KUALA LUMPUR (May 18): Auto sales fell 19.13% year-on-year in April to 46,583 units against 57,606 units a year ago, after five consecutive months of growth, according to the Malaysian Automotive Association (MAA).

However, the association forecasts that there will be slight recovery in vehicle sales in May, due to the easing supply chain issues and much longer working month.

In a statement, the association said sales were also down on a month-on-month (m-o-m) basis. The total industry volume (TIV) in April 2023 receded by 41% after the industry's all-time high of 78,849 units in March 2023.

“The much lower TIV of April 2023 was due to the ending of Penjana sales tax exemption scheme and a much shorter working month given the festive Hari Raya Aidilfitri holidays,” said MAA.

The exemption was introduced as part of the Penjana stimulus package to mitigate the effects of the first Covid-19 Movement Control Order, which came into effect in March 2020.

Originally scheduled to end on Dec 31, 2020, the sales and service tax (SST) exemption has been extended thrice — first to June 30, 2021, and then to Dec 31, 2021, with the latest extension to June 30, 2022. While the SST exemption deadline remains June 30, 2022, car buyers who booked on or before the deadline can still enjoy the SST exemption as long as they registered the new cars before March 31, 2023.

Nonetheless, the overall total vehicle registration for year to date (YTD) came in higher at 239,183 units, up 10% compared with 217,452 units in the previous year’s corresponding period.

Meanwhile, MAA said lower production was recorded in April this year with 41,160 units, falling 24.8% y-o-y against 54,734 units in April 2022.

On a m-o-m basis, the production dropped nearly 46% from 76,069 units recorded in March 2023.

Still, YTD production volume showed an increase of 1.15% to 239,554 units, compared with 208,894 units in the corresponding period last year.