The Malaysian Automotive Association (MAA) has released vehicle sales data for the month of July 2020, and the month saw further improvement in car sales, no doubt heavily spurred on by the 100% sales tax (SST) exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models announced by the government under the Penjana economic stimulus plan.

Sales in July amounted to 57,552 units, an increase of 12,857 units or 28.8% from the 44,695 units managed in June. As it was last month, the 2020 volume for July is also higher, by 13%, than the 50,584 units managed during the corresponding period last year.

As for year-to-date numbers, the 232,245 units sold up to July is still 114,926 units behind that accomplished for the similar period in 2019, when 347,171 units were shifted. However, the association is expecting numbers to climb as a result of the SST measures, so the overall volume is expected to make up ground in the second half of the year.

While the yearly TIV will still fall short of the 607,000 units initially projected before Covid-19 rolled into town, its revised forecast is targeting sales in 2H to be in the region of 300,000 units, effectively the same pace as that of the second half of 2019.

The association said that the sales increase in July was due to the SST exemption as well as aggressive promo campaigns by car companies. It expects the sales volume in August to be maintained at July levels, with the sales tax holiday continuing to encourage people to shop for cars, and on-going promotions providing further allure.