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MAA expects 10% lower car sales in 2023, recession fears + higher bank OPR

Berita Kereta

MAA expects 10% lower car sales in 2023, recession fears + higher bank OPR

Forecast for the Total Industry Volume in 2023 is expected to be nearly 10% lower than 2022's due to fears of recession and other factors.


It was not all good news at the 2022 annual automotive total industry volume (TIV) review, as the outlook for 2023 looks bleak due to the predicted global slowdown of economic growth and buyer hesitation due to the possibility of an increased Overnight Policy Rate (OPR).

(Update: Bank Negara has maintained OPR rate since this article was published)

Perodua Bezza

According to the Malaysian Automotive Association (MAA), they predict the TIV volume for 2023 to be 9.8% less than 2022's, due to economic and environmental factors despite the Malaysian economy's expected expansion of 4 to 5%.

Total Industry Volume 2023 vs 2022
Market Segment

2023 

(Forecast)

2022

(Actual)

Variance

%

Passenger vehicles 585,000 641,773 -8.8%
Commercial vehicles 65,000 78,885 -17.6%
Total vehicles 650,000 720,658 -9.8%

The MAA is predicting that a rush of deliveries of many backlog orders exempted from the sales tax may provide impetus to grow sales in Q1 of 2023, but the challenges and supply chain issues such as shortage of semiconducter chips, uncertainties in geo-political tension, possible resurgence of Covid-19 cases worldwide etc. may affect the country's economic growth momentum and in turn sales of vehicles.



Adam Aubrey

Adam Aubrey

Content Producer

Wants to live the simple life, especially when it comes to cars and bikes. That's what tech is for he reckons, to make motoring simpler


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