BMW Malaysia is less affected by chip shortage, OK to fulfil most orders by June 2022

• Inventory of CKD packs at circa 1.5 months
• Only minimal waiting period for popular models - 3 Series, 5 Series, X1, X5
• Majority of orders to be fulfilled before SST exemption’s expiry on 30-June 2022

BMW Malaysia is weathering the current global shortage in automotive semiconductor parts better its rival Mercedes-Benz Malaysia, at least for now.

According RHB Investment bank’s latest report on Sime Darby, whose Motor division owns BMW dealer Auto Bavaria as well as the BMW Group engine and vehicle assembly facilities in Kulim, BMW still has a reasonably healthy circa 1.5 months inventory.

The BMW Group Malaysia plant in Kulim, Kedah is the company’s export hub for South East Asia, exporting engines and finished cars to Thailand and the Philippines.

Also read: BMW Group Malaysia exported over 4,600 cars since 2018 – From Kulim to Thailand, Philippines

Separately, checks with BMW dealers also show that there is only minimal waiting period for the 2 Series Gran Coupe, X1, and X5.

Waiting periods for the 3 Series and 5 Series are also reasonably OK. Deliveries before the sales tax exemption expiry date of 30-June 2022 is very possible but given the fluidity of the situation, dealers are refraining from making promises.

In any case, the Malaysia Automotive Association has confirmed that although sales tax exemption for locally-assembled (CKD) passenger cars will expire by 30-June 2022, there will be a one-month grace period, meaning that cars that could not be registered before 30-June will have until 31-July 2022 to do so.

Although the outlook for BMW Malaysia is fairly positive for now, the situation is very fluid and RHB analysts caution that the on-going conflict in Ukraine with Russia could disrupt supply of wire harnesses, which the company sources from Ukraine-based suppliers.

Its Mercedes-Benz Malaysia however, is facing shortage supply, especially for its SUV models. Waiting period for the Mercedes-Benz GLA, GLC, and GLE has stretched past June 2022.

In the case of the GLE, the orders can only be fulfilled in 2023, as CKD packs for the GLE come from the company’s Alabama plant in USA, which is also suffering a severe shortage in parts.

Also read: Less than 3 months left for SST-free prices – Which brands can deliver cars before tax cut expires in June?