KUALA LUMPUR (Nov 14): The Malaysian Automotive Association (MAA) said the country’s new car sales volume or total industry volume (TIV) could reach 800,000 units this year, driven by strong year-end promotions and robust demand for national cars.
TIV could exceed the association's July forecast of 765,000 units, following better-than-expected performance in the first 10 months of the year, MAA president Mohd Shamsor Mohd Zain said during a media briefing ahead of the Kuala Lumpur International Mobility Show (KLIMS) 2024. The association's initial projection for the year was 740,000 units.
“Sales volume could reach up to 800,000 units, based on the current momentum. The final two months look promising, especially with ongoing promotions by car manufacturers,” Mohd Shamsor said.
Year to date, TIV has reached 664,002 units, data from MAA showed, which is 135,998 units short of its 800,000 target.
“Our July forecast did not fully consider the significant backlog of orders, particularly for popular smaller models from national car brands,” added Mohd Shamsor.
Still awaiting govt decision on CKD tax
On the excise duty for locally assembled or completely knocked down (CKD) vehicles, Mohd Shamsor said the industry is still awaiting clarification from the government.
“The new regulations could significantly affect industry costs [by 8%-20%], particularly at the production level. We hope for a favourable response from the government soon, as any delays could disrupt stock planning and production schedules for CKD manufacturers,” he said.
The current excise duty exemption for CKDs is expiring at the end of this year. The government has not announced any extensions so far.
Under the current formula of calculating vehicle price, non-manufacturing costs such as engineering, development work, and intellectual property fees are included, which could impact vehicle pricing, the association noted.
While some MAA members are preparing for a "worst-case scenario", Mohd Shamsor expressed optimism and hope for swifter government feedback to enable manufacturers to adapt their plans accordingly.
On the upcoming KLIMS 2024, MAA expects the event to welcome up to 250,000 participants showchasing over 70 exhibitors, nine new car launches and nine concept car display. The event will be held from Dec 5 to Dec 11 at Mitec KL.
“KLIMS 2024 serves as a crucial platform for the automotive industry to showcase its latest advancements, providing insight into transformative trends such as electric vehicles (EVs) and eco-friendly mobility solutions," Mohd Shamsor said.
"With the Malaysian government’s ongoing commitment to sustainable and innovative mobility solutions, including incentives for EV adoption and policies supporting green technology, we see an exciting trajectory for our automotive sector," he added.