2020 SST Exemption Archive

  • Gov’t says no to MAA request for SST exemption to be extended to June 2021 – sales tax to resume on Jan 1

    The government says that there will be no extension to the new vehicle sales tax exemption beyond the stipulated period, which is December 31. The 100% sales tax exemption for locally-assembled passenger cars (CKD) and 50% for fully-imported models (CBU) was announced under the Penjana economic stimulus plan, and has been in place from June 15.

    This was revealed in a document issued by the ministry of finance in response to a request from the Malaysian Automotive Association (MAA) for the SST exemption to be continued until June 30, 2021. The association had written in to the ministry twice, on October 16 and December 7, asking for an extension.

    In its reply dated yesterday, December 23, the ministry said that while the finance minister has given the matter due consideration, the decision has been made to not extend the SST exemption period for another six months, confirming what MAA president Datuk Aishah Ahmad said to us earlier today. “With regards to the SST exemption, MAA has received a rejection letter on the extension of SST after December 31, 2020,” she told paultan.org.

    With this, the sales tax for all new vehicles sold in the country will be re-incorporated into the vehicle selling price from January 1. However, there is an allowance for passenger vehicles that have been invoiced for sale by December 31 to remain exempt from SST, but the registration for these must be completed by January 31, 2021.

     
     
  • Vehicle sales performance in Malaysia, Q3 2020 versus Q3 2019 – market slows, but SST exemption kicks in

    In August, the Malaysian Automotive Association (MAA) announced that it was changing the format in which vehicle sales data is reported to subscribers, switching the frequency from a monthly basis to quarterly, effective from mid-year.

    The association released its Q3 2020 data earlier this week, and we’ve reported on the sales breakdown by brand for the months of July, August and September. Now, we take a look at how brands have fared in the first nine months of the year, compared to the same period in 2019.

    It’s no surprise to find that things haven’t been all that rosy in 2020, as reflected by the sea of red arrows and digits in the accompanying chart. The ravages caused by Covid-19 have been far reaching, both psychologically and economically.

    On the automotive front, the numbers would likely be far less than that seen below had the government not announced a SST exemption on the sales of new CKD and CBU cars – until December 31 – to aid the segment.

    As things stand, total year-to-date sales for 2020 is at 341,489 units in the first nine months, which is 101,502 units or 22.91% less than the 442,991 units accomplished in the corresponding period last year.

    Nonetheless, the third quarter performance has been strong, and has regained a fair bit of ground for this year’s total industry volume (TIV), if you consider that at 1H the TIV stood at just 174,675 units, which was 121,642 units or 41.1% less than the 296,317 units achieved in 1H 2019.

    If vehicle sales continue at the pace as seen in the past three months and production/supply can keep up, there should no issue meeting the 300,000 sales target set by the MAA for the second-half of the year. As it stands, total registrations in Q3 amounted to 166,796 units (57,552 units in July, 52,800 units in August and 56,444 units in September).

    The Q3 numbers also suggest that the the industry will easily meet the current 2020 TIV target of 470,000 units that was announced in July, up from the previously-revised 400,000 units MAA had set in May following the coronavirus outbreak and resulting movement control order (MCO). Just over 128,000 units have to be sold in the last three months of the year to reach that goal.

    On to the specifics. Market leader Perodua saw its sales contract by 18.88% to 145,012 units from the 178,754 units it managed up to September 2019. Its market share however grew by 2.1% to 42.5% from the 40.4% slice of the pie it had last year. Its revised sales target of 210,000 units for the year should be easily met, if its performance in September – where it recorded its best-ever monthly sales in its history – is any indication.

    Only five companies saw a better first nine months this year than in 2019, and two of these were commercial players. In the category which we’re all intent on, Proton was the only major brand to show growth. It managed 73,547 units into September, 5.19% higher than the 69,920 units it achieved in the same period last year.

    Its market share has also increased from 15.8% in Q3 2019 to 21.5% this year, and notably, national brands now have 64% of the market share. With its new X50 SUV set to hit the showrooms at the end of the month, the last two months looks full of promise for the brand.

