A report in the Nikkei Asian Review (NAR) attributed this to persistent tepid consumer sentiment and a weak ringgit.

Total industry volume fell 14 per cent to 47,879 units in October from 55,788 units during the same month last year, according to data from the Malaysian Automotive Association.

On a month-on-month basis, sales slipped 0.6 per cent from 48,191 units in September.

Year-to-date, sales plunged 14 per cent to 466,208 units in October, according to the NAR report.

“Sales volume for November is expected to be slightly better than October” as car companies continued to roll out aggressive marketing campaigns, the MAA said.

The NAR report said the MAA, which represents over a dozen of manufacturers, importers and retailers, might miss its own annual sales forecast of 580,000 units despite a slew of aggressive marketing campaigns.

Malaysians have been cutting back on purchases of big-ticket items, such as vehicles and real estate, due to sluggish economic growth and an increasing cost of living.

“Entering 2017, the sector is expected to continue being undermined by the on-going weak consumer sentiment as well as weakening of the ringgit,” NAR quoted Hong Leong Investment Bank analyst Daniel Wong as saying.

Automotive companies in Malaysia have been facing margin pressure as cost of foreign vehicles and imported components have risen with a declining ringgit.

This month alone, said the NAR report, the ringgit tumbled more than 5 per cent against the US dollar.
“More aggressive promotions driven by stiff competition coupled with high input costs due to the prolonged ringgit weakness against major currencies will continue to crimp margins,” said UOB Kay Hian’s analyst Fong Kah Yan.