The sales of second-hand cars are predicted to slow down for the remainder of the year, primarily due to the conclusion of the sales tax exemption on March 31. According to Datuk Tony Khor, the President of the Federation of Motor and Credit Companies Association of Malaysia, the sales of used cars during the first quarter of the year were comparable to the same period in the previous year. However, sales began to decline starting from the second quarter.
As reported by TheStar, Khor explained that the strong sales of used cars in the first quarter were influenced by the deadline of March 31, which was set for car manufacturers to deliver models ordered by customers to take advantage of the sales tax exemption under the National Economic Recovery Plan (Penjana). As more individuals purchased new cars, the necessity to trade in their old cars increased.
With the closure of retail outlets for almost 3 months due to suspension of activities by the government, there has been a clear impact on new vehicle sales and bookings. To boost sales in the remaining months of the year, UMW Toyota Motor (UMWT) will be having sales promotions.
For the month of September, customers can enjoy the lowest instalment for the Toyota Yaris from RM493 a month with EZ Beli, while those who buy a Toyota RAV4 can get a cash rebate of up to RM10,000. Customers can save money until the end of 2021 as the sales tax exemption applies to all new models, including imported CBU models. For the popular Toyota Alphard MPV, the savings amount to RM17,391.
Last year, UMWT reported total sales of 59,320 vehicles, consisting of 58,501 units from the Toyota brand and 819 units from the Lexus brand. The total sales volume of new Toyota and Lexus vehicles in the month of August was 2,524 units, 56% lower than for the same month in 2020. However, when comparing the first 8 months of 2021 with the same period in 2020, the total sales volume of Toyota and Lexus vehicles was 38,085 units in 2021 and 31,734 units in 2020. This was due to the continued strong sales momentum that started last year.
“It has certainly been challenging for us, but we understand the necessity of the actions taken by the Government to fight the COVID-19 pandemic. On our part, we have made sure that our workforce has been vaccinated so that we can safely resume and continue our activities at our facilities around the country,” said President of UMW Toyota Motor, Ravindran. K.
“Our loyal customers are also not forgotten and we will soon announce a new program that will reward them for their loyalty to the brand over more than five decades,” Mr. Ravindran added.
He gave assurance that all sales and service outlets will follow the Standard Operating Procedures (SOPs) specified by the Health Ministry. Customers and visitors will be required to have temperature scans and register their visit using the MySejahtera app, as well as use hand sanitizers and facemasks at all times. The employees at all facilities will likewise follow SOPs for protection and safety.
Meanwhile, production activities have resumed at the two assembly plants in Selangor. While there is a small backlog of orders to meet due to the shutdown, UMW Toyota Motor expects to be able to deliver new vehicles to customers within a reasonable time-frame.
Assembly Services Sdn Bhd in Bukit Raja, Selangor, one of the two vehicle assembly plants of UMW Toyota Motor.
“We thank our loyal customers for their patience, support and understanding. It is a challenging time for everyone and we have been doing our best to assist customers by maintaining communication channels for them to use if they have a problem with their Toyota or Lexus vehicle. Now that activities can resume, we hope they will ensure that their vehicles continue to have maintenance service carried out,” added Akio Takeyama, Deputy Chairman of UMW Toyota Motor.
With the exemption of sales tax extended till the end of 2021 (from its original date of June 30), car-buyers will be able to save money on their purchases. Besides enjoying these savings, they can also get special deals from Edaran Tan Chong Motor (ETCM) when purchasing new Nissan models.
The company’s latest Nissan ‘Great Rewards’ campaign offers sales tax savings, low monthly instalments with Flexi Financing program and accessories or maintenance packages.
For example, the latest Almera 1.0 Turbo now comes with an Urban accessories package worth up to RM5,500 and with the Flexi Financing offer, the instalment will be RM530 each month (terms and conditions apply).
There is also a new Special Civil Servants Promotion for the Almera 1.0 Turbo VL variant with a starting price from RM71,906.
