New vehicle sales in Malaysia increased by 14.2% to 67,314 units in March, from 58,919 units a year earlier, according to data released by the Malaysian Automotive Association (MAA).

Passenger vehicle sales increased by 13.8% to 59,318 units while commercial vehicles sales rose 17.6% to 7,996 units.

The association put the increase down to strong promotional activity during the month as dealers cleared stocks ahead of the implementation of the new goods and service tax (GST) at the end of the month.

First quarter sales rose by 5.2% to 168,306 units, compared with 159,913 a year ago. 

The MAA expects the market to have normalised since the introduction of the GST at the beginning of April with uncertainty over the direction of new car prices now removed.

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