Malaysia New-Vehicle Deliveries Stumble in January

New-vehicle sales got off to a slow 2014 start in Malaysia, with January deliveries falling 8.7% year-on-year to 50,273 units.

The result was down 17% from December, the Malaysian Automotive Assn. says in a report quoted by the government news agency Bernama.

“Heavy discounts by car companies given out in December 2013 resulted in many bookings concluded in December 2013,” the MAA says.

The industry association predicts the February sales level will be on par with January, citing a short working month due to the Chinese New Year holidays.

Local media reports say Perodua continued to lead the market with January sales of 12,091 units, down from year-ago’s 16,339. This was comfortably ahead of Malaysian rival Proton with 9,735 deliveries, down from 11,583 in the same month last year.

The market surprised analysts, including Kavan Mukhtyar, Frost & Sullivan partner and head of automotive and transportation practice for Asia-Pacific, who had expected January deliveries to top 55,000 units with results of the national election and the new National Automotive Policy giving consumers better clarity.

Frost & Sullivan is forecasting full-year sales will rise 4.2% to 675,000 units.

Seventh-place Ford bucked the January decline, reporting its sales rose 19% to 1,122 units, thanks to demand for the all-new Focus, Kuga and recently launched Fiesta. The result follows Ford’s best result in Malaysia in two decades with 2013 deliveries jumping 50% to 10,660 units.

Sixth-place Mitsubishi, with January sales of 1,204 units, up from prior-year’s 1,029, launched the first locally assembled Mitsubishi ASX during the month and indicates it is looking into the possibility of local assembly of its Mirage and Attrage sedans.

“We are seriously discussing with local assemblers on the feasibility of assembling these two models,” CEO Tetsuya Oda is quoted as saying. A favorable decision, he says, depends on volume in terms of local and overseas demand.