Nearly 0 new cars are reportedly sold in Malaysia in June 2021

Ever since MCO 3.0 was enforced nationwide on 1-June 2021, it has affected multiple businesses including those in the automotive industry. As such car showrooms, which are deemed non-essential remained closed throughout the month.

Hence, the figures are looking very bleak as it is expected that new vehicle sales in Malaysia will be close to nil according to a report by Berita Harian. The local automotive industry is expected to lose RM 3.44 billion in June alone if the sales figures show an egg-shaped number.

Also read: MCO 3.0: A confusing Monday for car companies and dealers in Malaysia

Though online e-showroom services are heavily promoted and introduced by carmakers, issues facing with the documentation processes for loans and registration might be a factor to the net zero sales.

Also read: Shopping for a car online this FMCO? Here are some links for your weekend browsing

According to a survey conducted by Kenanga Research, it found that only a handful of units were registered through the Road Transport Department’s (JPJ) e-Daftar system for any vehicle sales that are approved through a Letter of Undertaking and Indemnity (LoU).

In a statement to the media outlet, Datuk Aishah Ahmad, the President of the Malaysia Automotive Association (MAA), has said that the cause for the net zero sales could also be caused by the chip shortage that has been affecting many manufacturers.

Also read: After MCO, chip supply shortage is slowing car production in Malaysia

This combined with the closure of showrooms could see another slump in automotive sales for the third month in a row. Sales in May dropped 19% to 46,663 units compared to 57,912 units a month earlier.

However, the first five months of 2021 (245,932 units) saw higher vehicle sales compared to the same period in 2020 (128,790 units).

In spite of the expected net zero sales for June, Kenanga Research speculates that a total of 545,000 units of new vehicles are expected to be sold throughout the year.

Another analyst, Mohd Shanaz Noor Azam from CGS-CIMB told the Malay daily that the automotive industry could see a 34% growth in 2021 and that sales will remain buoyant in the second half of the year. This is due to the SST exemptions and discounts on CKD and CBU passenger cars which is extended until 31-December 2021.

Also read: SST exemption/discount for CKD and CBU cars extended to 31-Dec 2021