During the final month of the first quarter of 2023, Perodua made a big push in production and sales to cross the 30,000-unit level, setting records in the process. The two plants completed 33,666 vehicles while 32,179 vehicles were delivered nationwide.
The March numbers added to those of January and February took first quarter production to 84,800 units while sales were 78,564 units. These represented increases of 33.9% and 27.5%, respectively, over the volumes reported for the same period in 2022.
Perodua is relieved that the Ministry of Finance (MoF) will allow car-buyers to remain entitled to the sales tax exemption even though the provision ends at the end of this month. A recent announcement by the MoF said that those who book their vehicle by June 30, 2022, will still pay the lower price even if their vehicles are not delivered yet.
However, manufacturers will have to deliver the new vehicles to them before March 31, 2023 as that is the latest date they must register their vehicles if they want to enjoy the sales tax exemption.
“We sincerely thank the government for this announcement as it gives the industry and the market breathing room to meet consumers demand while at the same time give the players time to overcome various issues that are affecting the industry,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.
He said among the issues that are currently impacting the local automotive suppliers range from the lingering impact of COVID-19, the component shortages and manpower shortages. These have led to vehicle supply shortages as vehicles cannot be completed. As a result, customers have had to wait longer and have been concerned that they will miss out on their tax exemption benefit if they get their vehicles are June 30.
“The issues are currently being addressed as Perodua and our suppliers are finding solutions and this registration extension will give us much needed room to overcome the issues,” Dato’ Zainal said. He added that, for Perodua’s customers, this announcement gives them much needed reassurance that they would be able to enjoy the sales tax exemption incentive that has boosted the industry since the year 2020.
Myvi remains the bestselling model for the Malaysian brand.
“To date, we have significant outstanding orders which we are working to fulfil. We appreciate our customers’ patience in this regard,” Dato’ Zainal said. On deliveries so far, he said that Perodua has registered 106,179 vehicles between January and May this year, which is 10% more than 96,281 units registered in the same period last year.
In terms registration according to model, the Myvi remains the most popular with 31,689 units registered in the first 5 months of this year. Next has been the Axia with 24,024 units delivered, and the Bezza at 23,336 units.
To know more about Perodua products and services or to locate a showroom for a test-drive, visit www.perodua.com.my.
The Prime Minister tonight announced that the exemption of Sales Tax (SST) which began on June 15, 2020 and was due to end at the end of 2020 but was then extended till June 30, 2021 has again been extended. This time, the extension continues till the end of 2021. The exemption is provided as one of the measures to help support business sustainability in these difficult times, especially with another imposition of a total lockdown forcing many businesses to close from June 1 to June 14.
The exemption conditions are unchanged: for all models assembled locally, full exemption of the 10% tax will be given while for models imported in XBU (completely built-up) form, the exemption will be half, ie 5%. While the savings for low-priced models may not be significant, they can be amount to quite a lot for the more expensive models.
The sales tax exemption has not been provided for pick-up trucks as they are classified as commercial vehicles, and the government is already providing other forms of support to the commercial sector.
In spite of many weeks of forced shutdown during the first half of 2020, Perodua bounced back in the second half to not only make up for the lost period of sales but even managed to exceed its forecast of 210,000 units by 10,154 units for a total of 220,154 vehicles (registered nationwide).
The achievement was helped by the government’s PENJANA stimulus program which gave exemption of sales tax to the auto industry, and for Perodua customers, that meant saving the 10% normally imposed. As reported recently, the sales tax exemption has been extended and will be allowed up till the end of June 2021.
“We thank all Malaysians for choosing Perodua and the government for extending the sales tax exemption under PENJANA to sustain the sales momentum which the automotive industry is now enjoying,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.
Measures to protect customers and employees are in place at all Perodua outlets in accordance with Standard Operating Procedures specified by the Health Ministry.
He added that Perodua manufactured 220,968 vehicles in 2020 despite temporarily halting production between March and May 2020 due to the Movement Control Order (MCO). “Despite this, the tax exemption introduced in June 2020 succeeded in spurring car buyers’ interest that was able to sustain the players as well as the local automotive ecosystem,” he said.
One million EEVs
“Perodua also hit the one million Energy-Efficient Vehicle (EEV) milestone in November 2020 – exactly two years after achieving the first half-million. This further solidifies our position as Malaysia’s largest EEV manufacturer,” said Dato’ Zainal.
Besides being busy selling and delivering new vehicles, Perodua also upheld its role as a good corporate citizen by providing protective equipment and other necessities to hospitals, schools and government agencies during the year in support of the fight against COVID-19.
The better-than-expected sales achievement had a direct positive impact on the Malaysian automotive ecosystem, helping both independent parts suppliers and dealers weather the challenges in 2020. Perodua has always been mindful of the need to help its suppliers and dealers to maintain a healthy business position.
Dato’ Zainal said that for now, Perodua will continue to fulfil outstanding orders and push for higher sales in 2021. The target for the year will be announced later on.
To locate a showroom to view, test or buy a Perodua vehicle, visit www.perodua.com.my.
This has been a year of a lot of bad news, some even tragic. But in between the bad news, there have been times when good news has come through like rays of sun piercing through dark clouds. For the auto industry, things looked grim in the first half of the year when shutdowns collapsed the market for a month. Then when the government started to plan for recovery, help came in the form of exemption of sales tax until the end the year.
This incentive must have made a difference as sales have been high over the past 5 months while people wanted to use the opportunity to save money on their purchase. As always, being able to sell cars at lower prices helps, and the companies hoped that they would get the exemption period extended into 2021. The Finance Ministry at first said no, and despite it being a time when many go on leave, some had to prepare new pricelists with the sales tax included again.
Finance Ministry changes its mind
Then, for reasons unknown, the Finance Ministry changed its mind and like the ray of sunshine in June, there was another ray again as it was announced that the exemption would continue until June 30, 2021. Whether it continues to be part of the Penjana stimulus package or is a separate provision is not known.
So for those who were disappointed that they missed the chance to save money because they could not get their loan applications approved in time or stocks were not available, this would be good news. There is no change to the exemption which also includes reconditioned vehicles.
Full exemption for locally-assembled models
Vehicles that are assembled locally will be entitled to the full exemption which is 10%, and those which are imported in CBU (Completed Built-Up) form will have only half the exemption, ie 5%. However, the exemption is not applicable to commercial vehicles and pick-ups.
Some models, like the new Honda City RS e:HEV which is due for delivery only from January 2021, will now be a bit cheaper than what buyers expected.
Generally, this means that the sales tax-exempt prices that have been applied since June will continue unless the company has reason to adjust prices. There may also be some new models that were due for delivery starting in January (eg the new Honda City RS e:HEV and the BMW 530i M Sport Dark Shadow Edition) which will be cheaper without sales tax being included.
It is also learnt that the dreaded revision of Open Market Value (OMV) calculations that was to have been adopted from the start of 2021 would no longer take place. This would have raised prices of new vehicles but now, it seems that Customs has decided not to pursue the matter.
