Tax Exemption Revs Up Vehicle Sales

MAA

The passenger vehicle sales volume in December 2020 was 62,122 units representing growth of 26 per cent in comparison with the 49,318 units sold in 2019.

Passenger Vehicle Sales Up in December 

The sales tax exemption provided under the Penjara economic stimulus plan, said the Malaysian Automotive Association (MAA) has contributed to the higher vehicle sales for 2020.

Against the month of November, the total vehicle sales volume in December increased by 21.8 per cent to 68,836 units from 56,489 units, which was 12,347 units more. According to MAA, this was due to consumers buying forward in anticipation that the sales tax exemption incentive for passenger vehicles would end on 31 December 2020, which has now been extended to June 2021.

However the total industry volume (TIV) registered in 2020 was 529,434 units, dropped by 12.4 per cent or 74,847 units, compared with a total of 604,281 units in 2019.

The passenger vehicle sales volume in December 2020 was 62,122 units representing growth of 26 per cent or 12,804 units in comparison with the 49,318 units sold in 2019. 

Year-to-date (YTD) figures for total of passenger vehicles sold in 2020 was at 480,965 units, which decreased by 12.6 per cent or 69,21 units in comparison with the previous year.

In terms of passenger vehicle production volume, December witnessed an increase of 28 per cent to 51,917 units compared to 40,662 units in the corresponding month for 2019.

The YTD cumulative production of passenger vehicles for 2020 reached 457,755 units, dropped by 14 per cent or 76,360 units from 534,115 units as compared to the same period in 2019.

MAA expects that the sales volume in January 2021 to be lower than December 2020 due to the market uncertainty caused by Movement Control Order (MCO) in 5 states and 3 Federal Territories effective 13th January 2021, and the impact of floods in certain states in Peninsular Malaysia. 

About the author

Mary has over 20 years experience as the editor of our Malaysian sister magazine, The Tyreman. Based in Kuala Lumpur, she writes articles for us on the Malaysian and other South East Asian markets.

Phone: (60) 3 7781 1323

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