Malaysian motor traders bullish about 2021 on the back of extended govt incentives, tax exemptions

Perodua, according to MMA’s numbers, enjoyed 41.6 per cent of the local market share with 220,163 units sold in 2020. — Bernama pic
Perodua, according to MMA’s numbers, enjoyed 41.6 per cent of the local market share with 220,163 units sold in 2020. — Bernama pic

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PETALING JAYA, Jan 21 — After promising numbers in the last two quarters of 2020, the Malaysian Automotive Association (MMA) are optimistic in projections for vehicle sales this year. 

MMA president Datuk Aishah Ahmad, at a virtual press conference this morning, pointed out how one of the main reasons behind better numbers in Q3 and Q4 of 2020 were the government incentives and tax exemptions offered under the Penjana stimulus package. 

As such, the government’s decision to extend the sales tax exemptions and incentives for passenger vehicles until June 31 this year, now under the recently announced Permai stimulus package, should further encourage buyer sentiments she said. 

“In 2020 the total industry volume (TIV) was at 529,434 vehicles, and our projection for 2021’s TIV is 570,000 vehicle units, which is an increase of eight per cent,” Aishah said. 

Other projections for a better performance this year include the lowering of interest rates on hire purchase loans by banks, the introduction of newer models equipped with the latest specifications and designs while being priced competitively. 

MMA also factored in aggressive promotional and marketing campaigns by car companies to push sales and maintain market share amid uncertain times, adding how incentives could see a price drop of between 3 and 7 per cent. 

“Coupled with the many economic stimulus packages initiated by our government, MAA is optimistic that the local automotive market will rebound in 2021,” Aishah added. 

When asked if MMA had factored in the latest movement control order (MCO) into their projections, Aishah replied in the affirmative, adding how any recalibration to their predictions would be revealed after their midterm review in June. 

“However, if measures like MCO are extended, it will definitely have an impact on the automotive industry, as even now some showrooms are experiencing a drop in walk-in sales of 50 to 70 per cent. 

“People are afraid to go out of their homes to purchase cars, their safety is more important,” she added.

The raging Covid-19 pandemic and flooding in several states across the country, she added, contributed to their bleaker outlook for January 2021 which they projected to perform worse than last month. 

Statistics provided by MMA showed a TIV of 170,464 vehicles sold in Q3 of 2020, with 146,668 units during the same period in 2019, and 184,121 vehicles sold in Q4 of 2020, up from the 161,296 units the previous year. 

As for the first half of 2020, Q1 saw 106,582 units sold with 143,036 in 2019, and Q2 2020 with a dismal 68,267 units sold with 153,281 units over the same period in 2019. 

The worst month in 2020 was April, presumably as a direct effect of the movement control order, with only 145 vehicles sold, as compared to its best month in December, with 68,836 units sold. 

As for the local market share, 2020’s numbers showed the top five carmakers maintaining their spots, namely Perodua, Proton, Honda, Toyota, and Nissan. 

Perodua, according to MMA’s numbers, enjoyed 41.6 per cent of the local market share with 220,163 units sold in 2020, with a market share expansion of 1.8 per cent. 

Local carmakers Proton held on to second spot with 20.5 per cent market share, up 3.9 per cent from 2019, with 108,524 units sold last year. 

A total of 60,468 Honda vehicles were sold last year, with Toyota recording 58,501 units sold, and 14,160 from Nissan.

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