Car sales may rise 50% during tax holiday
Car

Auto companies have revised their vehicles’ prices 6% cheaper

By RAHIMI YUNUS / Pic By MUHD AMIN NAHARUL

Passenger vehicle sales could increase as high as 50% during the “tax holiday” period based on the first week’s interest for cars since the implementation of the zero-rated Goods and Services Tax (GST).

Proton Holdings Bhd VP of sales and marketing Abdul Rashid Musa said car bookings and dealership visitations have risen 50% for the brand, attributable to the new tax rate and Hari Raya promotional campaign.

“We are seeing an increasing interest among consumers with more bookings and number of dealership visitations. However, the true effect of the 0% GST would only be known by July onwards after the Hari Raya season ends,” Abdul Rashid told The Malaysian Reserve (TMR) recently.

He said Proton Saga and Persona are leading, in terms of booking numbers.

Volkswagen Passenger Cars Malaysia Sdn Bhd MD Erik Winter also expects the sales to increase by 50%, as the sales and bookings have been very encouraging since June 1.

Winter said demands have increased across all models, especially for its SUV Tiguan and Passat.

Auto companies have revised their vehicles’ prices 6% cheaper, in line with the government’s move to zerorate the GST with some models seeing a price reduction up to RM10,000.

Industry consulting firm Frost & Sullivan said in a statement the rollback of the GST would create a huge positive impact on consumer sentiment, which should translate into overall vehicle demand and shore up the total industry volume.

Bermaz Auto Bhd ED Datuk Francis Lee told TMR that the bookings for Mazda have been increasing on a daily basis throughout the model line-up.

“We will collect as many bookings as we can and will see how we will deal with it when the Sales and Services Tax comes in,” Lee said.

Lee said the CX-5 is the best-selling model so far.

The brighter consumer sentiment has also seeped into the premium segment as Mercedes-Benz Malaysia Sdn Bhd (MBM), the country’s leading premium brand, sees greater demand for its car models and higher showroom traffic on zero GST, alongside its World Cup campaign.

MBM sales and marketing VP Mark Raine said the increase in demand is also attributed to its planned expansion on local footprint this year, including the new NZ Wheels Klang Autohaus, Hap Seng Star Puchong South Autohaus and Auto Commerz Service Centre as to date.