    In Q1, Honda was ahead of Toyota, but the latter has now overtaken it into third in the overall standings. While Toyota’s sales are 22.63% lower than last year, its 36,384 units managed so far this year puts it ahead of Honda’s 34,655 units, which is 46.79% less than the 47,608 units it did up to Q3 last year.

    Nonetheless, the fight for third isn’t done and dusted, because Honda outperformed Toyota last month, and the race to the tape still has three months to be counted. However, we really won’t know until early next year how both have finished, because the actual sales breakdown will only be known when the next data set for Q4 (October to December) is circulated in January 2021.

    Elsewhere, others showing significant year-on-year contractions included Nissan (-41.52%), Peugeot (-43.91%), Kia (-78.03%) and Subaru (-76.43%). As for gainers, the two other brands in the passenger car segment that showed growth in a soft year have been Porsche, which has sold 261 cars so far in 2019, up by 1.56% from the 257 units it did in 2019, and Jaguar, which now has 25 registrations this year, a 56.25% increase from the 16 cars it sold up to Q3 2019.

    Finally, mention has to be made about Mercedes, BMW and MINI numbers and the high percentage drop for them in the chart. Mercedes-Benz has stopped reporting its numbers since the earlier part of the year, and BMW – together with MINI – had said it was switching to reporting on a quarterly basis. However, it looks like it too has stopped reporting numbers, because Q3 has come and there is no update in sight.

    Click to enlarge.

     
     
  • Gov’t urged to extend car SST exemption to June 2021

    The government should consider extending the new vehicle sales tax exemption period until June next year, as this will continue to aid the local economy recovering from the effects brought about by the Covid-19 pandemic.

    According to Proton Edar CEO Roslan Abdullah, an extension of the tax exemption period is the most appropriate measure to drive car sales and help towards a positive total industry volume (TIV) in the coming year. “We in the automotive industry really hope the government can consider extending the tax exemption by another six months, or at least until March next year,” he said when interviewed by Berita Harian recently.

    He said the tax exemption has had a very encouraging impact on sales in the first three months, allowing the industry to recover losses incurred during the movement control order (MCO) period.

    “In fact, the automotive industry has minimised retrenchment and some are still paying the same salaries as before the pandemic appeared. An extension of the tax exemption can further improve operations and ensure that manpower can be maintained,” he said, adding that such a move will also support the entire automotive and industrial supply chain, not just automakers.

    The 100% sales tax exemption for locally-assembled passenger cars (CKD) and 50% for fully-imported models (CBU) announced under the Penjana economic stimulus plan runs until December 31. The industry has recorded strong sales numbers in the months since the SST exemption was announced, and the Malaysian Automotive Association (MAA) believes that the measures are good enough for a 70k increase in vehicle sales during the second-half of the year.

     
     
  • 2020 SST exemption: BMW Malaysia updates its price list – 5 Series up to RM10,331 cheaper; some increases

    BMW Malaysia has released an updated price list that now includes not only newly launched models, but also cars that weren’t found in the earlier list. We also noticed some price changes for certain models, which we will get into later on. These prices will remain in effect until December 31, 2020 and reflect the sales tax relief for private vehicles announced by the government back in June this year.

    Newcomers to the list include the 1 Series, which is available in a sole M135i xDrive variant that goes for RM355,646 with the sales tax exemption, otherwise it goes for RM368,800. The M2 Competition that was introduced last year also benefits from the SST relief, retailing at RM608,867 instead of RM631,800 – a RM22,933 or 3.63% drop.

    The regular, non-M 5 Series range also appears here, as it was absent previously. Of the three offered variants – 520i Luxury, 530e M Sport and 530i M Sport – it is the first one that sees the most savings, down RM10,331 or 3.14% from RM328,800 to RM318,469. Coming in second is the 530i M Sport, which goes for RM363,756 (RM9,044 less), while the plug-in hybrid variant is RM5,107 less at RM333,693.

