MAA forecasts 8% rise in TIV for 2021 – 570,000 units

The Malaysian Automotive Association (MAA) says it is optimistic that the local automotive market will rebound in 2021, and has confidently forecast that the total industry volume (TIV) will grow by nearly 8% from 2020, in which 529,434 units were shifted.

Buoyed by the industry’s performance in the second half of 2020, where strong demand and sales ensured that the final TIV surpassed the 470,000-unit forecast made earlier in the year, the association is projecting a TIV of 570,000 units for 2021. Passenger vehicles are expected to deliver 513,000 units out of the total.

In delivering the bullish forecast, it said that a number of economic and environmental factors were taken into account, among them the continuation of the sales tax (SST) exemption for passenger vehicles under the Penjana stimulus package, which was supposed to have ended on December 31 last year but has been extended until June 30.

MAA forecasts 8% rise in TIV for 2021 – 570,000 units

This, along with continued promotional campaigns by car companies to push sales and to maintain market share as well as lower hire purchase loan interest rates, will help sustain buying interest, the association added.

The MAA also offered a forecast of the TIV going into 2025. It said that by 2022, it anticipates that the yearly volume will return to that of 2019, in which 604,281 units were sold (the latter figure is slightly revised from the 604,287 units reported at the start of last year).

In 2023, this will climb to 622,300 units, and the roughly 3% growth is projected to continue in 2024, with 641,600 units being the TIV forecast for that year. By 2025, this is expected jump to 662,100 units, effectively bringing the TIV back to the level last seen in 2014 and 2015.

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