KUALA LUMPUR (July 21): The Malaysian Automotive Affiliation (MAA) has raised its 2022 Malaysian automotive complete trade quantity (TIV) forecast by 5% to 630,000 vehicles, from the beforehand estimated 600,000, following the pent-up demand for brand spanking new vehicles within the first half of 2022 (1H22), taking under consideration the nation’s financial restoration from the influence of Covid-19-driven motion restrictions, which had damage automobile gross sales after the pandemic started in early 2020.
MAA president Datuk Aishah Ahmad mentioned the continued restoration of the Malaysian economic system and the Ministry of Finance’s (MOF) choice to increase the automobile registration deadline to March 31, 2023 to allow automobile consumers, who booked their autos by June 30, 2022, to take pleasure in gross sales tax exemption, are amongst components resulting in the upward revision of the MAA’s 2022 Malaysian automotive TIV forecast.
“This measure (deadline extension) is certainly a optimistic one as it can assist the automotive trade fulfil [the backlog of] orders whereas on the identical time enable the rakyat (folks) to take pleasure in lower-priced vehicles,” Aishah mentioned on Thursday (July 21) throughout a digital press convention on the Malaysian automotive sector’s 1H22 efficiency.
The introduction of latest automobile fashions moreover components similar to promotional campaigns by automobile producers and distributors in addition to efforts to fulfil the backlog of orders might assist increase automobile gross sales in 2H22.
The MAA’s revised 2022 Malaysian automotive TIV forecast of 630,000 new vehicles is increased than the 508,911 new vehicles offered in 2021, Aishah added.
In the meantime, the MAA additionally launched its Malaysian automotive TIV forecasts for 2023 to 2026.
Aishah mentioned the MAA’s Malaysian automotive TIV forecast for 2023 is ready at 636,300 new vehicles, adopted by 649,030 new vehicles for 2024.
For 2025 and 2026, the nation’s new automobile gross sales quantity figures are seen at 662,660 and 677,240 models, respectively, she mentioned.
Wanting again at 1H22, Malaysia’s new automobile gross sales rose to 331,386 models then from 249,178 a yr earlier.
For June 2022, she mentioned the nation’s new automobile gross sales jumped to 63,366 models from 1,926 a yr earlier.
“This huge enhance in TIV may be attributed to the pent-up demand for brand spanking new autos within the 1H22 and likewise partially because of low base impact, [for example] low TIV for 1H21 because of the implementation of [the] Full Motion Management Order in June 2021.
“June 2022 TIV may have been increased, if not for the shortages of chips and elements which had affected sure [car] makes.”
Aishah mentioned the nation’s June 2022 new automobile gross sales quantity of 63,366 models was the second highest month-to-month TIV achieved throughout 1H22.
The “all-time-high month-to-month TIV” recorded by the Malaysian automotive trade was March 2022, throughout which 73,244 new vehicles have been offered.
“The push for deliveries by MAA members having their monetary yr ending on March 31, 2022 and an extended working month may have contributed in the direction of this achievement.”
Wanting forward, Aishah cautioned that the continued automotive part shortages might dampen automobile manufacturing and that Financial institution Negara Malaysia’s choice to extend the in a single day coverage charge by 25 foundation factors to 2.25% might dampen client confidence.
She additionally warned of different international and home uncertainties that will have an effect on client demand for brand spanking new autos.
“Companies might maintain again investments in view of the continued uncertainties on the international stage in addition to our home political scene, [with] many analysts anticipating that the fifteenth basic election [in Malaysia] will happen throughout the yr (2022).
“Occasions arising from geopolitical tensions, escalating oil costs, inflationary considerations, enhance in meals costs, enhance in logistics and delivery prices, and provide chain disruptions might dampen our nation’s financial development outlook, and in flip, customers’ demand for brand spanking new autos.”