Second quarter starts with drop in new vehicle sales

After the strong sales in March, it was only to be expected that April would be less impressive.

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The start of the second quarter of the year saw new vehicle sales dip 8.8% from the month before to 49,964 units for April’s Total Industry Volume (TIV). The volume was, however, 6% higher than that reported in the same month in 2018.

Source: Monthly reports from the Malaysian Automotive Association

The Malaysian Automotive Association (MAA), which has been compiling industry data since the 1960s, explained that this was due to the big push in March, which had seen the highest TIV of 2019. Those companies which had their financial year ending on March 31 had put in one last effort to get the best numbers to report to shareholders so registrations were high. As a result, the market was ‘drained’ of buyers for April, which is a common situation in the industry.

The other factor was that many people shopping for new cars would know that with the Hari Raya festive period coming in May, there would surely be special offers which would save them money or get them complimentary extras like accessories or free service. This would have made them delay their purchases so May could well be a much better month.

The X70 SUV and new Iriz and Persona should boost new vehicle sales in May

Proton sales get stronger
The May TIV could also be boosted by the continued growth in Proton’s sales volumes. The X70 SUV has already made an impact and while the Competition Commission will take action against companies if they reveal how many units of each model are sold, from the MAA’s summary for the month of March, it was evident that Proton was No.1 in the SUV segment with almost 3,000 units sold.

In fact, pending the MAA’s release of sales data by brand next week, Proton already announced that it had returned to second position overall in the marketplace in April. This is the first time the company has reached this position in 3 years and it is aiming to end 2019 in that position as well.

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