According to the association’s monthly update, it expects better sales this month driven by the sales tax exemption incentive from the government, due to expire at end-June, coupled with an aggressive sales push from car companies.

Nonetheless, it noted that the shortage of chips and components, and the supply chain disruptions will continue to affect some models.

On a month-on-month basis, the TIV fell 12% compared to 56,213 units reported in April 2022 due to a short working month from the Hari Raya festive holidays and the effects of the continued chips and components shortage, and logistics delay disruptions.

In May, Malaysia’s vehicle production rose 16% year-on-year to 49,154 units compared to 42,536 units.

In the first five months of the year, TIV stood at 265,656 units, a 7% year-on-year improvement from 247,250 units reported in the same period of the previous year while production for the period rose 7% to 258,048 units from 241,012 previously.