As the car industry heads towards the end of another year, the big push to clear stocks has been underway since the final quarter began in October. Those companies that were lucky to forecast their sales numbers correctly would be under less pressure but there will also be those which have, for various reasons, found that they may still have more stock than there should be by this time of the year. So sacrificing profits by spending money on attractive deals like rebates and other incentives is necessary.
This is obviously what customers want and the many great deals available have persuaded them to buy before the year ends, boosting the Total Industry Volume (TIV) for another month by 4.6%. During October, 47,041 new vehicles (including commercial vehicles) were delivered around the country and in November, the figure rose to 49,184 units.
The November volume for passenger vehicles (excluding pick-ups which are classified under commercial vehicles) was 43,152 units, slightly lower than what it was in November a year ago. Commercial vehicle sales were higher though – 6,032 units in 2017 compared to 5,535 units in 2016. Production volumes, though higher compared to the output in October, were significantly lower compared to the same month a year ago.
As for the cumulative TIV after 11 months, the sales volume reached 521,907 units, 6,655 units more than what it was for the same period in 2016. The cumulative production volume has, however, been lower – by the end of November, 463,993 vehicles were produced from all the plants in Malaysia whereas for the same period in 2016, 497,418 vehicles had been produced. Of course, the lower number this year could be the cautious approach taken by the companies in anticipation of a smaller market size this year.
The Malaysian Automotive Association (MAA) set a target of 590,000 units for 2017 and having reached 521,907 units, December sales must be 68,093 units to reach that target. It seems impossible when there has not been even one month this year when the TIV was more than 52,000 units. But then again, it was the same for 2016 and then when the December sales were totalled up, there was a huge leap from 49,094 units in November to 64,822 units in December – the highest for the whole year. Will the same thing happen again?