2021 new car sales (TIV) in Malaysia: 508,911 units, lowest in 14 years

Earlier today, during a virtual press conference, the Malaysian Automotive Association (MAA) has announced the 2021 tally for total new car sales in Malaysia, also known as Total Industry Volume (TIV). A total of 508,911 new vehicles were sold in 2021, down 4 percent from 2020.

As a whole, it was still a commendable achievement given the tremendous challenges faced by the industry, including the microchip shortage and Covid-19 pandemic. In fact, it was slightly higher than the MAA’s forecast of 500,000 units which was announced on 22-July 2021.

“The much smaller TIV’s contraction recorded in 2021 can be attributed to the measures and wisdom of our government in balancing between saving lives and jobs so as not to jeopardise the domestic economy”, said Datuk Aishah Ahmad, MAA President.

“The extension of the sales tax exemption incentive under PEMERKASA+ package till 31-December 2021, had also helped to sustain the demand for new passenger vehicles”, added Datuk Aishah Ahmad.

Under the new PEMERKASA+ package, the government had agreed to exempt sales tax up to 100 percent for completely-knocked down (CKD) passenger vehicles and 50 percent on completely built up (CBU) passenger vehicles.

“MAA would like to express our heartfelt and sincere thanks to the government for extending the sales tax exemption incentive, not only once but three times; the latest extension being until 30 June 2022 as was announced during Budget 2022. We are very grateful for all the support rendered to the industry to ensure the sustainability of the industry,” Datuk Aishah Ahmad said.

The last time Malaysia’s TIV reached this low was 14 years ago, when TIV was at 487,176 units in year 2007 and 548,115 units in year 2008. Before Covid-19 wreaked havoc on the automotive industry, 2019's TIV stood at 604,287 units.