Malaysian LV Sales Skid Linked to Market Uncertainty

Malaysian new-vehicle sales fell for the second month in a row in May, dropping 14.9% year-over-year to 49,634 units.

The Malaysian Automotive Assn. says deliveries also were down 5.4% from April as consumers adopted a wait-and-see attitude due to uncertainties in the market.

Consumers may be holding off vehicle-buying decisions to see what prices do after the government’s election campaign promise to reduce the cost of new autos and make changes in national automotive policy.

New-car sales fell 15.8% in May to 43,398 units, while commercial vehicles slipped 8.1% to 6,236.

With the MAA forecasting June sales pushed slightly higher by upcoming promotions, auto makers increased production 2.2% last month to 47,301 units.

Car output rose 6.8% to 43,146 units, but CV builds declined 7.0% to 4,155.

After five months, Malaysian production was up 4.7% to 244,079 units with cars accounting for 219,903, up 6.5%, and the CV build down 9.0% to 24,176.

Despite the market slowdown, Malaysia’s Business Times reports local market leader Perodua aims to boost its full-year sales 3% this year to 194,000 units.

“That is if the current momentum continues and no major challenges surface,” President and CEO Aminar Rashid Salleh says.