This is based on Malaysia’s vehicle sales rebounding in August from the previous month, and the fact that new models are scheduled to be launched soon.

However, the Nikkei Asian Review (NAR) quoted analysts as saying that a sustained recovery in the automobile industry was unlikely any time soon.

Total industry volume, including commercial and passenger vehicles, surged 23 per cent to 52,312 units in August from July, the Malaysian Automotive Association (MAA) said in a statement.

“Total industry volume should improve further in the coming months given several new model launches by year end,” NAR quoted MIDF Amanah Investment Bank analyst Hafriz Hezry as saying. He kept the total industry volume forecast at 593,302 units for 2016, a contraction of 11 per cent from 2015’s sales.

Between January and August, vehicle sales have declined 14.8 per cent to 370,242 units compared with the same period last year, MAA data show.

The MAA said it expected the introduction of new models and further campaigns to drive sales in September. It had earlier projected sales of 580,000 units for this year, said the NAR report.

DRB-Hicom’s unit Proton Holdings unveiled its Persona sedan on August 23 and the company is set to launch an entry-level model this month followed by a seven-seater vehicle in October. Perodua, a unit of industrial conglomerate UMW Holdings, introduced its Bezza sedan on July 21.

“With the strong orders of Perodua Bezza and Proton Persona as well as upcoming launches of the new Proton Saga and Ertiqa, we expect stronger sales volume in the remaining months,” NAR quoted Hong Leong Investment Bank analyst Daniel Wong as saying.

Vehicle sales in Malaysia have dipped the past year as consumers have delayed or scrapped purchases in an economy where growth rate has decelerated to the slowest in nearly seven years.