PETALING JAYA — The Malaysian Automotive Association (MAA) has revised downward its Total Industry Volume (TIV) target to 585,000 units this year from the 590,000 projected earlier on concerns over the reintroduction of the Sales and Services Tax (SST).
President Datuk Aishah Ahmad said compared with the Goods and Services Tax (GST), the SST would cause a hike in prices of most models, thus hurting demand.
“The SST will be at 10 per cent, whereas the GST is at six per cent. So, most models will see a price increase.
“From June to August, there is a big rush to register vehicles with prices being cheaper. But, from September onwards, I am sure of a bit of slowdown. If prices increase further, sales will be impacted,” she told a press conference on the industry’s performance here yesterday.
For the first six months of this year, the TIV of new motor vehicles rose 1.8 per cent to 298,714 units from 284,453 units in the same period of 2017.
The better performance was due to an increase in the passenger vehicles segment by 2.1 per cent or 5,295 units, while the commercial segment registered a small decline of 0.1 or 34 units.
Aishah said the sales volume for June was the highest recorded for the year to date, with TIV jumping 50.1 per cent to 64,502 units compared with 42,983 units in May.
“This huge jump was due to soaring demand for vehicles arising from a reduction in car prices, with the zero-rated GST, as well as attractive Hari Raya promotions and offers by MAA members,” she explained.
Commenting on Proton’s collaboration with an Indonesian partner to produce the Asean car, she said the manufacturer needed to ensure the model produced was accepted by all member countries.
Aishah also strongly believed Malaysia did not need another national car, as the local automotive industry had already developed, compared to when Proton was introduced. — Bernama