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KUALA LUMPUR: July automotive sales are anticipated to remain strong, as bookings for new vehicles have remained steady post the expiry of the tax holiday.
While sales for the month are not expected to be as stellar as June, which was when the tax holiday ended, analysts said the strong July bookings still signalled solid sales momentum for the local automotive sector.
“Many auto companies are still reporting solid sales performances despite the expiry of the tax holiday. While bookings for July may not be as high as June, it’s still better than expected,” said an analyst.
Vehicle sales surged more than 100% year-on-year to 63,366 units in June 2022, mainly due to the low base effect as a result of the disruptions caused by the nationwide lockdown last year.
Another analyst said the strong sales momentum has been sustained by new model launches. “With the expiry of the tax holiday, car companies are more aggressive than ever to maintain their sales momentum, with many introducing new and exciting models,” he told StarBiz.MIDF Research analyst Hafriz Hezry said Perusahaan Otomobil Kedua Sdn Bhd (Perodua) managed to garner around 24,265 new bookings last month despite the expiry of the sales tax exemption in June.,
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“We gather that this is on top of the 243,000 outstanding bookings announced last month.
At Proton, Its Proton X50 was the best-seller, hitting a monthly sales record of 4,763 units for July 2022 to be the best-selling vehicle in Malaysia and retaining the number one position in the sports-utility vehicle segment.
“The strong July bookings still signals steady sales momentum, which we think is partly driven by the recent launch of the new Alza and broadly, the pent-up demand amid a gradually improving labour market in line with the macroeconomic recovery,” he said in a recent research note.
Hafriz pointed out that the new Alza was launched on July 20 and has already received some 39,000 bookings, with an estimated 9,000 bookings collected in July.
He said this was significantly higher than the company’s monthly sales target of 3,000 units.
“While Perodua’s July total industry volume (TIV) is expected to be slightly weaker than June, given the residual chip supply issues, it is understood that the company is attempting to increase production to around 26,000 units per month in the second half of 2022 in order to shorten its waiting list.”