    Further down the list, the X1 sDrive18i, X3 M, X4 M, M8 Coupe and M8 Gran Coupe all follow the pricing stated in their respective launch stories, so there’s nothing different except that they are now bundled into the same list.

    Click to enlarge

    However, the 6 Series GT does receive a revision, as it is now cheaper at RM418,131 without SST, compared to RM430,800 previously. It’s a different story for the X1 sDrive20i M Sport, which now goes for RM230,410 without SST, up from RM225,410.

    The same can be said of the X3 xDrive30i M Sport that is now priced at RM324,164 without SST, up from RM319,164 as listed in the earlier price list. Lastly, the Z4 now goes for RM469,510 without SST instead of RM464,510.

    You’ll also notice a few BMW models listed without SST-exempted pricing, with some of them being discontinued models like the F82 M4, the pre-facelift F90 M5 and both versions of the i8. The X2 in both sDrive20i M Sport and M35i guises are also seen without SST-exempted pricing.

     
     
  • 2020 SST exemption: MINI Malaysia releases updated price list – up to RM13,997 cheaper until December 31

    MINI Malaysia has released a new and updated price list, which now covers a few more models. These include the 3 Door Cooper SE and John Cooper Works GP, both of which were launched recently, as well as the Cooper S Convertible Sidewalk Edition and 2019 model year Countryman variants.

    As before, these prices will remain in effect until December 31, 2020, and take into account the government’s reduction of sales tax (SST) for cars, which sees a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models.

    Compared to the earlier price list, there doesn’t appear to be a lot different in terms of figures. Starting with the 3 Door, the Cooper S goes from goes from RM249,888 to RM240,777, a drop of RM9,111 or 3.65%. The 3 Door John Cooper Works has been reduced from RM313,888 to RM302,831, a reduction of RM11,057 or 3.52%.

    The new John Cooper Works GP is as per what was written in our original launch story, and remains the most expensive MINI you can buy. With SST, the hot hatch is priced at RM388,888, but drops to RM377,471 with the rebate. Similarly, the all-electric Cooper SE goes for RM218,381 sans SST, down from RM225,888.

    Click to enlarge

    Progressing down the list, the Convertible, 5 Door and Clubman see no changes, and that includes the Sidewalk Edition launched in July that goes for RM285,899 without SST, instead of RM295,888.

    On the Countryman, you’ll notice the 2019 model year Pure and Sport variants and their 2020 model year equivalents are the same in terms of price with SST. However, after discounting for SST rebates, the 2019 MY variants cost more than the 2020 MY variants, which we’re told is due to the change in transmission – eight-speed auto to seven-speed DCT – requiring a different sales tax exemption calculation applied to both model years.

    Previously, the 2019 model year Pure and Sport variants weren’t listed, and the same can be said of the Cooper S E All4 plug-in hybrid with the Wired package, which goes for RM258,870, down by RM10,018 or 3.73% from the SST-inclusive price of RM268,888.

     
     
  • MAA anticipates a 70,000 spike in car sales with SST exemptions – sets 300k target for second half of 2020

    Back in May, the Malaysian Automotive Association (MAA) announced that it was revising its total industry volume (TIV) forecast for 2020, lowering it from the 607,000 units it had initially projected in January to 400,000 units (360,000 passenger vehicles, 40,000 commercial).

    The revision was made taking into account the anticipated impact that Covid-19 and resulting movement control order (MCO) would have on the local automotive industry going into the end of 2020. At that point, sales – and consumer sentiment – was severely impacted, and with the uncertainty then, it wasn’t a surprise to see the forecast being slashed.

    The situation has changed quite a bit since the revised forecast was issued in May. While Covid-19 hasn’t been completely licked, the reopening of the economy has been progressing well enough. On the automotive front, the SST exemption on the sales of new CKD and CBU cars until December has given the association much reason to believe that 2020 won’t be as bad as the May forecast suggested.

