- MAA targets 600,000 units for 2022
- Continuation of sales tax exemption to boost sales
- Production and deliveries to ramp up
The Malaysian Automotive Association (MAA) has set a total industry volume (TIV) target of 600,000 units for 2022, an increase of 2021’s sales of 508,911 units, up 17.9 percent. The last time our TIV was above 600k unit was just before Covid hit us in 2019, which saw 604,287 units sold.
Last year, due to the on-and-off lockdowns and microchip shortage, the TIV dropped for the second year in a row to 508,911 units, 4 percent less than 2020.
According to MAA’s President Datuk Aishah Ahmad, part of the reason why they think 600k units is achievable is due to the global economy is expected to rebound post-pandemic as economies globally have largely reopened. Furthermore, the Malaysian government has projected a positive GDP growth of 5.5 percent to 6.5 percent in 2022 for our country. The growth will be driven primarily by an expansionary Budget 2022, normalisation in economic and social activities.
In addition, the continuation of the sales tax exemption for passenger vehicles till 30-June 2022 and automotive companies ramping up production and deliveries of vehicles to fulfil backlog and new orders will be the main contributors to improving sales of new vehicles in Malaysia.
Despite that, according to MAA, the automotive industry may continue to face pandemic-related disruption challenges and supply chain issues such as new wave of Covid-19 infections, shortage of semiconductors chips, rising cost of freight, uncertainties in our domestic political scene etc. which may affect the country’s economic growth momentum and in turn the sales of new vehicles.
“However, it is unlikely these disruptions will cause major upheaval in the economy, given that much experiences that had been acquired by the authorities in handling of Covid-19 crisis over the past two years,” said Datuk Aishah.