TIV Archives

How The Malaysian new vehicle market did in 2019

♦ The Total Industry Volume (TIV) in 2019 was 604,287 units, the first time that the volume of sales crossed the 600,000 level since 2015. The achievement was helped by a boost in December with total sales of 54,842 units, the second highest monthly volume in 2019.

♦ While sales of passenger vehicles rose by 3.2% compared to the year before, the opposite was the case for the commercial vehicle segment (which includes pick-up trucks) as it saw a decline of 17.4%. The uncertainty of the fate of major projects in the first half of the year as well as a general slowdown of the economy had companies holding back on capital expenditures.

♦ Sales of 4WDs and SUVs grew noticeably (8.4%) at the expense of passenger car and MPV segments, the former contracting by 3.9% and the latter by 4.5%. Nevertheless, passenger cars (sedans and hatchbacks) still accounted for the largest share of passenger vehicle sales (69.4%), while 4WDs/SUVs had a 22.6% share.

♦ Sales of pick-ups, once a popular segment, fell significantly from 44,443 units in 2018 to 35,121 units in 2019, a reduction of 21%. Nevertheless, these vehicles – which are used for personal transport as well as for business purposes – accounted for almost 65% of commercial vehicle sales.

♦ Local production of vehicles totaled 571,632 units in 2019, a modest 1.2% increase over the output in 2018. While more passenger vehicles were produced (+2.6%), the plants cut back on production of commercial vehicles by 15.6% in the light of uncertain demand.

From 2020 to 2024
♦ Looking ahead, the Malaysian Automotive Association (MAA) does not expect the market to grow substantially in 2020 and has forecast a TIV of 607,000 units, just 0.5% more than the 2019 figure. As in the past, this will be reviewed after the first 6 months of sales.

♦ Looking further ahead for the period from 2021 to 2024, the MAA sees the market improving a bit and forecasts annual TIV growth of 2% to 2.3%, reaching 660,920 units by the end of 2024. With sales in Indonesia and Thailand currently around 300,000 units greater, Malaysia will remain at No.3 position in ASEAN.

Finance Ministry gives firm assurance that new reporting methodology will not increase vehicle prices during 2020

November new vehicle sales down by 2.4%

New vehicle sales in the month of November declined by 2.4% or 1,286 units, bringing the Total Industry Volume for the month to 52,584 units of passenger and commercial vehicles. By segment, passenger vehicles accounted for 47,754 units (91%) of the month’s TIV with the remainder being commercial vehicles (including pick-up trucks).

Compared to the same month in 2018 when the market was still in a state of ‘fatigue’ after the surge during the 3 months of GST-free sales, it was to be expected that the figures in 2019 would be higher, with 4,302 units more sold in 2019. A larger volume of passenger vehicles (10% compared to 2018) was sold but commercial vehicles were actually 2% lower.

November 2019 — *Source: Monthly reports of the Malaysian Automotive Association (MAA)*

As for the TIV for the year to date, ie 11 months, the cumulative volume has reached almost the same level. From January to November, the TIV was 549,445 units which was just 965 units less than for the same period in 2018.

The output of locally-produced vehicles was lower than in November 2018, probably as companies started preparing to scale down stocks with the year coming to an end. 46,517 vehicles were produced, about 8% less than in 2018.

However, the cumulative TIV for 11 months shows that 2019 saw a higher output of 528,333 units where in 2018, the output during the same period was 522,572 units. Passenger vehicles accounted for the boost in numbers but commercial vehicles declined.

One month remains and in order to achieve the forecast of 600,000 units for the year by the MAA, 50,555 units would have to be registered in December. This is likely to be possible, with some extra added, as companies will be pushing hard to clear stocks and offer special deals in sales promotions. Many will also be closing their financial year and will want to be able to report the highest numbers to shareholders.

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.

