How severely have vehicle sales been impacted since June 2021?

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Vehicle Sales Significantly Impacted Since June 2021

Motor vehicle sales and production have been severely hampered since June 1, 2021, primarily due to the closure of production plants, distribution centres, and sales centres, particularly in the Klang Valley. This disruption led to drastically reduced sales figures, with only 1,921 units sold in June 2021 and 7,086 units in July 2021, a stark contrast to the typical monthly average of 45,000 to 50,000 units. The total industry production also plummeted to 276 units in June and 2,775 units in July, far below the usual monthly production of 40,000 to 50,000 units.
Drastic Drop in Monthly Sales Figures

The Malaysian automotive market experienced an unprecedented decline in sales volume following the implementation of movement restrictions. In June 2021, sales reached a mere 1,921 units, and while there was a slight recovery in July 2021 to 7,086 units, these figures remain significantly below the pre-disruption levels. Typically, the Total Industry Volume (TIV) hovers between 45,000 and 50,000 units per month, highlighting the severe impact of the operational halts.
Collapse in Vehicle Production

Concurrently, vehicle production also suffered immensely. In June 2021, total industry production stood at only 276 units, and in July 2021, it rose to 2,775 units. These numbers are a fraction of the usual monthly production, which normally ranges between 40,000 and 50,000 units. This drastic reduction in output directly correlates with the inability of manufacturing facilities to operate.
Severe Financial Strain on Dealerships

The consequences of these reduced sales and production have been particularly harsh for car dealers, especially smaller businesses. Many are facing critical cash flow problems and struggling to retain their employees, including sales advisors. With approximately 1,300 dealers nationwide under the Malaysian Automotive Association (MAA) membership, this situation poses a significant threat to the broader automotive retail network.
Substantial Financial Losses Incurred

The financial repercussions have been substantial, with total losses exceeding RM14 billion from domestic vehicle sales alone over the two-month period of June and July 2021. Beyond domestic sales, MAA members have also faced considerable revenue losses from the export of vehicles and components, as well as from the local sale of spare parts, indicating a widespread and significant economic downturn for the sector.

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How severely have vehicle sales been impacted since June 2021?

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