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Malaysian Vehicle Sales Drop Almost 100% In April

Malaysian Vehicle Sales Drop Almost 100% In April

Anne Dorall

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Vehicle sales data for the month of April 2020 released by the Malaysian Automotive Association (MAA) showed that all new vehicular activity hit a figurative roadblock.

The month of April saw that there were only 141 new units registered, a 99.37% decrease from 22,478 units in March. Even then, the total number of vehicles registered in March were already 44% lower than February.

The Road Transport Department (JPJ) has been closed since the Movement Control Order (MCO) started back in 18 March 2020. Naturally, this means that any registration, transfer, or documentation needed for vehicles was put in limbo.

The aforementioned 141 new registrations were registered online with pre-approved car loans and a Letter or Undertaking (LoU), which allowed registrations to be completed to prevent a lapse in agreement.

The good news is that the JPJ offices were reopened since 13 May, during the Conditional Movement Control Order (CMCO), so registering for new vehicles can proceed as normal.

However, it is unlikely that vehicle sales volume in May can compare to numbers pre-Covid-19. Consumers are averse to making such large purchases during a time of uncertainty and oncoming recession. Even banks have become more stringent in approving hire purchase loans for vehicles.

As a result, automotive showrooms have reported extremely slow foot traffic.

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