New vehicle sales in November continue upward trend

New vehicle sales for the month of November continued on a gentle upward trend, with the Total Industry Volume (TIV) for the month finishing at 48,282 units. This was 2% higher than the TIV for October but compared to the same month in 2017, it was 1.8% lower.

Source: Monthly reports of Malaysian Automotive Association

The continued high sales volume recorded was likely to be due to ongoing deliveries of vehicles booked earlier, especially for Perodua which had suspended production of the Myvi in August due to a supply issue with one item. Having resolved the problem, the output had to be stepped up to reduce the waiting time as there were still 22,000 outstanding orders at the end of September.

For most companies, the boom of June, July and August had been really an artificial one. Although they enjoyed high sales volumes during those months, their stocks were not significantly increased and in effect, all they were doing was selling in advance. There was no point in adding stocks since the boom was only going to last for 3 months and as expected, the TIV dropped drastically in September.

October saw the market ‘normalising’ with a 51% increase in TIV, and with November contributing 48,282 units, the cumulative TIV for 11 months reached 550,526 units. For the same period in 2017, it was 521,906 units or 5% lower.

The MAA has forecast the 2018 TIV to be 585,000 units which means December sales need to be about 35,000 units. That shouldn’t be difficult and if, as the Malaysian Automotive Association expects, the December numbers will be higher than November’s, then the year could close at the original forecast of 590,000 units which had been made by the association at the beginning of the year.

[Chips Yap]