KUALA LUMPUR (September 19): Vehicles sold in August rose 36% to 66,614 units from 48,922 units in July as auto companies filled reservations received before June 30, 2022 that are eligible for the sales tax exemption, according to the Malaysian Automobile Association (MAA).
Compared to August last year, car sales jumped more than 270% to 17,923 units. Auto sales have surged since Malaysia emerged from the Covid-19 pandemic as consumers sought to buy cheaper cars due to the government’s sales tax exemption.
On June 20, the Ministry of Finance announced that the sales tax exemption for passenger vehicles – 50% for imported vehicles and 100% for locally assembled cars – which was introduced in June 2020, would end June 30, 2022.
However, cars booked before the expiration date will still be eligible for the tax exemption, provided the cars were registered before March 31, 2023.
According to the MAA, passenger vehicle sales rose to 59,769 units from 15,475 units in August 2021, while commercial vehicle sales increased to 6,845 units from 2,448 units a year ago.
Year-to-date (YTD) total vehicle sales were 447,209 units, a 62% increase from 274,600 units in the same period last year.
Meanwhile, total vehicle production increased year-on-year (year-on-year) to 69,378 units in August from 13,961 units, while the YTD figure stood at 439,372 units from 258,024. units during the corresponding period last year.
Looking ahead, MAA expects September car sales to hold steady at August 2022 levels. However, the association added that chip and component shortages will continue to affect some brands.