It’s to no one’s surprise that car sales plunged in September, following the end of the tax holiday. However, it’s not so much because prices are up (vs 0% GST), but because the unprecedented tax holiday has depleted the stocks of most car companies, who weren’t prepared for the frenzy.

Data from the Malaysian Automotive Association (MAA) showed that a total of 31,241 vehicles were delivered in September, which is 52% lower than the 65,551 units recorded in August. Year-on-year, September sales were 23% or 9,715 units lower than the corresponding month in 2017.

Meanwhile, total industry volume as of September 2018 is 454,971 units, 7% more than the 425,678 units from the first nine months of last year.

As you can see from the breakdown by brand chart below, it’s a sea or red, and every brand of note recorded declines in September. Nothing much to look at, just a massive hangover from the sales frenzy and a quiet month with not many cars to shift. Certain brands have maintained sticker prices in the sales tax era to further clear stocks.

Will we be seeing a recovery to end the year strong or will auto sales stagger its way to 2019? Upcoming new model launches include the debut of the Toyota Rush seven-seater, Mercedes-Benz A-Class and Proton X70.