Proton sales grow 46% in spite of market contracting by 1.3% this year

News from Proton has been good all year long, with upbeat press releases arriving at our mailboxes every month. And as the end of the year approaches, the carmaker reports that its cumulative sales volume (including export deliveries) is almost at 80,000 units (79,833 to be exact) after 10 months. This represents a growth rate of 46% in a market where the Total Industry Volume (TIV) has decreased by 1.3% to date.

Pending official industry data from the Malaysian Automotive Association (MAA), Proton estimates its market share to be 16%, which is 5.2% higher than the previous year. It has strengthened its hold on second place in the overall sales chart and is confident of maintaining this position to the end of 2019.

While sales of the X70 SUV have contributed to Proton’s upswing – over 24,000 units have been delivered so far – the Saga has also drawn a huge number of customers since being launched in August. Over 28,000 bookings have been received and in October, the new model posted its highest sales figure for over four years. 4,273 units were sold last month and for the first 10 months of the year, the cumulative total is 30,331 units, which is a 26% increase over the previous year.

“We are humbled by the response our products have received from Malaysian car buyers. In the space of just 8 months, we launched our first SUV and updated all our other models, giving Proton the youngest model range for any car brand in Malaysia. The hard work has paid off with increased sales and we are now confident of being able to sell 100,000 units this year, providing us with a solid base to move forward in 2020 and beyond,” said Dr Li Chunrong, Chief Executive Officer of Proton.

Dr. Li said the company is matching the commitment of its dealers by continuing to invest in training programmes for sales and service staff to ensure the level of service delivered matches the premium image the brand aspires to. “As we grow the number of 3S/4S outlets, we can then deliver an improved brand experience to more Malaysian car buyers. Proton will continue to focus on improving customer service levels as we know it is one of the keys to building long-term brand loyalty,” he added.

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September New vehicle sales summary – Total Industry Volume down by 13%

KEY POINTS:

♦ The Total Industry Volume (TIV) for the month declined by 13% or 6,482 units month-on-month compared to the TIV for August.

♦ The decline in sales was attributed to many holidays and also the belief by some consumers that Budget 2020 would have something which would reduce new car prices. However, it should be apparent that for some time now, changes affecting the auto industry are not announced during the Budget presentation (as they were in the 1990s and before).

♦ The TIV in September 2019 was 43% higher than in the same month in 2018 because, a year ago, the GST-free period had ended and sales slowed down substantially. 40,266 passenger vehicles (excluding pick-up trucks) were registered in September 2019 compared to 27,018 vehicles in September 2018.

♦ However, for commercial vehicles, the difference was small – 4,400 vehicles in 2019 against 4,222 in 2018.

♦ Going into the fourth and final quarter of the year, October sales are expected to improve and sales promotions start kicking in to start clearing stock before the year ends.

♦ The cumulative sales volume after 9 months has reached 442,991 units, 3% lower than for the same period in 2018. The MAA has forecast 600,000 units for 2019 so the remaining volume is 157,009 units. With 3 months to go, that means 52,336 units must be delivered during each of the month.

♦ Cumulative production, however, was higher in 2018 for the first 9 months with 426,041 units leaving local plants. For the same period in 2018, the total number was 420,498 units. To see what vehicles each plant produced this here, click here.

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New Vehicle Sales Summary – only marginal sales increase in August

Key Points:

♦ The Total Industry Volume (TIV) rose marginally by 1% or 295 units month-on-month compared to the TIV for July.

♦ 46,802 passenger vehicles were registered during August, but this number does not include pick-up trucks which are classified under commercial vehicles.

♦ The same month in 2018 saw a significantly higher TIV due to the surge in sales as a result of no GST being charged. 65,550 vehicles were registered in August 2018, 22% higher than the TIV for August in 2019.

SALES TREND — *Source: Monthly reports of Malaysian Automotive Association*

♦ Cumulative sales from January to August 2019 reached 398,335 units but during the same period in 2019, it was 423,615 units (6% higher).

♦ Production-wise though the gap is closed – 380,940 units for the first 8 months of this year versus 383,498 units in 2018.

