MAA confident of achieving TIV of 470,000
By THE STAR | 15 December 2020
PETALING JAYA: Car sales for the year are inching towards the annual target set by the automotive association, with the sales tax exemption driving enthusiasm.
According to the latest data from the Malaysian Automotive Association (MAA), total sales had reached 398,159 in October.
With the sales figure for November to be known later this month, MAA president Datuk Aishah Ahmad said the association’s forecast of 470,000 TIV (total industry volume) was within reach.
“The sales tax exemption has been effective and has generated more sales than expected. I believe we will exceed the forecast figure for 2020, ” she said when contacted.
For the corresponding period (January to October) last year, 496,855 vehicles were sold.
The automotive industry has received a much-needed boost with a six-month sales tax exemption approved by the government, to last till Dec 31.
Aishah said the sales tax reprieve was a boon to the industry, adding that car companies were expecting a strong finish to the year.
“It looks very positive with December being the last month for payment of duties with the sales tax exemption for CKD (completely knocked down) and 50% off for CBU (completely built up) vehicles, ” she added.
In June, Prime Minister Tan Sri Muhyiddin Yassin announced a 100% tax exemption on the purchase of new CKD vehicles and a 50% exemption on new CBU vehicles till December.
CKD vehicles are those assembled at a local facility, while CBU vehicles are assembled in a foreign country and imported as a complete vehicle.
The automotive industry was one of the sectors that took a huge hit due to the Covid-19 pandemic and the movement control orders.
In April, MAA recorded only 141 sales of passenger and commercial vehicles – a stark contrast to the 49,935 sold in the same month the year before.
The association also reported that 22,960 vehicles were sold in May this year, a decline of more than 160% compared to the same period in 2019.
Total vehicle sales last year amounted to 604,287 units.
Following the announcement of the sales tax exemption in June, vehicle sales jump-started significantly.
A total of 57,552 car sales were recorded in July, a 11.64% increase from the same month the year before, while September saw 56,444 car sales – a 20% increase compared to the same period last year.
Car salesman Fazly Hizwan said vehicle sales had shot up since the sales tax exemption was announced.
“It is worth it as car buyers can save up to RM5,000, excluding promotions given by car companies.
“Stocks of vehicles have also been running low with more people bringing forward their purchases.
“During the movement control order in May, we got three walk-ins a day – sometimes none at all.
“Business has bounced back and is comparable to how it was last year, ” said the salesman, who is based in Melaka.
Another car salesman in Seremban said vehicle sales have been on the road to recovery in recent months.
“Some customers tell me they prefer to drive their own cars than take public transport at this time.
“We get about 20 to 30 enquiries a day. The number of enquiries have dropped since November, but it could be because customers want to take their time and visit showrooms now that the movement restrictions have been lifted, ” he said.
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