The results from the Malaysian Automotive Association (MAA) 2020 market review showed that the Total Industry Volume (TIV) performance fared better than expected.
In a year where everybody expected the numbers and figures to be down due to the pandemic, the Malaysian automotive industry actually did better than expected according to a report that has just been released by the Malaysian Automotive Association (MAA).
Although the official figures state that the TIV registered in 2020 was 529,434 units, a decrease of 74,847 units or 12.4% compared to 2019 with 604,281 units, it was nonetheless a good achievement for the Malaysian automotive industry given the extremely challenging business environment. It was higher than MAA's forecasted 470,000 units.
According to the report, the higher than expected performance in the last quarter of 2020 helped reduce the expected decline in the TIV for the full year of 2020. One of the reasons it exceeded expectations according to MAA is due to the sales tax exemption's implementation, which helped boost demand and drove sales in the second half of the year.
The TIV reached its peak in December when a total of 68,836 vehicles were registered, as consumers were buying forward in anticipation of the end of the sales tax exemption incentive for passenger vehicles under the PENJANA programme.
Pic Credit: Borneo Post
The incentive was due to end on 31 December 2020 but has since been extended to 30 June 2021.
The Passenger Vehicles segment declined by 69,212 units or 12.6%, while the Commercial Vehicles segment registered a decline of 10.4% or 5,635 units.
Looking towards 2021, MAA is optimistic that the local automotive market will rebound this year, mainly due to our government's many economic stimulus packages, including lower hire purchase loan interest rates.
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