Automotive sector

The automotive sector goes full throttle in the last lap

KUALA LUMPUR: The sluggish performance of the automotive sector for most of this year due to market uncertainties caused by the Covid-19 risk and the enforcement of the Movement Control Order (MCO) has finally accelerated to full steam in the last quarter (Q4) of 2021.

Auto factories and original equipment manufacturers (OEMs) have ramped up vehicle production and deliveries to meet backlogs and new orders as showrooms gradually resume operations after the nationwide lockdown was lifted in August.

The first full month of restored market conditions after the MCO was productive for domestic automakers and several OEMs as the local auto ecosystem, production and exports picked up momentum.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) vehicle delivery increased 102% month-on-month (mom) to 14,160 units in September from 6,988 units in August, the supply situation s gradually improving, while Proton Holdings Bhd (Proton) recorded 10,380 units. sales to retain its second place in Malaysia’s automotive sales rankings.

Perodua broke new monthly sales and its own production records with registrations of 27,858 vehicles in October, while Proton sold 13,362 units.

“We are honored by this achievement and are now confident to end the year with increased total sales,” said Proton Edar Sdn Bhd Managing Director Roslan Abdullah.

The highest sales month in Perodua’s history was accompanied by improved production and rapid deliveries of vehicles to customers, with the automaker aiming to deliver as many vehicles as possible in the fourth quarter of 2021.

UMW Toyota Motor, which ranked third in car sales in Malaysia, also saw a recovery in sales after the easing of comprehensive MCO restrictions with sales of 8,500 units recorded in October, an increase of 5.8%. compared to 8,033 units sold in September.

Based on the breakdown of total new vehicle sales by brand through October 2021 by the Malaysian Automotive Association and CGS-CIMB Research, Perodua tops the list with a market share of 38.4%, followed by Proton (22%), Toyota (14.1%), Honda (9.8%), Nissan (2.4%), Mazda (2.1%), Isuzu (1.9%) and BMW (1. 2%).

For November, Perodua recorded 20,299 sales (minus 27.1% mum) as intermittent disruptions from Covid-19 cases and shortages of semiconductor chips reportedly impacted its production.

The compact-car maker, however, is aiming for its highest ever monthly record for December with at least 30,000 units registered as it aims to end the year with more than 200,000 units sold.

Perodua Chairman and CEO Datuk Zainal Abidin Ahmad said, “We are working with the automotive ecosystem to overcome issues such as the increase in Covid-19 cases as well as the shortage of chip supply. semiconductors.

“With these countermeasures in place, we consider December 2021 our best month yet.”


Meanwhile, Proton’s overall November sales of 14,187 units (both domestic and export) pushed its year-to-date numbers to 100,566 units, suggesting the company will be able to end the year with positive sales growth.

“Crossing the 100,000 unit threshold one month from the end is a highlight for us after another year disrupted by Covid-19.

“We are honored by this achievement and are now confident to end the year with an increase in total sales,” Proton Edar Sdn Bhd Managing Director Roslan Abdullah reportedly recently said.

All in all, 2021 has been a difficult year for the automotive sector, not only for manufacturers but also for consumers.

For most of the year, there were fewer vehicles on the roads and highways due to travel limitations, capacity restrictions in place and stricter conditions for interstate travel outside of the emergency, as businesses halted for many months during the first cycle of the Movement Control Order (MCO) period, reimposition of MCOs and nationwide lockdowns in response to surging cases of Covid-19. — Bernama

As consumer demand improved alongside the easing of Covid restrictions in the third quarter, manufacturers faced disruption issues related to the pandemic and supply chain issues, exacerbated by the shortage of semiconductors which is a worldwide phenomenon affecting several sectors, affecting both production and sales.

2021 also saw limited new launches and model updates or facelifts.

Notable events in 2021 include the launch of Perodua Ativa, Hyundai Staria, Hyundai Kona Electric, Toyota Corolla Cross, BMW iX, Volkswagen Arteon facelift, Proton Pesona and Iriz facelift, Perodua Myvi facelift and the all-new Honda City Hatchback.

Moving into next year, the government, through Budget 2022, extended the current Sales and Services Tax (SST) exemption for new vehicles under the National Economic Recovery Plan (Penjana ) until June 30, 2022.

The Penjana scheme provides 100% sales tax exemption for passenger vehicles, sport utility vehicles (SUVs) and multi-purpose vehicles (MPVs) completely knocked down (CKD), as well as exemption from 50% sales for Completely Built Vehicles (CBU) passenger vehicles, SUVs and minivans.

Bank Negara, meanwhile, at the last meeting of its monetary policy committee in 2021 on November 3, kept the overnight rate at 1.75% after taking into account the economic growth outlook of Malaysia amid continued concerns over the Covid-19 pandemic.

Malaysia’s total auto industry volume, which has hovered around 500,000 units per year, is expected to be supported next year by the low interest rate environment, coupled with the extension of the Penjana tax exemption. and supportive government policies to boost domestic demand.

The government, through the 2022 budget, also aimed to boost the electric vehicle (EV) sector with full exemption from import duties, excise duties and sales tax from next year.

100% road tax exemption will be given to purchasers of EVs along with income relief for individuals up to RM2,500 on the cost of purchase, installation, rental, hire-purchase , as well as subscription fees for electric vehicle charging facilities.

The incentives also include a 100% duty waiver for CBU electric vehicles until December 31, 2023 and a 100% duty waiver for CKD electric vehicles until December 31, 2025.

All of these, advancing with the national aspiration for low-carbon mobility targets and the green mobility agenda, as set out in Malaysia’s 12th plan, are expected to catalyze demand and electrify industry’s transition to the electric vehicle segment, and accelerate Malaysia’s journey to carbon neutral status by 2050. — Bernama