Malaysia 2022. Motorcycles Sales Fell 15.7% In First Quarter

20122
Malaysia Motorcycles
Yamaha MT-15

Malaysia Motorcycles Market started the 2022 with a double-digit lost. Data for the first quarter has been below the expectations, with a sudden unexpected double digit drop and with quarterly sales at 137.935 (-15.7%). The fall is across all segments and hit almost all manufacturers.

Malaysia Motorcycles Industry Trend and Perspectives

During the post-pandemic period, which hit hard the ASEAN motorcycles market, the industry was almost resilient in Malaysia with sales declined just 8.4% from the 2019 to the 2021, although the entire month of April 2021 was without vehicles registrations for the heavy shutdown decided by the government.

Based on this background, the 2022 perspectives were positive, although distribution difficulties created by the supply chain disruption and high cost of raw materials and components. An additional local cause for lower sales was expected in the Kawasaki decision to sell local company to Modenas, which will produce few Kawasaki models in its plant, under licence (the deal has been completed on April 1st, 2022).

Data for the first quarter has been below the expectations, with a sudden unexpected double digit drop and with quarterly sales at 137.935 (-15.7%). The fall is across all segments and hit almost all manufacturers.

Motorcycles Market Trend 2021

Malaysian economic conditions improved in Q4 2021, largely due to easing Covid-19 curbs. Industrial production rebounded on average in October–November, while merchandise exports grew at a quicker rate owing to strong foreign demand for electronics. These factors, coupled with a robust improvement in operating conditions in the manufacturing sector in Q4, suggest a pickup in private sector activity.

Similarly, a lower unemployment rate in October–November bodes well for household spending, although elevated inflation in the quarter will have capped growth. On a less positive note, destructive floods at the end of 2021 and in early 2022 will weigh on current quarter activity.

However, the government presented a flood relief package of about USD 335 million on 29 December 2021, which should somewhat alleviate the natural disasters’ economic impact.

In 2022, economic growth is set to accelerate compared to last year, largely because of the fading impact of pandemic-induced disruptions to domestic activity, amid a markedly higher vaccination rate.

The Malaysian motorcycles market is one of the smaller in the ASEAN region, with around half million annual sales.

Recent years trend has been almost stable with the last record hit in the 2013 with 543.000 sales and with pre-covid 2019 hitting the second best at 538.000. In 2020 the market was the most resilient in the region reporting only a 13% lost.

The 2021 was projected to be back at the highest level, potentially at record, considering the first half ended up 40.5%, before that the sudden Q3 economic decline moved the market in negative territory.

Malaysia Motorcycles

Unfortunately, the slow development of vaccination plan created space for the virus to expand in the third quarter and the government was forced to impose lockdowns. The effect was to see plant shutdown and dealerships closed for almost one month, with Q3 sales only at 62.474, down a deep 57.4%.

In the fourth quarter sales are stabilized again but anyhow the final score was below the previous year.

Infact, total 2021 sales have been 492.101, down 1.6%. However the industry is not far from the highest top level and expectations are almost positive for 2022, expected to grow up in double digit.

As in the previous 5 years, the market is led by Yamaha (+7.2%) with over 40% of market share, but with a narrow gap over the rival Honda (+3.2%). 

Kawasaki has lost terrain due to a restructuring plan and an agreement with the local Modenas.