The Malaysian Automotive Association (MAA) posts the TIV report for September 2023.
In September 2023, the local automotive industry experienced a decline in new motor vehicle sales, with the Total Industry Volume (TIV) dropping to 68,156 units, a 6.4% decrease from the previous month, August 2023, which had seen 72,809 units sold. This dip in sales can be attributed to various factors, primarily consumers adopting a “wait and see” approach in anticipation of incentives to be announced in the National Budget 2024. While the September figures may raise concerns, it is essential to put them into context and consider the bigger picture.
The Impact of Consumer Behavior
The primary reason for the decline in new vehicle sales in September 2023 can be linked to consumer behavior. Many potential car buyers chose to hold off on their purchases, expecting the government to introduce incentives in the upcoming National Budget 2024. This “wait and see” attitude is a common trend in the automotive industry whenever significant policy changes are on the horizon. Consumers often delay their purchases in hopes of benefiting from these incentives, whether they involve tax breaks, rebates, or other financial advantages.
Positive Year-to-Date Performance
While the drop in sales for September 2023 is concerning, it’s crucial to consider the year-to-date (YTD) performance of the local automotive industry. The total vehicle registration for YTD September 2023 stood at 571,767 units, which is 11% higher compared to the same period in 2022 when it was 514,449 units. This indicates that, despite the recent dip in sales, the industry has shown overall growth when viewed in a broader time frame.
Steady Production Levels
In terms of production, the local automotive industry demonstrated resilience in September 2023. The Total Industry Production for that month reached 69,133 units, a slight increase from the 67,912 units produced in August 2023. This steady production is a positive sign, indicating that manufacturers are maintaining output levels despite fluctuations in demand. It’s also an indicator of the industry’s adaptability to market conditions.
What to Expect in October 2023
According to the MAA, October 2023 is expected to mirror the sales figures of September 2023. This projection aligns with the “wait and see” attitude that consumers have adopted, as many will likely continue to postpone their purchases in anticipation of potential incentives. However, as the National Budget 2024 is unveiled and its implications become clear, consumer confidence may return, leading to a potential rebound in sales in the coming months.
