The total sales of passenger cars for the first half of 2020 reduced 41.3 per cent as compare to 1H2019.
Government Agreed to exempt 50 per cent on CBU Cars
Based on the sales data released by the Malaysian Automotive Association (MAA), the total industry volume for the first half of the year 2020 is 174,675 units, which was accounted for by 158,876 units of passenger cars and 15,799 units of commercial vehicles.
Compared to the same period of 2019, there was 296,317 units, which is a decline of 121,642 units, or 41.1 per cent. Passenger and commercial vehicles are both affected by the drop. The total sales of passenger cars for the first half of 2019 versus 2020 is 270,861 units against 158,876 units, with a reduction of 111,985 units or 41.3 per cent.
During the month of June 2020, a total of 40,944 units of passenger vehicles were sold, which actually represents an increase of 6 per cent as compared to 38,575 units in the same month last year.
According to the MAA, the improvement was due to the sales tax exemption incentive for Completely-knocked down (CKD) vehicles and Completely built-up (CBU) vehicles under the PENJANA plan by the government.
Under this incentive, the government agreed to exempt 100 per cent sales tax for CKD vehicles and 50 per cent on CBU cars.