Credit Curbs, Consumer Caution Cut Malaysia Sales

Malaysia’s new-vehicle market continued in the slow lane in April with sales slipping 6.7% year-over-year to 42,177 units.

The Malaysian Automotive Assn., citing stricter car-loan requirements and “cautious” consumer sentiment, says in a statement it expects sales to remain at the same level this month.

The April result was down 13.6% from March.

Car sales dropped 7.4% to 37,893 units last month, while the 4,284 commercial-vehicle deliveries were down exactly one unit from a year earlier.

After four months, the Malaysian market was down 19% at 173,432 units, a result still reflecting last year’s rush to buy new vehicles before the April 1 introduction of a new goods and service tax.

Car sales from January through April fell 18.3% to 173,432 units and CVs were off 22.7% at 18,178.

With the market backsliding, manufacturers slashed April production 27.3% to 44,794 units. The month’s build included a 27.6% drop in new cars to 41,075 units and a 23.9% cutback in CVs to 3,719.

The result left year-to-date output off 22.6% at 174,385 units. Car production fell 21.7% to 163,055 units and CV output was off 33.3% at 11,330 units.