October brought some cheer to the industry with an increase in the Total Industry Volume (TIV) of new vehicles registered. Compared to the month before when there were many holidays so the selling days were less, October’s TIV was 14.9% higher, or 6.085 units more.
When comparing to the same month in 2016, the TIV was lower for this year. In October last year, the volume was 839 units higher. However, the upswing has taken cumulative volume for this year to 472,273 units which is 1% higher than for the same 10-month period in 2016.
The increase in new vehicles sold was also mirrored in the output from the assembly plants. In September, 38,213 vehicles were produced in total by all the plants while October production was higher by almost 6% with 40,464 vehicles produced. Of this number, 36,632 units were passenger vehicles (excluding pick-up trucks).
For the month of November, the Malaysian Automotive Association (MAA) believes that a higher TIV is possible. During this final quarter of the year, the companies will be making a big push to move their remaining stocks and meet their targets for the year. So there will be many promotions and behind-the-scenes discounting to draw buyers, which will boost the TIV.
There are a few new models to be launched too but they are not likely to make a big difference to the overall numbers. Furthermore, even if they are very appealing, many customers might opt to wait a while and have their registered in the new year.
The all-new Perodua Myvi which has just been launched and it will surely register lots of sales. As it is, even before launch, the company had 5,000 bookings and the number will quickly increase, as is typical for every new model Perodua has launched. However, the boost that the new model can contribute to the TIV may not be as great as presumed since it is replacing an existing model. So, at best, there may be slightly higher Myvi sales as more may be sold than the average monthly figure prior to November. Perodua expects to sell around 6,000 units a month of the new Myvi.
With two months to go and the cumulative TIV of sales at 473,723 units, it means that November and December volumes must each be 58,139 units. If November is less than that figure, then December will need to be very high. But don’t rule out that possibility since, in 2016, December sales spiked with almost 65,000 units registered. It was the highest TIV of the year; other than two months when the volumes went past 50,000 units, the other months were less than that level with February below 40,000 units.