Vehicle sales up 7.4% in November

By AFIQ AZIZ / Pic ARIF KARTONO

A TOTAL of 56,489 vehicles were sold in the country in November, 7.4% higher than 52,582 units that were sold in the same period last year.

According to a statement by the Malaysian Automotive Association (MAA), the increase was attributed to the sales tax exemption for passenger vehicles.

MAA said the passenger vehicle sales for the month accounted for 51,174 units or 90.6%, while commercial vehicle sales stood at 5,315 units or 9.4%.

The six-month sales tax incentive, which started in June, is part of the government’s short-term National Economic Recovery Plan, or also known as Penjana.

It allows buyers to enjoy 100% sales tax exemption for the purchase of locally assembled vehicles and a 50% sales tax exemption for the purchase of imported cars.

Apart from the sales tax exemption, new model launches during the month also contributed to the growth in vehicle sales for the period.

However, MAA said November total industry volume (TIV) was marginally lower by 0.3%, compared to 56,670 units in October.

The association, however, noted that it is likely to be on track to achieve its yearly forecast of 470,000 vehicles sold before the year-end.

Year-to-date (YTD), the cumulative total of vehicle sales in Malaysia is already at 454,708 units.

“Sales volume in December 2020 is expected to be much higher than November 2020,” MAA secretary-general Goh Cheng Meng said.

MAA added that the ongoing aggressive promotional campaigns by car companies are also expected to continue driving car sales in December.

The January to November records, however, are still 17.24% lower compared to 549,439 that were reported in the same period in 2019.

MAA previously revised its TIV target downward to 470,000 units for 2020, from 607,000 that was initially announced in January due to negative implications of the Covid- 19 pandemic.

Meanwhile, the association said the country produced 54,832 units of vehicle in November, 17.9% higher compared to 46,517 units in the same month a year ago.

YTD, total vehicle production fell 18.7% to 429,326 units, from 527,945 units in the first 11-month of 2019.