PETALING JAYA: The Malaysian Automotive Association (MAA) has revised its total industry volume (TIV) for this year to 670,000 from 680,000 units earlier, owing to declining vehicle sales in the first half of this year.
According to MAA, sales from the start of the year to June fell to 322,184 from 333,156 units in the previous corresponding period, mainly due to subdued business optimism and moderation in consumer spending as a result of the economic uncertainties and increased cost of living.
MAA president Datuk Aishah Ahmad said on Tuesday that stringent lending practices, especially for hire-purchase loans, also had an impact on vehicle sales.
"We believe the second half of the year is going to be a much more challenging one for the local economy as well as the automotive sector," she said at a press conference.
Vehicle sales in June slipped to 57,437 from 58,561 units in the previous corresponding period. Sales in June was, however, higher by 6,183 units compared with May, due the rush for deliveries in conjunction with Hari Raya.
Sales volume for July is expected to be maintained at last month's level.