Auto sales in January drops
Sales of new vehicles has dipped this year as vehicle assembly and production lines are impacted by the Covid-19 pandemic and Movement Control Order (MCO), said Auto Traders Association of Sabah president Chok Yun Kiong.
He said auto sales in January had dropped 20 to 30 percent compared to the same month last year.
Since October last year, he said production of vehicles across the board had decreased by 40 to 50 percent.
“Car dealers are unable to secure new vehicles even when there is demand from customers.”
Chok expected the shortage in the supply of new vehicles would persist throughout the first quarter this year and whether the issue could be resolved would depend on the Covid-19 situation in Malaysia in the next quarter.
He said the automotive market in Sabah last year, which had gone through different phases of the MCO, was doing so-so overall.
Although sales of new vehicles last year had dropped 20 to 25 percent, he said the government’s move to implement a moratorium on car loan repayments had cushioned the impact of the Covid19 pandemic on the automotive market.
“However, the sales of new vehicles has been performing poorly since January 1 this year,” he said.
Chok explained that the Covid19 pandemic and implementation of the MCO has affected the operations of car assembly and production lines.
“Customers who purchase new car are forced to wait because car dealers are unable to acquire the vehicles.”
For instance, he said the manufacturer could only supply dealers with four to six cars out of the 10 units they ordered.
“Disruption in the supply chain will have an impact on every process down the line.”
He said new vehicles that were locally assembled of various brands were experiencing a 40 to 50 percent drop in supply.
Chok added the reduction in supply since October last year might persist until the end of the first quarter this year.
“The situation a er this depends on the Covid-19 pandemic and whether the government continues to implement the MCO,” he said.
He added that it was hard to speculate the outlook of the automotive market of new vehicles this year.
“The market is weak due to the Covid-19 pandemic. Consumers have become more prudent in their spending.”