The sales tax exemption announced by the govt boosted demand and drove sales in 2H20
By S BIRRUNTHA / Pic By MUHD AMIN NAHARUL
UMW Holdings Bhd exceeded its vehicle sales targets in 2020 driven by strong sales achieved by both UMW Toyota Motor Sdn Bhd (UMWT) and its 38% associated company, Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
The sales tax exemption announced by the government effective June 15, 2020, boosted demand and drove sales in the second half of the year (2H20).
The group said it registered the highest monthly sales for the year with 9,246 units in December 2020, culminating in total sales of 59,320 units for 2020.
This exceeded its 53,000-unit sales target by 6,320 units or 11.9%, with Toyota Vios, Yaris and Hilux being UMWT’s best-selling models for the year.
UMWT also launched the newly enhanced Vios and Yaris on Nov 17, 2020, while it premiered the Toyota GR Yaris and Vios GR-S, as part of the Gazoo Racing line-up on the same day. These new models, coupled with the planned new model launches, are expected to drive sales in 2021.
Meanwhile, Perodua sold 25,171 units in December 2020, its second-highest monthly sales for the year. This resulted in Perodua achieving total sales of 220,154 units for 2020, beating its target of 210,000 units for the year by 10,154 units or 4.8%. Perodua Myvi, Axia and Bezza continued to be its best-selling models in 2020.
Moving forward, the group said Perodua will continue to fulfil the outstanding orders and push for higher sales this year.
UMW’s president and group CEO Datuk Ahmad Fuaad Mohd Kenali (picture) said the group is humbled by the support given by its customers who drove the performance of our automotive segment in 2020 despite the challenges caused by the Covid-19 pandemic.
“The demand recovery in 2H20 was driven by the sales tax exemption, which augurs well for the Malaysian automotive ecosystem, under the short-term Economic Recovery Plan initiatives
“We would like to express our appreciation to the government for the sales tax exemption as well as the extension to June 30, 2021, which will hasten the recovery of the automotive sector,” he added.
UMW’s net profit for the cumulative nine-month period ended Sept 30, 2020, stood at RM67.16 million, about a quarter of the RM253.98 million profit it posted the year prior.
Turnover for the period was down by nearly 27% year-on-year (YoY) to RM6.31 billion from RM8.64 billion, mainly attributed to continuous lockdowns imposed in countries the group operates in.
Its automotive segment’s revenue for the period was 29.7% YoY lower at RM4.82 billion, compared to the corresponding period’s revenue of RM6.85 billion due to lower number of vehicles sold as a result of the Movement Control Order.
UMW’s share price ended five sen or 1.47% lower at RM3.34 yesterday, valuing the group at RM3.9 billion.