HVGT, higher SST, targeted fuel subsidy to affect auto industry, 2024 Malaysian TIV down 19% – Maybank IB

HVGT, higher SST, targeted fuel subsidy to affect auto industry, 2024 Malaysian TIV down 19% – Maybank IB

Maybank Investment Bank is expecting the Malaysian automotive industry to be affected by the increase in the service tax rate and the implementation of the high value goods tax (HVGT) that will come into play in March and May respectively.

In a research note, the investment bank said the HVGT could impact premium vehicle sales, while the hike in the service tax rate from 6% to 8% is expected to add on to maintenance services and vehicle repair bills as well as vehicle insurance, increasing the cost of vehicle ownership, Bernama reports.

Another factor that could affect industry players is the planned targeted fuel subsidy mechanism, which is expected to be implemented sometime in the second half of the year. It said that after two consecutive record years of growth, the total industry volume (TIV) is projected to stabilise at 650,000 units in 2024, which is a 19% contraction from 2023’s numbers.

HVGT, higher SST, targeted fuel subsidy to affect auto industry, 2024 Malaysian TIV down 19% – Maybank IB

The research note added that the two key themes to watch for this year is the increasing trend towards adopting an agency model business and further acceleration of the transition to electric vehicles (EVs), with the country having emerged as an attractive destination for foreign direct investments (FDIs) from global automakers seeking to establish their regional headquarters or EV hubs here.

The investment bank said that the influx of FDIs is expected to have a positive long-term impact on the industry, contingent on the position of auto players in the supply chain. However, it added that local players in the production and distribution chain are anticipated to face intensified competition this year, which would have a potential impact on their margins.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Rakyat Malaysia on Feb 01, 2024 at 10:34 am

    This Gomen is all about taxing the rakyat and squeezing us until blood comes out. We must Change NOW!

    Like or Dislike: Thumb up 56 Thumb down 8
    • Nurul Izzah on Feb 01, 2024 at 10:43 am

      Anwar menang rakyat senang

      Like or Dislike: Thumb up 6 Thumb down 24
      • Amran on Feb 01, 2024 at 12:11 pm

        Rakyat PH dan kroni je senang, rakyat marhaen hidup lagi susah.
        #GantiPH

        Like or Dislike: Thumb up 22 Thumb down 3
        • Pakngah dulu Pas on Feb 01, 2024 at 7:24 pm

          Moodin Tower, Hadi Tower & Azmin Tower sorang satu… #DahSerik dengan PAS PN

          Like or Dislike: Thumb up 6 Thumb down 7
          • Rakyat Malaysia on Feb 02, 2024 at 8:35 am

            This is automotive blog not a tower blog. You want to talk about tower go some other blog. Tlg blah!

            Like or Dislike: Thumb up 3 Thumb down 1
  • Angry Voters on Feb 01, 2024 at 10:40 am

    No money to alleviate the rakyat’s rising cost of living but want to tax the rakyat for more money to bring back money losing F1 race and installing EV chargers for the rich subsidised playtoys to use.

    This is the true face of the PH Gomen laid bare in all its ugliness. And there are more shits behind this face.

    Like or Dislike: Thumb up 34 Thumb down 5
    • Tan Ah Biao on Feb 24, 2024 at 9:58 pm

      Seems like it’s your first day learning what’s inflation. The rich are the ones who can push the EV market. If not who push? People like you? Give you subsidy also you can only afford Axia. Talk so much for what?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Sohai on Feb 01, 2024 at 12:30 pm

    Only more taxes. That’s all I hear from this government.
    What else? I don’t feel anymore export advantage due to weak RM, no major boost in tourism, no real job creation.
    Traffic is still very much congested, flood during rain, and other days tap run dry. Public facilities like hospitals are so congested and breaking.
    Schools and education system have no real reform all we hear is school uniform related changes. The judiciary system is in no better shape than before.
    This gomen has a big cabinet, yet nothing tangible or long term plan and vision.
    Please appoint the right people to do work, not some political old timers that just enjoying perks

    Like or Dislike: Thumb up 32 Thumb down 1
  • Future on Feb 01, 2024 at 5:24 pm

    Once upon a time they said to reduce car price, reduce fuel cost, no tolls. Now, tax, tax, tax everything got taxed. Sad. This upcoming targeted fuel subsidy will hurt the most.

    Better bring back GST.

    Like or Dislike: Thumb up 20 Thumb down 2
    • Casual reader on Feb 01, 2024 at 10:24 pm

      Better bring back Najibs BN. We did not get all these bullshit from them.

      Like or Dislike: Thumb up 7 Thumb down 3
      • Tan Ah Biao on Feb 24, 2024 at 9:59 pm

        Yea let him create more debt for the country right? You think free and cheap things don’t come at a cost?

        Like or Dislike: Thumb up 0 Thumb down 0
 

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