MAA president Aishah Ahmad attributed the improved demand to the sales tax exemption as well as the fulfilment of a large amount of outstanding orders.
“The opening of the market as well as resumption of economic activities after Covid-19 restrictions were lifted have also contributed to the increase in automotive sales,” she told FMT Business.
Aishah said the makes that were selling well were mostly Proton, Perodua, Toyota and Honda.
Early last week, MAA reported that vehicle sales in Malaysia jumped to 66,614 units in August up from 17,923 units in the same month last year.
It said the total industry volume for August was 36% higher than July (48,922 units), due to fulfilment of bookings by car companies received prior to June 30.
This bodes well for auto distributors such as Bermaz Auto Bhd.
In a recent forecast, CGS-CIMB Securities Sdn Bhd said Bermaz was expected to see a 24% rise in sales volume this year.
The research firm expects the group to deliver 13,000 Mazda cars as well as 4,000 Kias and Peugeots combined.
MIDF Research said the automotive industry is expected to experience a strong rebound.
In a report last week, it attributed the total industry volume (TIV) increase of 36% month-on-month for August to a recovery from the chip and component supply shortages, and the delivery of orders placed before June 30.
It said Honda led the sequential growth in August with an increase of 51% of its financial growth compared to July, followed by Perodua which saw an increase of 42% in August compared to July.
The research firm said barring the normalisation in overnight policy rate and higher inflation, the automotive sector’s prospects are underpinned by strong orderbooks and improving labour market and household income.
However, it warned that a prolonged or significant spike in inflation, decline in economic recovery, and a weaker than expected ringgit remain risks for the automotive sector’s growth.