Latest news with #MalaysianAutomotiveAssociation
The Sun
12 hours ago
- Automotive
- The Sun
Auto sector to have minimum impact from SST expansion
KUALA LUMPUR: CIMB Securities Sdn Bhd has projected the upcoming Sales and Service Tax (SST) expansion in July 2025 to have a limited direct impact on the automotive sector. In a research note, it said vehicle sales are already subject to a 10 per cent sales tax, while maintenance and repair services incur an 8.0 per cent service tax. 'That said, there may be a slight increase in dealership and showroom rental costs due to the measure, although we believe the impact will be minimal. 'Indirectly, however, weaker consumer sentiment could weigh on new vehicle sales in the second half of 2025 (2H 2025),' it said. The Malaysian Automotive Association (MAA) has reportedly projected a 4.5 per cent year-on-year (y-o-y) decline in total industry volume (TIV) to 780,000 units in 2025, attributing this to demand normalisation and a reduced industry order backlog. CIMB Securities has, however, forecasted a sharper 7.0 per cent y-o-y decline in TIV to 760,000 units, due to potential headwinds from the planned removal of the RON95 petrol subsidy in 2H 2025, which Prime Minister Datuk Seri Anwar Ibrahim has affirmed will proceed as part of the government's subsidy rationalisation. 'Despite this, we expect demand in the sub-RM100,000 segment to remain resilient, supported by national brands and selective entry-level Japanese models. 'We project national brands to retain a dominant 64.5 per cent market share in 2025, with non-national marques accounting for the remaining 35.5 per cent,' it said. CIMB Securities also believed the removal of fuel subsidies could accelerate battery electric vehicle (BEV) adoption. BEV sales nearly doubled y-o-y in 1Q 2025 to 5,394 units from 2,703 units a year ago, with combined BEV and hybrid penetration rising 1.9 percentage points y-o-y to 7.3 per cent. 'With full duty exemptions for imported electric vehicles (EVs) set to expire by end-2025, and the government unlikely to extend it beyond the Dec 31, 2025 deadline, we expect a potential spike in EV demand in 4Q 2025 as buyers rush to benefit from tax savings,' it said. CIMB Securities has maintained its 'Neutral' rating on the sector due to a subdued growth outlook amid intensifying market competition.
The Sun
12 hours ago
- Automotive
- The Sun
Auto sector to have minimum impact from SST
KUALA LUMPUR: CIMB Securities Sdn Bhd has projected the upcoming Sales and Service Tax (SST) expansion in July 2025 to have a limited direct impact on the automotive sector. In a research note, it said vehicle sales are already subject to a 10 per cent sales tax, while maintenance and repair services incur an 8.0 per cent service tax. 'That said, there may be a slight increase in dealership and showroom rental costs due to the measure, although we believe the impact will be minimal. 'Indirectly, however, weaker consumer sentiment could weigh on new vehicle sales in the second half of 2025 (2H 2025),' it said. The Malaysian Automotive Association (MAA) has reportedly projected a 4.5 per cent year-on-year (y-o-y) decline in total industry volume (TIV) to 780,000 units in 2025, attributing this to demand normalisation and a reduced industry order backlog. CIMB Securities has, however, forecasted a sharper 7.0 per cent y-o-y decline in TIV to 760,000 units, due to potential headwinds from the planned removal of the RON95 petrol subsidy in 2H 2025, which Prime Minister Datuk Seri Anwar Ibrahim has affirmed will proceed as part of the government's subsidy rationalisation. 'Despite this, we expect demand in the sub-RM100,000 segment to remain resilient, supported by national brands and selective entry-level Japanese models. 'We project national brands to retain a dominant 64.5 per cent market share in 2025, with non-national marques accounting for the remaining 35.5 per cent,' it said. CIMB Securities also believed the removal of fuel subsidies could accelerate battery electric vehicle (BEV) adoption. BEV sales nearly doubled y-o-y in 1Q 2025 to 5,394 units from 2,703 units a year ago, with combined BEV and hybrid penetration rising 1.9 percentage points y-o-y to 7.3 per cent. 'With full duty exemptions for imported electric vehicles (EVs) set to expire by end-2025, and the government unlikely to extend it beyond the Dec 31, 2025 deadline, we expect a potential spike in EV demand in 4Q 2025 as buyers rush to benefit from tax savings,' it said. CIMB Securities has maintained its 'Neutral' rating on the sector due to a subdued growth outlook amid intensifying market competition.
