Categories: World News

Malaysia’s vehicle sales fall in May due to shortage of chips

Malaysia’s total vehicle sales fell 11.76 percent from April to 49,603 in May due to a shortage of chips and components, according to the Malaysian Automotive Association (MAA).

The shortage of chips and components and logistics delay disruptions continue to affect some makes, the MAA said in a statement.

It also attributed the fall to a shorter working month due to the Hari Raya festival.

On a year-on-year basis, total vehicle sales in May rose 5.08 per cent, while that in the January-May period increased by 7.44 percent.

Meanwhile, total vehicle production in May climbed 15.56 percent year-on-year, and that in the January-May period went up 7.07 percent.

The MAA expects sales in June to be stronger, driven by impetus from sales tax exemption incentive for consumers to buy passenger vehicles (which is due to expire by the end of June 2022) and an aggressive push for sales by car companies.

However, it said that the shortage of chips and components and supply chain disruptions will continue to affect some makes.

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