KUALA LUMPUR (July 16): The Malaysian Automotive Association (MAA) raised its car sales forecast for this year by 3.38% following strong sales in the first half of the year.

Total industry volume (TIV) is expected to come in at 765,000 units compared with the 740,000 units projected at the start of the year, MAA said in a statement. The trade body represents more than a dozen domestic and foreign brands, assemblers, distributors and retailers.

The revision takes into account resilient domestic economy, steady interest rate, and “healthy backlog orders especially in the A segment passenger cars market”, the MAA said. There are also new players and more new model launches, it said.

Further, “continuation of aggressive promotional strategies and providing value-added services and more options” will lead to improved demand, the MAA said.

New vehicle registration in the first half of 2024 (1H2024) rose 6.6% to 390,296 units from 366,176 units over the same period in 2023. The increase is mainly due to the strong showing by the passenger cars subsegment which contributed the biggest volume increase, MAA noted.

The combined market share of national car makers Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd expanded to 62%, or 241,937 units in 1H2024 compared with 60.3% or 220,702 units in 1H2023, MAA data showed.

Non-national marques also registered a higher sales volume of 148,360 units, rising 2% compared with 145,474 units for 1H2023, the association added.

Total production volume in 1H2024 meanwhile increased 8.1% to reach a total of 392,052 units compared to 362,535 units in the same period last year, boosted by a surge in demand for new vehicles.

For June alone, Malaysia's new vehicle sales fell 7.3% year-on-year (y-o-y) to 58,046 units, from 62,601 a year ago. On a month-on-month basis, TIV also recorded 17.2% lower, compared with 70,130 units in May.

In the nearer term, MAA expects vehicle sales in July 2024 to be maintained at the June 2024 level without elaborating further.