KUALA LUMPUR (June 20): Malaysia's vehicle sales fell for the fourth consecutive month in May, sliding 12.21% to 40,221 units from 45,133 units in the same month a year ago.

The Malaysian Automotive Association (MAA) said the government's announcement on May 16 that the goods and services tax would be zerorised effective June 1 for a three-month period "had resulted in market uncertainties".

"Many customers were holding back on the purchase and registration of new vehicles," MAA said in a statement today.

However, the association expects vehicle sales in June to be "much higher," boosted by Hari Raya festive season promotional campaigns and offers, amid the three-month zero-rated GST period from June to August.

For the January to May period, MAA said total industry volume (TIV) sales dropped 3.38% to 203,299 units, compared to 210,407 units in the corresponding period a year ago.

For the period, TIV sales comprised 34.46% of the 590,000 units forecast to be sold in 2018.

On vehicle production, MAA said May production was 7.53% lower to 40,720 units, from 44,034 units in the same month last year.

However, on a cumulative basis, production of passenger vehicles climbed 8.74% to 224,945 units against 206,859 units previously.

Sales of Passenger Vehicles in 2018

Source: The Malaysian Automotive Association