Key points:

♦ The second half of 2019 started off with a higher Total Industry Volume (TIV) compared to June 2019, with 50,853 vehicles registered. This was a 19.5% increase or 8,327 units.

♦ 91%, or 46,189 units, of the new vehicles delivered were passenger vehicles (excluding pick-up trucks).

♦ The Malaysian Automotive Association (MAA) attributed the higher TIV to a longer working month, giving companies more selling days.

♦ Comparisons to the numbers achieved in 2018 show major differences due to the unusual market condition in July 2018. This was brought on by the new government’s decision to remove (or zero-rate) the Goods & Services Tax (GST) for three months. With the purchase price of all new vehicles reduced – a very rare occurrence in the industry’s history. Sales rocketed to a TIV of 68,466 units, the second highest TIV reported since the MAA was established in the 1960s and promoted transparency by sharing the data with its members and the public.

♦ By the end of July last year, the cumulative TIV after 7 months had reached 358,065 units. This year, without the GST-free boost, it has reached 347,187 units, 6% lower than the level in 2018. 317,064 units were made up of passenger vehicles, while the remainder of 30,123 units were commercial vehicles (including pick-up trucks).

♦ As the MAA has made a forecast of 600,000 units for the 2019 TIV, it means that monthly sales must be 48,387 units in the remaining 5 months. The MAA expects the commercial vehicle sector to pick up with new and ongoing development projects and the segment to account for 66,000 units.

♦ Generally, though, the expected increase in TIV is not significant as the forecast of 600,000 units is just 1,286 units more than the actual TIV for 2018 which was 598,714 units.

♦ August sales are expected to be at the same level as July’s although promotions celebrating Merdeka month may persuade some people to change their vehicles.