The Star
18 hours ago
- Automotive
- The Star
Auto sales likely to ease
RHB Research maintained its 2025 vehicle sales forecast at 730,000 units. PETALING JAYA: The automotive sector's total industry volume (TIV) rose by 12.4% month-on-month in May, reaching 68,007 units compared with 60,527 units in April. In a statement, the Malaysian Automotive Association (MAA) said the higher TIV was due to more working days in May compared with April, ongoing strong promotional activities and the delivery of vehicles from bookings made in the first quarter of 2025. However, on a year-on-year basis, MAA said the TIV fell by 3.2% from the 70,254 units recorded in May 2024. MAA noted that a total of 65,970 vehicles were produced in May, down 11.6% from the same month last year. 'TIV for June is expected to be lower than May due to a one-week plant shutdown during Hari Raya Aidiladha by major makes,' MAA said in its outlook for June. Meanwhile, RHB Research said auto sales momentum is expected to ease further in the coming quarters due to the lack of catalysts, softening order backlogs and a high base effect from 2024. The research house maintained its 2025 vehicle sales forecast at 730,000 units, representing an 11% year-on-year (y-o-y) decline from the record high of 816,747 units last year. 'We do not see any compelling catalysts for 2025 auto sales to be maintained at elevated levels,' it said. RHB Research noted that its forecast aligned with the year-to-date April TIV of 248,700 units – a 5% y-o-y drop – which made up 34% of its full-year assumption. The research house remained cautious on the sector, citing 'ongoing price competition in the non-national segment and softening order backlogs.' 'We anticipate TIV to soften y-o-y in the second quarter of this year (2Q25), due to the declining order backlogs, shorter working quarter as a result of the long festive holidays, as well as scheduled factory maintenance shutdowns by major carmakers.' While the expiry of tax exemptions for fully imported electric vehicles (EVs) after 2025 could lead to a short-term spike in EV sales, RHB Research said the impact on overall TIV would be minimal. 'The local EV market remains modest, accounting for about 2% of total car sales. Hence, it is unlikely that a surge in EV demand would materially move the TIV needle in 2025,' it said. In line with its 'cautious' outlook, RHB Research has maintained its 'neutral' call on the sector. 'We maintain our sector weighting –premised on a lack of catalysts to drive sales and earnings to new highs.' RHB Research said sector earnings for 1Q25 were largely underwhelming, with two out of four companies under its coverage – Sime Darby Bhd and Tan Chong Motor Holdings Bhd – coming in below expectations, while MBM Resources Bhd and Bermaz Auto Bhd were in line. Despite the miss, Sime remained its sole 'buy' call within the sector, supported by robust mass-market brand contributions from Perusahaan Otomobil Kedua Sdn Bhd or Perodua and Toyota Motor Corp. 'Automotive sales volumes may slow, but solid contributions from mass-market brands – Perodua and Toyota – should cushion the impact (for Sime).' On the policy front, RHB Research highlighted that the rationalisation of the RON95 fuel subsidy is set to proceed as reaffirmed by the prime minister. 'While details remained limited, earlier indications may point to a rollout in the second half of 2025. 'Nonetheless, we believe the policy will raise vehicle ownership costs. This could accelerate EV adoption or lead some consumers to downtrade, especially given the limited affordable EV options. 'Public transport may gain traction as an alternative, but much will depend on how the policy is executed,' it added.
Yahoo
a day ago
- Automotive
- Yahoo
Malaysia vehicle market falls 3% in May
Malaysia's new vehicle market declined by 3% to 68,007 units in May 2025 from 70,254 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA). Economic growth in the country slowed to 4.4% year-on-year in the first quarter of 2025 from a downwardly revised 4.9% growth in the fourth quarter of 2024, reflecting slowing export growth and slightly weaker domestic consumption growth. Malaysia's central bank has kept its benchmark interest rate unchanged at 3.0% for the last two years. In the first five months of 2025 the market declined by 5% to 316,737 units, from record sales of 333,309 units in the same period last year. Light passenger vehicle sales fell by 3% to 295,213 units in this period while commercial vehicle sales plunged by 23% to 21,524 units. Separate industry data showed that sales of battery electric vehicles (BEVs) increased by 59% to 13,871 units year-to-date, driven mainly by China's BYD Auto and its Denza brand with 4,880 units combined, and the recently-launched Proton with 3,400 sales, while Tesla sold 1,810 units. Total vehicle production in the country fell by 12% to 299,886 units in the five-month period. Market leader Perodua reported a 1.5% decline to 143,860 units year-to-date, slightly outperforming the overall market. Proton's global sales fell by 4% to 60,187 units in the first five months of 2025, including 1,327 units exported. The Saga was by far its best-selling model with 26,511 sales, followed by the Geely-based X50 compact SUV with 9,704 units, and the Geely-based S70 sedan with 7,944 units. The company confirmed that production of the Saga began at its CKD plant in Egypt in February, with the aim of supplying markets across North Africa. "Malaysia vehicle market falls 3% in May" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Malaysia Sun
2 days ago
- Automotive
- Malaysia Sun
Malaysia's car sales down on year in May
Xinhua 18 Jun 2025, 17:15 GMT+10 KUALA LUMPUR, June 18 (Xinhua) -- Malaysia's car sales slipped 3.2 percent year-on-year to 68,007 units in May, bringing the total industry volume (TIV) in the first five months fell 4.97 percent to 316,737 units. The Malaysian Automotive Association (MAA) said in a statement on Wednesday that the TIV for May was 12.4 percent higher than 60,527 units in April. According to the MAA, the higher TIV is attributed to a higher number of working days in May compared to April, continued strong promotion activities, and delivery of vehicles from bookings collected in the first quarter. In terms of car production, the volume in May fell 11.58 percent year-on-year to 65,970 units. The car production for the first five months also dropped by 12.4 percent to 299,866 units. "TIV for June is expected to be lower than May due to a week-long plant shutdown during Eid al-Fitr by major makes," the MAA said.
