It’s not really surprising that after the big push by the car companies in May and June for the Hari Raya festive season, new vehicle sales in July dipped. After many customers were persuaded to buy new vehicles in June, the market was a bit ‘fatigued’ by July.
And to make things worse, there was a technical problem with the e-dafter system at the JPJ. This delayed registration of new vehicles and was significant enough that it also impacted sales (the monthly reports issued by the Malaysian Automotive Association are based on registrations).
As a result, the Total Industry Volume (TIV) for July 2017 was 48,553 units, 3.4% lower than what was reported in June. However, the figure was 14% higher than what was achieved in July 2016 (42,483 units). Passenger vehicle sales were 16% greater than in 2016 when the total vehicle sold were 37,661 units.
On a cumulative basis, after 7 months, the TIV has reached 333,010 units and that’s 5% higher than for the same period in 2016. The cumulative TIV is still about 11,000 units lower than what it should be after 7 months if the forecasted 590,000 units is to be reached by year’s end. That’s actually widened the gap from last month when it was 10,539 units from what it should have been, assuming an average of 49,000 to 50,000 units each month.
A similar growth was also reported from the assembly plants which produced a combined total of 43,952 vehicles, of which 40,492 units were passenger vehicles. This number was 12% higher than for the month of July 2016. It suggests that much of the stock had been cleared in June and the plants had to start sending more vehicles out again as the second half of the year began.
The MAA expects August new vehicle sales to be slightly better and with the e-daftar problem fixed, vehicle registrations that were delayed can be completed. However, if a portion of the new vehicles registered in August are those that should have been registered in July, then the actual increase may not be much unless sales pick up substantially.