new vehicle sales Archives

New vehicle sales start final quarter on high note with 21% increase in Total Industry Volume

New vehicle sales for October – the first month of the final quarter of 2019 – began on a high note with a 21% increase over the Total Industry Volume (TIV) in September to 53,870 units. This volume was also 14% higher than for the same month in 2018 although a comparison may not be right since it was after the GST-free period when sales had seen a huge boost and the market slowed down in the first few months after that.

The Malaysian Automotive Association (MAA) attributed the increased TIV to more selling days as well as more working days. When there are many holidays, there is also disruption in processes such as registration and loan approvals, delaying completion and affecting deliveries.

Oct 2018 - Oct 2019 Sales — *Source: Monthly reports of Malaysian Automotive Association*

By segment, passenger vehicles (excluding pick-up trucks for personal use) accounted for 93% of the TIV in October, a 16% increase over the same month in 2018. However, commercial vehicle sales were virtually unchanged with 4,883 units (including pick-up trucks) delivered.

The cumulative TIV after 10 months of this year reached 496,861 units which was 5,267 units lower than for the same period in 2018. The higher TIV last year was due to the 3-month GST-free period which saw an above-average surge in monthly sales as buyers could enjoy significant savings (especially for the more expensive models).

Production
The assembly plants collectively produced 55,775 vehicles in October, compared to 51,789 vehicles in the same month in 2018. The increase was largely in the passenger vehicle segment while the commercial vehicle segment declined.

Cumulative production for 10 months was 481,816 units which was 97% of the cumulative sales volume but this direct comparison may not be entirely accurate as there would be an overlap in stocks and imports. Popular models may leave the plants within days of being completed but there may also be vehicles which don’t move out so fast (although the plants would not want them around too long either as they take up parking space).

With two months left to the year and a forecast of 600,000 units for the year by the MAA, it means that sales in November and December must average 51,569 units. This year, 5 months have seen the TIV above 50,000 units and it’s often the case that there is such a big boost in December that the forecast is met.

New vehicle sales summary – 19.5% more deliveries in July 2019

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.

Perodua GST-free ad — One year ago, the market experienced an unusual condition as prices were lowered due to removal of GST, resulting in an unprecedented surge in sales. Therefore there is no point comparing the numbers in July this year with those in 2018.

♦ 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.

The Top 30 Bestsellers in Malaysia in the first half of 2018

It’s been a while since Malaysians have been able to see the new vehicle sales data by models. This is due to the Competition Act which came into effect in 2012 made the sharing and publication of sales data (specifically model sales data) an offence. The Act, among other things, is intended to prevent price-fixing. The Competition Commission also believes that sharing of data by car companies is ‘an act of collusion’ and could result in prices of parts going up.

The Malaysian Automotive Association (MAA), which had been compiling industry data since the 1960s and sharing it with its members as well as the public, appealed for exemption as the model sales data which is historical in nature was needed for businesses to understand trends in the market. However, the Competition Commission rejected the appeal and allowed only the sharing and publication of sales data by brand and segment (SUV, commercial vehicle, MPV, etc). Sales data by model can only be shared and distributed in the public domain after 12 months so in June 2019, we can see the data for June 2018.

While the data is one year out of date, it may still be of interest to some and certainly confirm claims of being ‘bestselling model in the segment’ which some companies make. Chips Yap, who has been doing such charts for the past 40+ years of his career, has compiled the Top 30 bestsellers in the country based on new vehicle sales data from January to June 2018. Remember, this is 2018 data so don’t ask why there is no Proton X70!

At this time, we’re not sure if we want to do this chart every month, quarterly or in another 6 months when we can see the bestsellers for the whole of 2018. Your comments will guide us in making the decision.

*While the Perodua Myvi is the nation’s bestselling car, the Bezza and Axia are more popular in Sabah and Sarawak, respectively.*

*Bestselling hybrid – Nissan Serena S-HYBRID*

The East Malaysian markets have been ‘Hilux Territory’ for decades and the model was ranked No. 4 in sales in Sarawak and Sabah. It is also the bestselling pick-up truck nationwide, ranked at No.9 for the first 6 months of 2018.

*Bestselling German model – the Mercedes-Benz C-Class*

The Malaysian Market from January – June 2019: Facts, figures and charts

♦ The Total Industry Volume (TIV) of new vehicles in the Malaysian market registered was 296,334 units, 2.3% or 6,735 units more than January – June 2018.

*All charts provided by the Malaysian Automotive Association (MAA)*

♦ The 2019 TIV was made up of 270,875 passenger vehicles (excluding pick-ups) and 25,459 commercial vehicles (including pick-ups). The volume of commercial vehicles in 2019 was 11.2% (3,217 units) lower than for the same period in 2018. All segments of the commercial vehicle category showed declines which has been attributed to economic uncertainties. As a result, businesses have deferred or scaled down their vehicle purchases or replacements.

♦ New vehicle registrations in May 2019 totalled 60,780 units, the highest monthly TIV of the year. Compared to the same month in 2018, it was 41.4% higher.

♦ The lowest TIV this year was reported in February with 39,838 units registered. This was not unusual for the short month and 1.8% lower than what was reported in the same month in 2018.

SALES BY SEGMENTS
♦ By segments, passenger cars accounted for 67% of the TIV with 4WDs/SUVs taking the second largest volume at 24.4% and MPVs falling to 8%. While the volume of passenger cars was lower by 4.8% compared to the same period in 2018, the volume of MPVs was significantly reduced in 2019 by 32.6% as more people chose 4WDs/SUVs.

*A flood of new SUV models, especially smaller ones, has seen this segment overtaking MPVs.*

♦ Pick-ups continued to make up the largest proportion of sales in the commercial vehicle segment with 16,565 units registered in the first 6 months of 2019. However, this volume was lower than that in 2018 by 14.7%, likely to be reflective of the draw of SUVs for people wanting dual-purpose vehicles.

PRODUCTION
♦ From the 29 vehicle-producing factories around the country, the total output in the first 6 months of 2019 was 285,028 vehicles. This number comprised 266,765 passenger vehicles (excluding pick-ups) and 18,263 commercial vehicles (including pick-ups). The total volume was 1.5% higher than for the same period in 2018 but only passenger vehicles registered an increase (2.1%).

♦ The MAA does not track exports of vehicles from Malaysian plants though the number is not exceptionally large. However, it is known that the Mazda CX-5 is exported in the biggest volume. It is assembled at a dedicated facility within the Inokom manufacturing complex in Kulim, Kedah, which Mazda and its local business partner, Bermaz Motor, spent around RM187 million to set up.

*Mazda has been exporting the CX-5 model assembled in Malaysia since 2013.*

FORECAST
♦ Although Malaysia’s economy expected to grow between 4.3% to 4.8% during 2019, the MAA believes that consumers and businesses will remain cautious in spending as economic uncertainties are likely to continue through the second half of the year. Therefore, the TIV that was forecast as 600,000 units at the beginning of 2019 will be maintained. As it is, the cumulative TIV for the first half of the year has reached almost half that number.

To become a member of the Malaysian Automotive Association, visit www.maa.org.my .

Piston.my