MAA: Vehicle sales down 4.6pc in first half of 2025, target remains unchanged
A total of 373,636 units were sold from January to June, down from 391,451 units in the corresponding period in 2024.
MAA attributed the decline to several factors, including a high base effect from last year's record-breaking total industry volume (TIV) of 816,747 units, as well as a sharp drop in January sales following a surge in advance purchases the month before.
'Advance purchases in December 2024 affected sales in January 2025. Highest monthly TIV of 81,735 units recorded in December 2024 compared to January 2025 TIV of 50,397 units,' the association said in its mid-year sales and production review released today.
December 2024 saw a record 81,735 units sold, while sales in January 2025 dropped to 50,397 units.
Demand for commercial vehicles also declined, partly due to the end of diesel subsidies in June 2024. Sales in this segment fell 21 per cent to 26,552 units.
Passenger vehicle sales dropped three per cent to 347,084 units.
Despite the slower start to the year, MAA is maintaining its 2025 target of 780,000 units, citing continued economic growth and lower interest rates.
It also expects higher demand for hybrid and small, affordable cars following the reduction in fuel subsidies.
Factors supporting the projection include Malaysia's GDP growth forecast of between 3.5 and 4.5 per cent, Bank Negara Malaysia's recent OPR cut to 2.75 per cent, and sustained demand for hybrid electric vehicles (xEVs) and entry-level A-segment models, particularly after the removal of petrol subsidies in the second half of the year.
'The forecast remains in line with MAA's early projection of 780,000 units for 2025, which is 4.5 per cent lower than last year,' it said.
So far, the industry has achieved 48 per cent of the full-year target, MAA added.
Sales of xEVs rose 36 per cent year-on-year to 30,573 units, while SUVs saw the largest gain in volume, increasing to 99,891 units from 95,307 in the same period last year.
Total industry production for the first half of 2025 fell 10 per cent to 352,626 units. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
38 minutes ago
- Barnama
APEC Preparation Meeting Approves Seoul-Led Action Plan For Development
SEOUL, Aug 15 (Bernama-Yonhap) -- A Seoul-led action plan for the capacity building of developing economies of the Asia-Pacific Economic Cooperation (APEC) was approved at a meeting of senior APEC officials held to prepare the upcoming APEC summit in South Korea, the South Korean Foreign Ministry said on Friday. According to Yonhap News Agency, the five-step Capacity Building Need Initiative (CBNI) for developing APEC economies was endorsed at the APEC 2025 Korea Third Senior Officials' Meeting (SOM3), held in Incheon, about 40 kilometres west of Seoul. The two-day SOM3 brought together some 5,800 officials from 21 APEC member economies, delegations from observers and the secretariat to discuss a road map on strengthening the service competitiveness of the Asia-Pacific region and improving the environment for business and trade as well as devising a new financial action plan for APEC.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Petronas Chemicals drops 11% after RM1bil loss in Q2
Petronas Chemicals suffered its largest quarterly loss since listing with a RM1.08 billion net loss in Q2 FY2025. (Bernama pic) PETALING JAYA : Petronas Chemicals Group Bhd's (PCG) shares tumbled 11% today after posting its largest quarterly loss since its listing in 2010, at RM1.08 billion for the second quarter ended June 30 (Q2 FY2025). The integrated chemicals producer, which posted a RM777 million net profit a year ago, saw its earnings affected by lower product margins, huge unrealised foreign exchange losses, and asset impairments. The stock fell as much as 44 sen or 11% to RM3.52 in the afternoon session, following the release of its Q2 financial results. It managed to pare its losses to close 36 sen or 9.1% lower at RM3.60, valuing the group at RM28.8 billion. It was the 11th most active stock on Bursa Malaysia with 26.4 million shares traded. Year to date, the stock has fallen nearly 26%. Revenue for Q2 fell 16% year-on-year to RM6.4 billion, impacted by lower sales volumes and product prices, reduced revenue from joint operations and the ringgit's appreciation against the US dollar. For the first six months of FY2025, the Petronas Group's chemical arm posted a cumulative net loss of RM1.1 billion from a net profit of RM1.45 billion in the same period last year. Revenue for the first half fell 7.4% to RM14.09 billion from RM15.23 billion last year. Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 56% to RM395 million, mainly due to weaker product spreads and reduced contribution from Pengerang Petrochemical Company Sdn Bhd (PPCSB). Forex losses widened to RM446 million from RM62 million a year earlier, largely due to the unrealised forex impact from the revaluation of shareholder loans to PPCSB. The group also recognised RM431 million in impairment losses on property, plant and equipment within its specialities segment, primarily at its Swedish unit Perstorp, which it acquired for RM7.31 billion in 2022. PCG's plant utilisation rate dropped to 77% from 94% in the previous quarter, as feedstock supply disruptions and repair and maintenance works impacted production. Among the affected facilities was PC Fertiliser Kedah, which faced feedstock shortages due to the gas pipeline incident at Putra Heights, which was fully resolved as of June 2025. Strategic portfolio review The disappointing results has prompted the group to intensify its business review, cut costs and resize its workforce. In a statement, the company also said it was reassessing investments in joint ventures and associates. Mazuin Ismail. Managing director and CEO Mazuin Ismail said in light of the increasingly dynamic market environment, PCG is undertaking a 'strategic portfolio review across our entire value chain'. 'Although we faced market and operational challenges during the quarter, our financial position remains robust. 'Furthermore, our value creation and cost optimisation initiatives have led to more than RM200 million in improvement in Ebitda on a year-to-date basis. This has enabled us to declare an interim dividend of RM240 million,' he said in a statement. The group declared a first interim dividend of three sen per share, down from 10 sen in the same quarter last year, payable in September.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Investors hammer NexG over Classita acquisition
BIMB Securities has downgraded NexG to a 'sell' from 'hold' after its acquisition of a minority stake in Classita Holdings Bhd. PETALING JAYA : NexG Bhd plummeted 31% today after investors gave the thumbs down to its acquisition of a minority stake in Classita Holdings Bhd, an undergarments manufacturer seeking to reinvent itself as a property developer. Formerly known as Datasonic Group Bhd, the stock tumbled as much as 31.5% or 17 sen to its intraday low of 37 sen. This was its steepest fall in a single day since October 2018. The counter ended the day half-a-sen higher at 37.5 sen, down 29.9%, valuing the security-based ICT solutions provider at RM1.24 billion. Bursa Malaysia also suspended short selling of the counter for the day. It was the most actively traded stock on the bourse with 188 million shares changing hands. NexG announced last Friday it had acquired a 32.61% equity stake and another 414.31 million warrants in Classita for a total of RM76.78 million. If it exercises all the warrants – and no one else does – its stake could rise to 49.6%. The company bought 402.06 million Classita shares from Hong Seng Consolidated Bhd at 15 sen each – 87.5% above the last traded price of eight sen. NexG said it will fund the purchase with RM40 million in short-term borrowings, and RM36.78 million in internal funds. Last month, NexG was granted a six-month contract extension by the home affairs ministry to continue supplying passport documents and polycarbonate biodata pages to the immigration department. This is the fifth extension granted since the original contract expired in November 2021. NexG said the extension was for the period from Dec 1, 2025, to May 31, 2026. From lingerie to property Perak-based Classita, formerly Caely Holdings Bhd, is known for manufacturing lingerie and undergarments but has signalled its intent to diversify into the property and construction sectors. The company is poised for another name change after it announced today it plans to change its name to NexG Bina Bhd after NexG became its largest shareholder. It also appointed former inspector-general of police Razarudin Husain as its new independent, non-executive chairman with immediate effect. NexG said its interest in Classita is mainly for its property and construction business, including a CIDB G7-certified unit and ongoing projects. It also sees Classita's land bank and strong cash position as key advantages. Meanwhile, BIMB Securities has downgraded the stock to a 'sell' from 'hold'. The research house questioned whether NexG's move is a 'strategic diversification or distraction' from its core technology and identity business. It noted that 90% of Classita's revenue comes from undergarments manufacturing while its property push has yet to generate meaningful earnings. 'Entering a sector with a different DNA – cyclical, capital-intensive, and operationally complex – makes flawless execution more critical,' it said. It cautioned that NexG must be 'more proactive and transparent' on integration and capital allocation to assure investors. Classita's shares rose 12.5% or one sen to nine sen today, valuing the company at RM110.95 million.