♦ The Malaysian Automotive Association (MAA) expects the TIV for September to be similar to that of August due to the number of holidays reducing the selling days available. The severe haze may also distract people from thinking about buying new cars at this time.

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 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 .

Perodua Sells 17,900 Vehicles in January 2018 Alone!

Yes, you read that headline right. In January 2018 alone, Perodua recorded 17,900 sales, its second highest-ever monthly market share of above 40%, against a total industry volume (TIV) of 43,930 units (Perodua recorded its highest ever monthly sales in August 2016 at 40.5%. Source: Carlist)

In January, all Perodua models retained their lead in their respective vehicle segments in Malaysia, with 9,029 Myvis, 4,085 Axias, 2,776 Bezzas and 1,803 Alzas sold.

“While we defer to the Malaysian Automotive Association (MAA)’s numbers, we are cautiously optimistic that for January 2018, our monthly market share is the highest ever in our history. This was spurred by deliveries of the new Myvi, as well as continued strong demand for our other models,” said Perodua President and Chief Executive Officer Datuk (Dr) Aminar Rashid Salleh at the company’s Chinese New Year Luncheon with the media and business partners here today.

“The new Myvi has racked up over 48,000 bookings to date, the 18,000th unit of which today we proudly deliver to Mr Wong Wai Cheng of Negeri Sembilan. We would also like to add that close to 20,000 units of the new Myvi have been delivered to date. Overall, over a million Myvis have been registered in Malaysia since 2005. This performance has been a great boost to the Malaysian automotive ecosystem as the better-than-expected demand for our latest offering as well as our current model line-up have resulted in better demand for local parts,” he added.

Aminar also said that Perodua is looking to purchase more than RM5 billion in components and parts this year from mainly local vendors. This will further contribute towards the growth of the Malaysian economy. All Perodua models have over 90% local content.

“To all Malaysians, we simply cannot thank you enough for your love and support for our humble hatchback through all these years. Your recognition spurs us on to work harder on bettering our products and services, because as always, You Matter Most,” he said.

“To those who have placed orders for the new Myvi and have yet to receive their cars, we sincerely apologise for the wait. Rest assured that we are ramping up production to get the cars to you as quickly as we can. The Perodua Manufacturing Sdn Bhd plant will continue to work overtime until demand stabilises,” he continued.

Mr Wong, 25, was all smiles as Perodua Sales Sdn Bhd Managing Director Dato’ Dr Zahari Husin handed him the keys to his brand-new Lava Red Myvi 1.5 Advance.

“I am over the moon to be taking delivery of my new car. The minute I laid eyes on the new Myvi and saw how many sophisticated features I was getting for the price, I knew it was the vehicle for me,” said Mr Wong. “I’m always on the go. The Myvi’s compact dimensions make it very easy to park and manoeuvre, but it’s also very spacious inside. With six airbags and Advanced Safety Assist, I am well protected, and the built-in toll card reader is my favourite feature!” he added.

“We wish all our Chinese friends Xin Nian Kuai Le and Gong Xi Fa Cai. May the Year of the Dog bring more luck, prosperity and happiness to us all!” Datuk (Dr) Aminar concluded.

Main top image: Perodua President and Chief Executive Officer Datuk (Dr) Aminar Rashid Salleh and Perodua Sales Sdn Bhd Managing Director Dato’ Dr Zahari Husin present a mock key to the 18,000th new Perodua Myvi owner, Mr Wong Wai Cheng, 25, of Negeri Sembilan.

Piston.my

TIV

How The Malaysian new vehicle market did in 2019

November new vehicle sales down by 2.4%

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

September New vehicle sales summary – Total Industry Volume down by 13%

New Vehicle Sales Summary – only marginal sales increase in August

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

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

How The Malaysian new vehicle market did in 2019

November new vehicle sales down by 2.4%

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

September New vehicle sales summary – Total Industry Volume down by 13%

New Vehicle Sales Summary – only marginal sales increase in August

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

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

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