    Buoyed by the uptick in June sales, and with the promise of the SST tax holiday continuing to have a significant effect until the end of the year, the association has now revised its 2020 TIV forecast once again, this time to 470,000 units (427,700 PV, 42,300 commercial).

    Essentially, it believes that the relief measures announced under the Penjana economic stimulus plan is good enough for a 70k spike in vehicle sales during the second-half of the year. The revised MAA forecast mirrors the numbers suggested in April by research house MIDF Research, which projected that TIV for the year would be around 480,000 to 490,000 units with control restrictions going the long course.

    Interestingly, the TIV into June stood at 174,675 units, so the revised forecast is targeting sales in the second half of the year to be in the region of 300,000 units, which is effectively the same pace as that in the corresponding period last year. Sounds ambitious, but it’s obvious that the association believes that it’s well achievable with the sales tax exemption in place.

    Nonetheless, the revised TIV still represents a 22.2% contraction from the 604,287 units managed in 2019, and it looks very likely that this will be the first time in 13 years that the TIV has not breached the 500,000-unit mark.

     
     
  • SST Relief: Car sales on the up for Sime Darby Motors

    We are only a little over a week into the sales tax-free period, but it looks like there’s already a surge in demand for new vehicles – for Sime Darby Motors at least.

    Company retail and distribution managing director, Jeffrey Gan said: “The positive market response towards our recent sales campaign indicates that while many consumers may be cautious about returning to normal life, they also view personal vehicles as an important investment for their safety, and in maintaining social distancing.”

    “And with the added tax exemptions as an incentive, we are seeing signs of recovery as foot traffic and orders across all our brands in Sime Darby Motors are returning to pre-lockdown levels,” he added.

    Sime Darby Motors is represented by 27 branches, encompassing brands such as BMW, MINI, Motorrad, Volvo, Jaguar, Land Rover, Porsche, Ford, and Hyundai. There’s also the Sime Darby Auto Selection, offering a multitude of pre-owned vehicles.

    While things are on the up, the company says it’s adhering to the government’s recommended standard operating procedures, and ensures that basic hygiene and social distancing measures are practiced across the board.

    Gan said “we limit the number of customers at our premises depending on the size of the retail area to avoid overcrowding. The safety and health of our employees, customers and business partners remain our utmost priority.”

    Meanwhile, Sime Darby Motors has launched its Corporate Programme which entitles a company, its directors, employees and their spouses to enjoy fleet membership benefits, including discounts of up to 10% when buying a new car. The discount rate varies depending on the brand and model, and is only applicable when buying a minimum of two cars.

     
     
  • 2020 SST exemption: New Hyundai price list revealed – up to RM6,249 or 2.92% cheaper until December 31

    Hyundai-Sime Darby Motors (HSDM) has released its updated Hyundai price list following the government’s announcement to drop the sales tax (SST) for passenger cars, which sees a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models, effective until December 31.

    First off, if you don’t see a difference in prices for the Hyundai Elantra, Ioniq hybrid and Tucson SUV in the chart below, that’s because current stocks for those models are from 2019, and only 2020 manufactured cars will get the sales tax exemption. Unchanged official price aside, we’re pretty sure that a deal can be negotiated for those three MY2019 models.

    Click to enlarge

    Originally priced from RM171,888 to RM213,888 on-the-road without insurance, the CKD locally-assembled Santa Fe SUV is now going from RM166,974 for the 2.4 Executive to RM207,638 for the range-topping 2.2 Premium. That’s savings of between RM4,913 to RM6,249, or 2.86% to 2.92% in percentage terms.

    The yummy hot hatch that is the Hyundai i30 N, which is CBU imported from Europe, gets a price reduction from RM298,888 to RM293,797. That’s a difference of RM5,090, or 1.7%. There’s no change to the sticker prices of the Hyundai Grand Starex MPV, which is has a commercial status – like pick-up trucks, it may be used as a passenger vehicle, but the SST exemption bypasses commercial types.

