KUALA LUMPUR: The Malaysian Automotive Institute (MAI) expects a higher total industry volume (TIV) of 700,000 units for this year, driven by consumers demand for cars.
Chief executive officer Mohamad Madani Sahari said the TIV forecast was in tandem with the implementation of the Goods and Services Tax (GST) on April 1.
"The GST should stimulate demand for vehicles by reducing prices with the abolishment of the Sales and Services Tax.
"Car sales in January and February performed well...we don't see the reason why demand for cars would drop following the GST," he told reporters after the launch of the Automechanika Kuala Lumpur here on Thursday.
Last year, Malaysia's car industry recorded a total TIV of 656,000 units.
Mohamad Madani said the situation was being closely monitored by the original equipment manufacturers (OEMs), who would adjust their marketing plans accordingly.
Deputy Minister of International Trade and Industry (MITI) Datuk Hamim Samuri launched Automechanika Kuala Lumpur, which is organised by Messe Frankfurt (HK) Ltd and co-organised by MAI.
Messe Frankfurt (Shanghai) Co Ltd deputy general manager Fiona Chiew said Automechanika offered a platform for companies and education institutions to come together to introduce the automotive industry and meet potential career candidates.
The regional trade fair, from March 19-21, is expected to attract over 6,000 visitors and 190 exhibitors from 240 companies in 21 countries including Bulgaria, Germany, Taiwan, Singapore, the United States, Brazil and China.
