We’re two weeks in following the rollback of the Goods and Services Tax (GST), a move which saw car prices fall by a considerable margin thanks to the zero-rated tax. Now, sales for passenger vehicles may jump as high as 50% during this “tax holiday” period, according to The Malaysian Reserve.
The observation was made based on the public’s interest in cars within the past week. Proton’s vice president of sales and marketing, Abdul Rashid Musa said car bookings and dealership visitations have risen 50% for the national automaker, and the pull factors include the new tax rate and Hari Raya promotional campaign.
“We are seeing an increasing interest among consumers with more bookings and number of dealership visitations. However, the true effect of the 0% GST would only be known by July onwards after the Hari Raya season ends,” Abdul Rashid told the publication. Currently, the Proton Saga and Persona are leading in terms of booking numbers, he said.
Mazda echoed this sentiment, with Bermaz Auto executive director, datuk Francis Lee saying that the bookings for Mazda cars have been increasing on a daily basis and throughout the model line-up. “We will collect as many bookings as we can and will see how we will deal with it when the Sales and Services Tax comes in,” he said, adding that the CX-5 SUV is the company’s best-selling model to date.
It’s the same for Volkswagen as well – Volkswagen Passenger Cars Malaysia’s (VPCM) managing director Erik Winter expects sales to increase by 50%. He said the sales and bookings have been very encouraging since June 1, and that demands have increased across all models, particularly for the Tiguan and Passat.
Frost & Sullivan, an industry consulting firm said in a statement the rollback of the GST would create a huge positive impact on consumer sentiment, which should translate into overall vehicle demand and shore up the total industry volume (TIV). This trend can also be seen in the premium segment, with Mercedes-Benz receiving greater demand for its car models and higher showroom traffic.