Cars to be more expensive once SST implemented

Syndicated News
Written by Syndicated News

PETALING JAYA, July 18 2018 : The Malaysian Automotive Association (MAA) has revised downward its Total Industry Volume (TIV) target to 585,000 units this year from the 590,000 units 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 today.

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 very 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 the 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.

“It is also important to ensure Indonesian car manufacturers support the idea of an ASEAN model to avoid any export restrictions by the country,” she added.

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.

“If you look at the other ASEAN countries, none have national cars and look at how well Thailand and Indonesia are doing.

” We also don’t have economies of scale. Our industry only has a 585,000 (TIV) and to undertake a national car project, you need to work with a world-class manufacturer willing to invest in Malaysia,” she said. – Bernama



About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.