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Malaysian Vehicle Sales Recorded 50% Growth in April 2008
Jun 17, 2008

The Malaysia auto industry registered nearly 50% increase in sales during April 2008, thanks to growing demand, strong government support and easy financing regulations.

The Malaysian Automotive Association (MAA) said on May 22, 2008 that there was an almost 50% rise in Malaysian auto sales in April 2008 compared to April 2007 and there was a monthly growth of 8.3% compared to March 2008, as reported by thestaronline.

As per MAA, in April 2008, the total automobile sales in Malaysia were 50,279 Units, up from 33,679 Units recorded in April 2007. It was also an increase of 3,843 Units from March 2008. Moreover, the passenger car market in Malaysia registered sales of 45,723 units in April 2008 while the remaining 4,556 Units included commercial vehicles.

The main reason for the auto market growth in Malaysia was the high demand from buyers wishing to exchange their old automobiles along with favorable economic conditions and introduction of latest model versions across the majority of segments. The passenger car market in Malaysia witnessed a jump in vehicle sales in April 2008 due to improved buyer confidence ushered in by better incomes and improved lifestyles.

Moreover, the growth in automobile market of Malaysia can be accredited to the constructive measures adopted by the government to help the auto industry, like inexpensive loans extended by financial organizations to buyers. As majority of car sales in Malaysia are done via financing, customers faced no trouble in taking vehicle loans to purchase new cars.

Furthermore, MAA said that the car sales in Malaysia would carry on “to be positive” on “improved consumer confidence”. But industry analysts are concerned about the future prospects of the automobile market in the country. The latter half might witness low sales due to extraneous factors like rising oil prices and inflation. Moreover, consumers could assume a wait-and-watch outlook given the high cost of living.

According to a Research Analyst at RNCOS, “The automobile sector in Malaysia witnessed a rise in April 2008 because of improved buyer confidence and buying capacity. Seeing adverse industry conditions, the Malaysian auto dealers could sustain their auto sales in near future by creating more fuel-efficient models and without putting extra burden on the customers’ pocket.”

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