overheads.

Dealerships often provide a one-stop centre for services, including sales, maintenance, insurance, yet can only accommodate a small number of customers because of social-distancing requirements. – May 24, 2020.