New vehicle sales in Malaysia posted an increase of 2.9% year on year (y/y) during October to 55,754 units, according to data released by the Malaysian Automotive Association (MAA). Of this total, passenger vehicle sales accounted for 49,063 units (up 3.2% y/y) and commercial vehicle (CV) sales 6,691 (up 0.7% y/y). Meanwhile, vehicle production surged 21.9% to 55,783 units during the month. Passenger vehicle output gained an impressive 23.9% y/y to 50,974 units, while CV production rose 3.9% y/y to 4,809 units. For the year to date (YTD), total industry sales total 541,142 units, marking a decline of 1% y/y. This total is split between passenger vehicle sales of 480,779 units (down 0.7% y/y) and CV sales of 60,363 units (down 3.1% y/y). In contrast, YTD vehicle production is in positive territory, up 4.3% y/y to 519,171 units. YTD output of passenger vehicles is up 4.6% to 476,965 units, while CV production is up 0.2% y/y to 42,206 units.
Significance: October's y/y sales gain, the third consecutive monthly increase since March this year, was mainly driven by incentive and discount activity in the festive season. October 2015 also had three extra working days than the same month of last year, which had a three-day festival holiday period. The October tally was up 9.1% on a month-on-month basis from September's volumes of 51,106 units. Meanwhile, after the government implemented a change in tax law during April several Malaysian automakers announced modest price reductions of 1–3%, which is also having a positive effect on sales. However, concerns continue over unfavourable currency exchange-rate fluctuations, which might force OEMs to raise car prices in the coming months. Leading automakers, including BMW, Honda, Mitsubishi, Perodua, and Toyota, have announced potential price hikes starting 2016. For the full year 2015, IHS Automotive expects total new vehicle sales to edge up 0.5% y/y to 670,629 units, while vehicle production is predicted to rise by 2.2% y/y to 609,191 units.
