Since July 2023, dealers across Malaysia have shared their concern that order taking for new cars has slowed down considerably. This is despite the fact that data compiled by the Malaysia Automotive Association showed that August and October were among its best ever months this year. However, those figures are fulfillment of orders made months earlier, and are not a reliable indicator of present demand.

RHB Research is projecting a sharp 14 percent decrease in 2024’s total industry volume – the industry’s indicator for total new car sales – down from the forecasted 725,000 units (which is likely to be well overachieved) for this year, to 625,000 units.

Last two years’ sales performance have been artificially boosted by post-Covid economic stimulus measures, which waived sales tax for locally assembled passenger cars. It resulted in many buyers bringing forward their purchases.

Thus, 2024 will be a year where the market corrects itself, and November’s sales of 71,908 units were 4 percent lower than the previous month, following a 6 percent drop from September’s 68,156 units.

November saw nearly all major brands reporting a drop in sales, despite this being a seasonally strong month as dealers make a last push to hit their annual sales target.

Proton dropped 2.5 percent (11,882 units), Perodua dropped 5.3 percent (32,052 units), Toyota (including Lexus) dropped 6.1 percent (10,263 units), while Mazda’s 12.5 percent drop (1,534 units).

Only Honda bucked the trend with a 10 percent increase, registering 8,043 units, which is 23 percent higher than the same month in 2022. Year-to-date, Honda Malaysia’s cumulative sales stand at 72,591 units, and is on track to hit its 80,000 units target for this year.

This was despite that Honda not having any CR-V to sell that month, as it was phasing in a new-generation model that was only launched on 14-December.