Almera Turbo
Navara
Those who have want a more versatile and tough off-road capable vehicle can consider the latest Navara. The 4×4 2.5-litre Turbo Double-Cab Pick-up comes with many best-in-class technologies, including an array of Nissan Intelligent Mobility driver-assist features and safety systems. The monthly instalment for this model can be from RM960 using Flexi Financing.
Other Nissan models with special models are the X-Trail and Serena S-Hybrid. For the X-Trail, ETCM is offering an IMPUL or Aero Edition accessories package (worth up to RM5,600) and Flexi Financing that starts from RM1,020 monthly. The Serena S-Hybrid comes with 3 years of free scheduled maintenance and service with parts and labour included. Using Flexi Financing means the instalment can be RM1,080 monthly.
Serena S-Hybrid
As showrooms are presently closed, interested customers can visit the Nissan Flagship Store at Lazada where they can not only find out about the many models available but also make bookings for just RM250 to initiate the purchase process.
Other channels for information on Nissan products and services in Malaysia are the Nissan Online Showroom as well as the Nissan Customer Care Centre hotline 1800-88-3838.
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.
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.
After suffering loss of production and sales in March, April and May this year due to the Movement Control Order suspending most commercial activities, a rebound has been evident in new vehicle sales. With the sales tax-exemption incentives provided by the government, which will last till the end of the year, June sales are expected to be strong when the Malaysian Automotive Association releases the full data.
Meanwhile, Proton reports that its total number of sales was 9,623 units for June. This is the second highest volume for the brand in 2020. The number also represents a 69.5% growth over May 2020 and a 26.3% increase over the same month in 2019 when the world wasn’t affected by a pandemic.
Data sources: Proton and Malaysian Automotive Association
Saga sells the most
The models contributing to the surge in sales were the Saga, X70 and Persona. The Saga, which celebrates its 35th anniversary this month, had its best sales month in nearly 6 years with 4,447 units sold.
1,909 units of the X70 were delivered to new owners around the country while the Persona retained its position as the best-seller in the B-segment sedan category for a second consecutive month.
The cumulative volume for Proton after the first 6 months of 2020 is just slightly over 37,000 units and the company estimates its market share to be 21.2%, a 6.5% increase against the same period last year.
The Saga celebrates its 35th birthday this month.
Busy second half of 2020 expected
“Proton’s sales in the first full month of business since February have been encouraging. While we remain cautiously optimistic for the second half of 2020, the demand for Malaysian cars in general and Proton vehicles in particular points towards increased consumer confidence in our products. This interest has also been buoyed by the recently announced sales tax holiday which, in our opinion, has stimulated demand”, said Roslan Abdullah, CEO of Proton Edar.
Encik Roslan said the second half of the year will be a busy one. ”Kicking things off will be our 35th anniversary celebration for the Proton Saga. We hope to use the occasion as a springboard for other activities this year as we continue our efforts to redefine Proton’s customer experience via a mix of 3S/4S outlets and innovative new products,” he added.
Bookings made from now up to June 30, 2020 will be entitled to an additional 1-year warranty extension, and up to additional 2-years free insurance (depending on model).
Sime Darby Auto Performance (SDAP) is offering customers even further versatility and flexibility for those buying a new Porsche Macan with the new Porsche 360 Financing+, applicable from now up to 31 December 2020. This new extension of SDAP’s current 360 Financing programme starts from RM6,300 a month with up to 30% reduced monthly repayments compared to conventional financing (for the Macan).
Maximum financing of up to 90% of the vehicle value is available with financing periods starting from 12 months up to 60 months.
Note: Prices shown are for private registration, excluding insurance premiums. CKD models have full Sales Tax exemption of 10%, CBU models have partial Sales Tax exemption of 5%.
Note: Prices shown are for private registration in Peninsular Malaysia with 10% Sales Tax excluded and special promotional rebates. Insurance premiums not included.
Besides the reduction from exemption of 10% Sales Tax, Proton is reducing prices further with a ‘Tax Holiday’ promotion which offers rebates from RM400 to RM7,000, depending on the model and variant.
