The Inland Revenue Board of Malaysia’s (LHDN) e-invoicing initiative, due to come into force on August 1, is set to have a major impact on new car purchases, given that it will essentially outlaw 100% loans (or “full loans”) that are common in the industry. Despite this, the Malaysian Automotive Association (MAA) does not expect the scheme to adversely affect sales figures.
Speaking to media during the Q&A session at yesterday’s market review event, president Mohd Shamsor Mohd Zain said this is because Bank Negara has already set a minimum downpayment amount that car companies and banks need to abide by.
He added that to get around this, many financial institutions have introduced various flexible financing options, including step-up financing, to make car purchases more affordable without resorting to full loans. “I’m sure that once [e-invoicing] is up, there will be new programmes and packages that banks will introduce,” Mohd Shamsor said.
Additionally, certain banks appear to be still able to offer 100% loans to government staff, Mohd Shamsor added. Ultimately, MAA sees the e-invoicing scheme as a good step from LHDN. “We feel that the implementation of e-invoicing will bring positive changes in terms of efficiency and transparency.”
Despite this potential headwind, MAA has seen fit to not just maintain its original sales forecast of 740,000 vehicles for 2024 but revise it upwards to a new target of 765,000. This comes after it recorded strong first-half sales of 390,296 units, a 6.6% increase over last year’s already record-breaking performance.
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