Figures released by the Malaysian Automobiles Association (MAA) show that, while the third Movement Control Order (MCO) starts to bite, the market is clearly in a healthier position than this time last year.
The Malaysian Market Moves into Gear
After a crippling time last April when only 152 vehicles were sold, 2021 is showing the elasticity of the market with 57,912 vehicles registered with the majority being passenger vehicles (52,628). The substantial growth from April 2020 when only 133 passenger vehicles were sold shows that Malaysia is better equipped to navigate the uncertainty caused by the prolonged fallout from the Covid-19 pandemic. Year-to-date figures in April 2020 showed 105,424 vehicles were sold, with 95,876 being passenger vehicles. The 179,096 figure for 2021 passenger vehicle sales shows a healthy 87% increase, as well as a combined growth rate of 114% when incorporating commercial vehicles into the mix.
Production has also undergone a large shift, with figures from April 2020 for passenger and commercial vehicles totalling only 275 units in comparison to 51,390 in 2021. April 2021 has seen an increase of close to 20,000% with passenger vehicles increasing from 240 to 47,764. The year-to-date figures are also healthy with an overall increase of 83%, from 108,719 to 198,476 and passenger vehicles produced totalling 183,353 in 2021 against 101,747 the year before, making for an 80% increase.
The MAA has noted that a 12.3% monthly sales fall experienced in April was due to the third MCO affecting Selangor, Kuala Lumpur, Johor, Penang, Kelantan and Sarawak, as well as a shortage of computer chips, which impacted sales of certain brands.
The MAA has noted that sales should fall again in May 2021, due to a host of factors. The Hari Raya festival means Malaysia will have a shorter month. Equally important, the third MCO will affect sales and footfall of customers at showrooms. Finally, the issue of the computer chips is still ongoing and will negatively affect sales of particular car brands.