MAA also raises its 2022 Malaysian automotive TIV forecast by 5% to 630,000 cars from 600,000 previously
by SHAFIQQUL ALIFF / Pic by MUHD AMIN NAHARUL
THE sales of new cars have increased to 331,386 units in the first half of the year (1H22), compared to 249,178 units last year on the pent-up demand.
Malaysia Automotive Association (MAA) president Datuk Aishah Ahmad (picture) said the increase in the total industry volume (TIV) can be attributed to the pent-up demand for new vehicles and due to low base effect as a result of the implementation of the full Movement Control Order in June last year.
MAA has also raised its 2022 Malaysian automotive TIV forecast by 5% to 630,000 cars from 600,000 previously.
Aishah added that the association is happy and pleased that the government allowed buyers with the confirmed booking to register their vehicles by March 31, 2023, which allows them to enjoy sales tax exemption.
“This measure is indeed a positive one as it will help the automotive industry to fulfil backlogged orders while at the same time allowing them to enjoy lower price cars as there had been a strong uptick in demand for new vehicles,” she added.
Following the government’s decision not to extend sales tax exemption incentives for passenger vehicles after June 30, 2022, MAA noted there had been a strong uptick in demand for new vehicles.
“As a result, the TIV registered in June 2022 exceeded by 22% to 63,366 units which is the second highest monthly TIV achieved during the 1H22 based on our forecast at the 60,000 units mark and it could have been higher, if not for the shortages of chips and components which had affected certain makes,” Aishah said.
Nonetheless, she believes that the increase of the Overnight Policy Rate by 25 basis points to 2.25% by Bank Negara Malaysia’s decision at its Monetary Policy Committee may dampen consumer confidence.