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Car Sales Dip Significantly due to Malaysia’s Enhanced Total Lockdown

Car Sales Dip

The Malaysian Automotive Association (MAA) has released June’s sales figures, which show a 95% drop in passenger vehicle sales, demonstrating just how affected the industry is by Malaysia’s Enhanced Movement Control Order (EMCO).

Industry Significantly Affected by Changing Government Policy

As Malaysia battles a growing outbreak of cases, the government has decided to introduce a stricter EMCO. As a consequence, the industry has had to scale back operations, with just 1,841 vehicles sold in June with some registrations spilling over from May. May’s figures were a healthier 41,988. Part of the reason the industry is so affected is that the government has not deemed the automotive sector an essential economic element. The industry has nevertheless had some positive news with year-to-date sales reaching 223,838 this year as opposed to 157,710 the previous year.

Production has naturally suffered as well, with just 246 vehicles being produced in June, compared to 40,159 the prior month. However, like with sales, the year-to-date figures show promise, with 223,772 vehicles produced so far, in comparison to the same time in 2020, with a substantially lower 157,174 vehicles made.

The MAA has predicted minimal sales for July 2021, especially due to Selangor and various localities in Kuala Lumpur not being allowed to operate during the EMCO period. Only showrooms in Sabah are allowed to operate under the second phase of the government’s National Recovery Plan.

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