MAA: TIV up 33% in first half of 2022

The local automotive industry’s post-pandemic rebound sees it momentum continue in the first half of 2022. According to the Malaysian Automotive Association (MAA), the Total Industry Volume (TIV) recorded during said period rose by over 30% compared to the same period last year.

In their virtual press conference held earlier today, MAA President Datuk Aishah Ahmad stated that a TIV of 331,386 vehicles were recorded throughout the first half of 2022. The TIV from the same period last stood at 249,178 vehicles, thus marking a healthy 33% percent growth.

The association credits this increase being fuelled by pent-up demands for new vehicles amongst consumers during this period. Except for March, the association says that Year-on-Year (Y-o-Y) vehicle sales were consistently higher throughout the first half of 2022 compared to the same period in 2021.

At 73,244 units, the TIV for March 2022 stands as an all-time high monthly TIV ever recorded by the MAA. The rush for deliveries by MAA members with financial years ending on 31 March 2022, plus the longer working month, could have contributed towards this, said Datuk Aishah further regarding this.

The second highest monthly TIV was registered last month. MAA revealed that the TIV in June this year stood at 63,366 units. The association adds that the figure would’ve been higher had the global chip shortage did not affect several key manufacturers.

In terms of local production volume, MAA recorded a total of 317,933 units in the first half of 2022. Compared to the same period last year, the figure stood at just 241,288 units, thus marking a 31.8% rise increase.

MAA says this growth in production stems from both the pandemic lockdown enforced last year, as well as the recent surge in demand for new vehicles. The latter, according to the MAA, is also a reflection of the government’s decision in not extending sales tax (SST) exemption for passenger vehicles after 30 June 2022.

“For the automotive industry, despite not having the PEMERKASA Plus plan for car buyers to enjoy sales tax exemption extended beyond 30 June 2022, MAA members are happy and pleased that the authorities have allowed buyers with confirmed booking to register their vehicles by 31 March 2023. This measure is indeed a positive one as it will help the automotive industry to fulfil backlogged orders while at the same time allowing the rakyat to enjoy lower price cars,” Datuk Aishah Ahmad, MAA President said.

Looking ahead into the second half of 2022, MAA have also revised their initial TIV forecasts of 600,000 units to 630,000 units – an increase of 30,000 units. Passenger cars are expected to lead this growth again, with the association expecting a TIV total of 567,000 units – 25.3% more than the actual TIV of 452,663 units recorded in 2021.