     
     
  • 2020 SST exemption: New Audi price list revealed – up to RM31,066 or 3.6% cheaper until December 31, 2020

    In line with the government’s announcement to omit the sales tax (SST) for cars until the end of the year, Audi Malaysia has revealed the revised price list for its local model line-up. The move, which involves a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models until December 31, 2020, sees all Audi vehicle prices being reduced for the duration.

    The A3 Sedan‘s price of RM239,750 has been reduced by RM8,390 (or by 3.5%), and so the car now retails for RM231,360. The A5 Sportback sport 2.0 TFSI quattro, meanwhile, is now priced at RM327,680, a reduction of RM12,220 (3.59%) from its pre-SST exempt price of RM339,900.

    The savings continue up the A range of vehicles. The A6 Sedan now goes for RM568,927, which is RM20,973 (or 3.55%) less than before. As for the A7 Sportback, it now dips under the RM600k mark as a result of the tax cut, going for RM588,343, making it cheaper by RM21,557 (3.53%).

    Click to enlarge.

    The A8L Sedan gets the largest cut in pricing (although not in percentage terms), its RM879,900 selling price being revised to RM848,834, making it RM31,066 cheaper.

    Elsewhere, savings for the Q range of SUVs start from RM7,678 (-3.49%) for the Q2 sport, which sees its RM219,720 price being adjusted to RM212,042 until the end of the year. Next, the Q3 Advanced, which costs RM9,345 (3.46%) less than before. As for the Q5 sport 2.0 TFSI quattro, its RM339,900 OTR price has been revised to RM327,707, a reduction of RM12,193 (or 3.59%).

    Finally, the flagship SUV, the Q8 3.0 TFSI quattro, is now priced at RM701,699, making it RM26,201 (or 3.6%) cheaper. There’s no mention of the Q7 in the updated price list, but this should be corrected in due course – the facelift is expected, its arrival likely having been delayed due to the Covid-19 outbreak.

     
     
  • 2020 SST exemption: New Porsche price list revealed – up to RM47,609 or 3.9% cheaper until December 31

    Sime Darby Auto Performance (SDAP) has released its updated price list for Porsche models sold in Malaysia, which now benefits from the government’s recent announcement to drop the sales tax (SST) for cars. This sees a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models until the end of the year, the latter applicable in this case.

    The new prices will remain in effect until December 31, 2020, and sees price reductions of up to RM47,609, depending on the model. Keep in mind that the prices listed are based on standard specifications, excluding options, road tax and insurance.

    Starting with the entry-level Porsche sports cars, the 718 Boxster range now starts from RM486,727 for the base variant, which is RM13,273 (or 2.65%) less than before. Similarly, the more powerful Boxster S now goes for RM602,837, representing a decrease of RM17,163 (or 2.77%). The hardtop 718 Cayman range, which also consists of a base and S variant, sees savings of up to RM22,357 (or 3.29%).

    As for the venerable 911 line-up, the base Carrera S is now priced at RM1,105,335, making it RM44,665 (or 3.88%) less, while the Carrera 4S retails at RM1,172,391, which is a RM47,609 (or 3.9%) decrease.

    Click to enlarge

    More family-oriented models like the Panamera are now up to RM39,418 (or 3.55%) less than before, while the SUV duo consisting of the Cayenne and Macan are now up to RM32,685 (or 3.56%) less than before.

    To go along with the new price list, SDAP also announced a new financing scheme known as Porsche 360 Financing+ (available for the Macan), which is an extension of its current 360 Financing programme. This provides customers with a more flexible ownership option, with an even shorter financing tenure (from 12 months up to 60 months) and maximum financing of up to 90%.

    Starting from as low as RM 6,300 a month (five-year loan tenure with 90% financing), the new Porsche 360 Financing+ offers up to 30% reduced monthly repayments compared to conventional financing for the Macan.

    Customers will also have full control over the decision to either return (within the first 12 months of the loan tenure) or upgrade to a new Porsche without the worry of residual value through the assured resale value of the Macan.

     
     
 

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Last Updated 23 Jan 2021