Malaysia's car sales down 12% y-o-y in January

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KUALA LUMPUR (Feb 20): Car sales in January dropped 12% with 42,623 units sold compared with 48,450 vehicles sold in the same period last year, according to the Malaysian Automotive Association (MAA).

MAA said in a statement today that the decline was due to the Chinese New Year festive holidays, which led to a short working month, and market uncertainty following news of the new excise duty regulations implementation.

Passenger vehicles made up the bulk of the total with 39,127 units while the remaining 3,496 were commercial vehicles.

A total of 45,416 vehicles were manufactured in the month, down 16.6% from 54,446 units produced in the corresponding month in 2019. The latest production tally comprises 42,527 passenger vehicles and 2,889 commercial vehicles.

MAA expects sales volume to pick up in February as issues pertaining to completely-knocked down (CKD) excise duty valuation have been resolved.

On Jan 22, the Ministry of Finance said there will be no increase in CKD vehicle prices for a period of one year until Dec 31, 2020.