After two consecutive years in a row of declining gross sales, the Whole Business Quantity (TIV) in Malaysia had rotated to register 720,658 models in 2022, as revealed by the Malaysian Automotive Affiliation (MAA).
Not solely it rebounded strongly, the TIV 2022 was a brand new file; an all-time excessive TIV achieved within the historical past of the native automotive business. It was additionally the primary time the annual TIV exceeded the 700,000-unit mark.
MAA attributes the all-time excessive TIV recorded in 2022 to the next causes:
- Pent-up demand for brand spanking new automobiles particularly in the course of the first half of 2022 the authorities’ determination to permit consumers with confirmed reserving (with gross sales tax exemption and submitted earlier than 30 June 2022) to register their new passenger automobiles by 31 March 2023.
- Partially resulting from low base impact, i.e., low TIV in 1H2021 as a result of implementation of Full Motion Management Order or FMCO in June 2021.
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“The extension of the interval for registration of passenger automobiles not solely ensured the rakyat will take pleasure in the advantage of cheaper price vehicles, however it additionally helped the business to fulfil the numerous backlogged orders acquired.
“On behalf of all MAA members, I wish to specific our heartfelt and honest because of the Authorities of Malaysia for extending the registration interval, which certainly had been very efficient,” mentioned Datuk Aishah Ahmad, MAA President.
“With out this extension and the super quantity of help from all of the related authorities companies, the native automotive business might not have recorded such an exceptionally excessive TIV,” added Datuk Aishah Ahmad
The entire registration of latest Passenger Automobiles in 2022 rose to 641,773 models from 452,486 models in 2021. This was a rise of 189,287 models or 41.8%.
From August 2022 onwards, the TIV repeatedly recorded a month-to-month TIV of over 60,000 models. This was due to the fulfilment of bookings by automobile firms for a lot of bookings acquired previous to 30 June 2022.
The month-to-month TIV reached its peak and all-time excessive in December 2022 when a complete of 76,657 models had been registered. It was additionally the second time in 2022 that the month-to-month TIV had exceeded the 70,000 models mark (the primary time was in March 2022 the place a complete of 73,224 models had been registered).
The exceptionally excessive TIV in December 2022 was as a result of rush by automotive firms particularly for these with monetary yr ending December 2022, in ramping up deliveries of automobiles to fulfil backlog orders.
As for the forecast of the TIV in 2023, MAA expects this yr’s TIV to achieve 650,000 models, which is sort of 10 % lower than 2022.
MAA said a number of components for its 2023 forecast. First of which is international financial system development is predicted to decelerate and will even fall right into a recession this yr.
The Worldwide Financial Fund (IMF) had forecasted that international financial development would sluggish from 3.2% in 2022 to 2.7% in 2023.
Regardless of the difficult international financial surroundings, the Malaysian financial system is predicted to broaden by 4 to five% in 2023.
The push to ship many backlog orders exempted from the gross sales tax earlier than the tip of March 2023 might present impetus to develop gross sales significantly in passenger automobiles class in 1Q2023.
The Introduction of latest fashions, significantly new EVs at extra inexpensive and aggressive costs, will entice and maintain shopping for curiosity amongst customers.
Financial institution Negara Malaysia (BNM)’s determination to extend the benchmark In a single day Coverage Fee (OPR) by 25 foundation factors to 2.75 % and the concern of additional improve in OPR this yr (to handle inflationary strain) might dampen shopper confidence.
And lastly, the automotive business continues to face challenges and provide chain points similar to scarcity of semiconductors chips, uncertainties in geo- political stress, potential resurgence of Covid-19 circumstances worldwide, and so on. which can have an effect on the nation’s financial development momentum and in flip the gross sales of latest automobiles.
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