PETALING JAYA: Total vehicle sales in February was flattish at 43,722 units, compared with 43,448 units in the previous corresponding period, according to the Malaysian Automotive Association (MAA).

       On a month-on-month basis, vehicle sales in February 2022 was 8% higher than January 2022 (which was at 40,581 units), as auto companies ramped up production to fulfil backlog orders, the association said in a statement yesterday.

       Year-to-date in February 2022, sales volume rose 10% year-on-year to 84,303 units from 76,840 units previously, MAA said.

       In terms of projection for the month of March, MAA said sales are expected to be higher than February 2022, given the longer working month.

       The association added that the projected higher sales for this month will also be due to push by companies with their financial year ending on March 31.

       In a report last week, KAF Equities Sdn Bhd said escalating metal prices as a result of the ongoing Russia-Ukraine war could add further pressure on carmakers, who are already grappling with chip shortages and higher energy costs.

       However, it said the magnitude of the impact from the ongoing Russia-Ukraine conflict will hinge on how the situation develops.

       “As of now, we do not expect the current surging metal prices to cause massive car price increases in the near term.

       “However, should metal prices continue to rise for a prolonged period, rising cost pressures on carmakers may then be passed on to buyers, increasing cost of ownership and potentially dampening demand for vehicles,” it said.

       Meanwhile, AmInvestment Bank said it expects total vehicle sales to grow 9% year-on-year to 555,000 units in 2022.

       “Industry sales are expected to rebound in 2022 as the supply chain normalises and consumers’ confidence gradually recovers, underpinned by the pick-up in broad-based economic activities,” it said.

       According to MAA data, total vehicle sales dropped 4% year-on-year to 508,911 units in 2021, as various movement restrictions caused by the Covid-19 pandemic last year hampered business operations for months.

       The last time annual automotive sales were lower than last year’s numbers was in 2007 when sales hit 487,176 units.

       In spite of the abysmal sales performance last year, the contraction was still lesser than the sales contraction recorded in 2020, which was at 12.4%. A total of 529,514 vehicles were sold in 2020.

       At its first biannual press conference in January, MAA announced that it is projecting vehicle sales to grow 18% year-on-year to 600,000 units in 2022. The projection is underpinned by the better economic environment (compared with 2021), as well as the sales tax exemption that was extended until June 30, this year.