The association’s president, Aishah Ahmad, said that a total of 131,267 cars were sold between January and March this year, compared with the 168,379 sold in the same period last year, The Malaysian Reserve reported today.
“Consumer spending has fallen as banks tighten their loan approval. Even the recent appreciation of the ringgit is not enough to boost consumers’ confidence to purchase new vehicles,” she told the financial daily.
Aishah also said household spending continued to be affected by the GST, which was implemented in April last year.
The Malaysian Reserve wrote that despite vehicle sales increasing in March against February sales numbers, the industry could be heading towards its first contraction in six years.
Tan Chong International Ltd Executive Director Glenn Tan meanwhile said a drop in car prices is unlikely despite the recent strengthening of the ringgit.
According to the daily, most automotive players increased their car prices this year due to the weaker ringgit last year.