VEHICLE sales in Malaysia fell 41.1% to 174,675 units in the first half of the year compared with 296,317 in the same period last year, Malaysian Automotive Association (MAA) president Aishah Ahmad said today.

She attributed this downtrend to the Covid-19 outbreak and the movement-control order imposed to curb the spread of the virus.

“As a result of the pandemic and the restrictions, sales of new motor vehicles had been badly affected,” she said in a press conference today.

“Except for February and June, the year-on-year (y-o-y) sales trend was consistently lower for the first half of 2020 compared to the same period in 2019.”

Passenger vehicles accounted for a bulk of the sales at 91%. It also saw a y-o-y decline of 41.3% to 158,876 from 270,861 in the same period last year.

Commercial vehicles, on the other hand, fell 37.8% from 25,456 units to 15,799 units.

All sub-segments of passenger vehicles and commercial vehicles recorded decline in sales.

Total production volume saw a decline of 41.7% to 166,049 units compared to 284,640 in the same period last year, due to the closure of motor assembly plants from mid-March to mid-May because of the implementation of the movement control order.

Aishah said automotive companies faced headwinds in the beginning of the year, with the change in the open market valuation methodology by the Customs Department in January 2020.

This led to delays in new car launches and sale disruptions.

Demand was also hit by economic uncertainties and erosion in consumers’ confidence, she said.

Vehicles sales rose marginally higher by 1.05% in June, whereby 44,695 units were sold compared with the same month in the preceding year.

On a month-on- month basis, sales increased from 23,309 units in May to 44,695 in June.

Sales plunged in March April and May because of the MCO as automotive companies could not operate.

However, month-on-month sales improved from May to June following the announcement of the sales-tax exemption until year-end under the Penjana package. – July 24, 2020.