Malaysian car sales up by 33 percent for H1 2022, prompting optimistic TIV revision to 630,000 units

Unsurprisingly, new car sales for H1 2022 rebounded strongly, no doubt boosted by the extension as well as eventual deadline of the sales tax exemption. This resulted in a total industry volume (TIV) of 331,386 units for the first 6 months of 2022, a resounding 33 percent increase over the 249,178 units from the corresponding period in 2021.

As you can see from the graph, the year-on-year (YoY) sales were consistently higher in H1 2022, except for the month of April.

In fact, the March 2022 sales of 73,244 units was an all-time high monthly TIV in the history of the local automotive industry. The record can be attributed to a rush for deliveries by MAA members given the end of their financial year on 31 March 2022 as well as a longer working month.

Also Read: Malaysia’s 2021 new car sales dragged down by Myvi, sustained by Hilux and Triton

The government sticking to its guns to not extend the sales tax exemption incentive for passenger vehicles after 30 June 2022 would have also contributed massively for the H1 2022 figures as buyers rushed to place a booking before the deadline.

This pushed the June 2022 sales to 63,366 units, the second highest monthly sales for H1 2022. In fact, the numbers could have been higher had it not been for the shortages of chips and components which reduced output.

Also Read: Vehicle sales took a hit in January 2022 with a drop of 44 percent but don’t you worry

In accordance with the surge in demand, the total production volume for H1 2022 increased to 31.8 percent to 317,933 units against the 241,288 units from H1 2021.

“For the automotive industry, despite not having the PEMERKASA Plus plan for car buyers to enjoy sales tax exemption extended beyond 30 June 2022, MAA members are happy and pleased that the authorities have allowed buyers with confirmed booking to register their vehicles by 31 March 2023. This measure is indeed a positive one as it will help the automotive industry to fulfil backlogged orders while at the same time allowing the rakyat to enjoy lower price cars,” said Datuk Aishah Ahmad, MAA President.

Also Read: March 2022 vehicle sales are 62.5 percent higher than month before, exceeds target for Q1

Given the substantial increase in sales for the first half, the MAA has revised their forecasted TIV for 2022 from 600,000 units to 630,000 units, a 5 percent increase over the initial forecast and a 23.8 percent increase over the 508,911 units sold for the whole of 2021.

The MAA has taken a number of factors into consideration for the revision, among which are:

• the country's first-quarter 2022 performance saw a growth of 5 percent, which the Ministry of Finance (MOF), states will be supported by increases in domestic and external demand, as well as labour market recovery to maintain the official GDP forecast of 5.3 - 6.3 percent for 2022
• the authorities believe with the government's consistent policy support, particularly initiatives under an expansionary Budget 2022, and previous stimulus / assistance packages, will continue to improve the economy for H2 2022 and the reopening of international borders are already showing signs of growth in business activities
• the allowance by the government for buyers that have confirmed bookings before the end of the sales tax exemption on 30 June 2022 to register their vehicles by 31 March 2023
• introduction of new models such with latest designs and features as well as electric vehicles at affordable and competitive prices

Lastly, the market share for the top 5 brands sees Perodua continue its undisputed reign at the top with a 38.4 percent share for H1 2022. Although the percentage represents a slight drop over the corresponding period for H1 2021, the sales figures itself increased to 127,343 over the 2021 numbers of 97,290.

That alone should give you an idea of the immense growth the first half of the year has experienced over the previous year.

Proton continues in second place at 17.3 percent, followed by Toyota at 13.7 percent and Honda a close fourth at 12.0 percent. In fifth place is Mitsubishi with a 3.8 percent share, no doubt aided in growth by the Xpander.