This article first appeared in The Edge Financial Daily on September 19, 2019

KUALA LUMPUR: Malaysia’s car sales fell 22% to 51,148 vehicles in August, from 65,550 vehicles a year ago, the third consecutive month of year-on-year (y-o-y) decline.

Of the total, passenger vehicle sales dropped 16.1% to 46,802 units from 55,772 a year ago, while commercial vehicles more than halved to 4,346 units from 9,778.

Overall production also fell 0.8% y-o-y in August to 47,000 units, from 47,387.

In a statement yesterday, the Malaysian Automotive Association (MAA) said the decline was due to the absence of a tax holiday, which the market enjoyed in the same period last year during the three-month window between the abolishment of the goods and services tax and the implementation of the sales and services tax.

Nonetheless, on a month-on-month basis, vehicle sales volume rose 1% or 295 units from 50,853 units in July, MAA data show.

The MAA expects sales volume in September to be similar to August, as it will be a short working month due to many public holidays.

Year to date, vehicle sales fell 6% to 398,335 units, from 423,615 units in the corresponding period in 2018.

Passenger vehicles declined 3.7% to 363,866 units during the eight-month period, from 377,907 units previously, while commercial vehicles fell 24.6% to 34,469 units from 45,708. The MAA said total vehicle production dropped 0.67% y-o-y to 380,940 vehicles, from 383,498 a year ago.