Malaysia’s new car sales could hit a record 750k units this year, but anticipated to dip under 700k in 2024
New car sales in Malaysia may be on course to meet – and even surpass – the 725,000-unit total industry volume (TIV) that was forecast for 2023, but things aren’t expected to be as rosy next year.
Based on the year-to-date numbers in the first nine months of the year, the TIV this year is expected to easily meet the target and could reach the 750,000 unit mark. With three months to go, the TIV stands at 571,767 units, and all that is needed is for sales to achieve 60k units a month in the remaining quarter to get the TIV to the 750k mark.
Whatever the final figure may be, it is expected to surpass the current record of 720,658 units sold in 2022, the first time the country’s TIV breached the 700,000-unit mark.
However, the strong performance this year has been largely supported by high industry order backlogs of over 200,000 units, and a couple of research houses have indicated that they expect the TIV to drop in 2024, as The Edge and New Straits Times reports.
TA Securities said car sales could fall to 650,000 units in 2024 following the strong showing this year. The research house said it expected stiffer competition and competitive pricing in 2024. “Carmakers may need to offer discounts to attract budget-conscious customers,” it said in a note published today.
Hong Leong Investment Bank (HLIB) Research shared the same sentiment, saying it expects the TIV to drop after the high backlog orders of 200,000 units have been delivered.
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