KUALA LUMPUR (April 16): Malaysians are continuing to buy more vehicles, driven by tax holidays and pent-up demand.

According to the Malaysian Automotive Association (MAA), total vehicle sales in the country increased by 49% to 63,787 units in March on a month-on-month (m-o-m) basis, from the 42,784 units achieved in February. March was also the second straight month when sales increased, from 32,829 units sold in January. Notably, January sales plunged 109.68% m-o-m from 68,836 units in December last year.

Meanwhile, on a year-on-year (y-o-y) basis, the number of vehicles sold in the country increased by three times to 63,878, from 21,242 in March 2020.

Passenger vehicles accounted for 56,478 units in March, while 7,400 commercial vehicles were sold.

In comparison, 18,974 passenger vehicles and 2,268 commercial vehicles were sold in March last year.

On a year-to-date (YTD) basis, total vehicle sales increased by 33% to 139,499 units, from 105,253 units in the corresponding three months last year.

The association said the higher YTD sales volume was due to the rush for deliveries by companies whose financial years ended on March 31, 2021, new model launches and the low total industry volume in March 2020 on account of the first Movement Control Order in March last year.

It should also be noted that the sales and services tax waivers were only introduced on June 15 last year. The tax holiday has been extended to June 30 this year.

For April, the MAA is expecting sales volume to be maintained at March's level, following ongoing aggressive promotional campaigns by car companies.

In terms of production, production increased by 174.62% y-o-y to 62,221 vehicles in March, from 22,657 vehicles seen in the corresponding quarter last year.

YTD production increased 35.63% y-o-y to 147,086 units, from 108,444 units seen last year.