Total Industry Volume Archives

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 .

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