PETALING JAYA: It will be a mad rush for car bookings over the next nine days as the sales and services tax (SST) exemption ends on June 30.
However, buyers who order their vehicles by June 30 will be allowed until March 31 next year to register their vehicles with the Road Transport Department (JPJ).
This is because the delivery of new vehicles has been delayed for longer than usual, taking up to a year for some, due to the global semiconductor chip shortage.
Amy Tan, a local car brand saleswoman in Kuala Lumpur, said she has already been receiving more enquiries via WhatsApp following the government’s announcement.
“People are excited to take advantage of these last few days to book their car and enjoy the SST exemption.
“The fact that they have until March 31 next year to register their vehicle has further sweetened the deal.
“Customers are willing to wait for months before getting their cars,” said Tan, adding that she received 18 enquiries yesterday, while several customers have made appointments to come to the showroom this week.
“The SST exemption can’t go on forever as the government needs to collect taxes after spending so much during the Covid-19 pandemic, but the initiative has been good to help revive the automotive industry.”
Sime Darby Motors retail and distribution managing director Jeffrey Gan believes that customers will take this opportunity to place orders.
His company distributes a range of models from renowned brands such as BMW, MINI, Hyundai, Ford, Jaguar, Land Rover and Volvo.
He added that the waiting period between making a booking and getting the car delivered to the buyer depends on the model, and it could range from three months to a year.
“The move by the government to extend the JPJ registration to March next year is a good one as it will help the automotive industry fulfil backlogged orders.
“Customers will have the opportunity to take delivery of their vehicles that were affected by the shortages in stocks,” said Gan.
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Federation of Motor and Credit Companies Association of Malaysia president Datuk Tony Khor welcomed the decision by the government.
However, he urged the government to waive the June 30 cut-off time for car bookings and open up the SST to customers who register their cars within the nine-month period.
“In our proposal on May 31, we requested that the government extend the SST period for a year and we are very thankful that they gave us nine months.
“However, as the delay of delivery stretches, some customers will want to change their car models or are not able to get a certain model for imported cars.
“We hope the government will consider extending the tax exemption until March 2023 to let the market keep on moving,” he said.
Under the SST waiver, locally assembled cars priced below RM100,000 could enjoy savings of between RM2,000 and RM3,000, while cars costing between RM100,000 and RM200,000 could be cheaper by between RM4,000 and RM7,000.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said it is hoped that customers would hurry and place their orders before June ends so that they can still make use of the tax holiday.
“We have a backlog of orders and so the move to allow until the end of March 2023 to register new vehicles that were booked by June 30, 2022 will pacify those customers who have a long waiting time.
“It will also hinder order cancellations by customers. The waiting time depends and varies according to car model – some are three, six or even eight months.
“Both locally made and imported cars take a long time,” she said when contacted yesterday.
Aishah said the order bank is expected to slow down after June 30 before picking up again.
“It has always been like that when there is a change in policy,” she added.
On the MAA’s target of 600,000 units of vehicle sales for 2022, Aishah said this target can be achieved.
