Vehicle sales rise 28% year-on-year in July

PETALING JAYA: Total vehicle sales rose 28% to 63,676 units in July from 49,934 units last year, due to normalisation of the automotive supply chains and fulfilment of bookings received for new model launches recently.

In a statement, the Malaysian Automotive Association (MAA) said total industry volume (TIV) for July 2023 was 1.7% higher than June 2023 (which was at 62,593 units), as vehicle sales continued with upward momentum.

Of the number of vehicles sold last month, 57,939 consisted of passenger cars while 5,737 units consisted of commercial vehicles.

Comparatively, a total of 44,574 passenger cars and 5,360 commercial vehicles were sold in the same month last year.

Year-to-date July, total vehicle sales rose to 429,807 units from 381,680 units in the previous corresponding period.

Separately, the MAA said total industry production recorded in July 2023 stood at 66,862 units, which was much higher compared with 58,051 units in June 2023.

On the outlook for August, the MAA said vehicle sales are expected to be slightly higher than July 2023’s level.

“This is due to the introduction of a few new models as well as National Day promotional campaigns by some car companies.”

Last month, the MAA revised its TIV forecast for 2023 upwards to 725,000 units from 650,000 units in January, on the back of a stable economic outlook, new model launches and further improvement in the automotive industry supply chain environment.

Despite the expected strong TIV for the year, Hong Leong Investment Bank Research in a recent report said it is still maintaining its “neutral” call on the local automotive sector.

“We expect TIV to drop after fulfilling the current huge backlog orders of 300,000 units.

“We are maintaining our TIV expectation of 700,000 units for 2023, as we anticipate continued strong deliveries backed by the high industry order backlogs and attractive new model launches.”

Despite an anticipated record-breaking TIV performance for this year, RHB Research said it expects car sales to soften year-on-year in 2024.

“We also think share prices have largely priced in a strong 2023.

“Key downside risks to the sector include softer-than-expected orders and deliveries as well as resurgent supply chain issues,” it said.