The Malaysian automotive market in 2018 was saved by the three months Tax Holiday declared by the new government. With more than 200,000 units registered in the months of June, July and August, the TIV for 2018 saw a 3.92 per cent growth compared to 2017. Otherwise, looking at the cumulative performance of other than those three months, the total sales in 2018 was much lower than 2017. Thus, the higher sales recorded in 2018 was rather artificial and does not reflect the true picture of the market condition.
225,212 units were registered before the beginning of Zero Rated GST, 8,968 units lower than the same period in 2017. However, with strong sales performance in June, July and August, the accumulated sales up to end August was 423,730 units, 10.1 per cent higher than the same period a year before. When the Tax Holiday ends, total sales for September until end December was only 176,154 units, 15,761 units lower than the same period in 2017 marking a total Seles of 599,256 units for 2018, 22,622 units higher than a year before. Official result for December and 2018 TIV is pending to announcement by MAA.
Tax Holiday attracted high advance purchases due to extra ordinary lower OTR prices. As a result, the market failed to stay in positive momentum after August. This, probably will continue even in 1st quarter 2019.
National brand is expected to take 48.7 per cent of market share, 0.9 per cent better than 2017. Honda is likely to close with 102,351 units in 2018 and will continue to be the best-seller brand for Non-national at 17.1 per cent share despite a shortfall by 7,160 units in volume compared to 2017.
For December 2018, the performance was much lower than what was recorded every December in many years before. On top of the advance purchase during Tax Holiday, the supply condition of many OEMs were also low due to unexpected high delivery to fulfil the demand during the Tax Holiday. In managing the expectation, many OEMs also continue to subsidise the gap between the 10 per cent SST against the 0 per cent GST. It was a costly exercise and resulting to a smaller budget left for Year End Sales as compared to previous years.
The TIV for December 2018 is expected to close around 48,730 units, merely 1,820 units higher than November and 6,002 units or 11 per cent lower compared to the same period in 2017. This was the first time that the TIV for the month of December to be closed lower than 50,000 units since 2012.
Honda is expected to record 8.090 units, followed by Proton at third place with 5,830 units.
Honda is expected to record 8.090 units, followed by Proton at third place with 5,830 units.
Perodua on the other hand, continued to record stronger volume and share in 2018. Despite the halted Myvi production (Myvi contributed 50 per cent of Perodua monthly volume) for two months in August and September, Perodua managed to register 18,402 units, an equivalent to 37.8 per cent share in December and ending the year with 227,243 units or 37.9 per cent share, recording an annual growth of 10.9 per cent compared to 2017. Both , the total registration and annual market share marked new record high for Perodua since 1994.
For me, it has been an exciting yet challenging year from the perspective of car sales. There were many unfavorable influencers to the market but the unexpected declaration of Tax Holiday really changed the landscape of the market in 2018. I am blessed with the continuos supports to our brand and humbly thankful for making us still the market-leader for 13th years in a row.
Bye-bye 2018 and HAPPY NEW YEAR to all.
For me, it has been an exciting yet challenging year from the perspective of car sales. There were many unfavorable influencers to the market but the unexpected declaration of Tax Holiday really changed the landscape of the market in 2018. I am blessed with the continuos supports to our brand and humbly thankful for making us still the market-leader for 13th years in a row.
Bye-bye 2018 and HAPPY NEW YEAR to all.
