PETALING JAYA: The primary quarter of 2022 is predicted to provide slower auto gross sales earlier than the tempo sees an uptick within the second quarter, simply earlier than the gross sales and repair tax (SST) exemption ends.
Kenanga Analysis mentioned it expects most automotive gamers to chart slower gross sales within the first quarter following the sturdy quarter earlier than it as nicely on account of the floods in December 2021, which disrupted sure suppliers’ operations.
“The second quarter is predicted to ship higher numbers as automakers rush to ship back-logged bookings earlier than the ending of the SST exemption (by June 2022) to keep away from cancellation by shoppers,” it instructed purchasers in a report, including that the SST exemption extension to end-2022 was at a proposal stage.
With the reopening of financial actions and ongoing gross sales tax exemption, it expects a buoyant restoration in automotive gross sales as evident from the rising variety of back-logged bookings for standard fashions and the stream of recent fashions launches in 2022.
“Moreover, battery electrical autos’ new launches are anticipated to be boosted by the total exemption of import and excise duties, gross sales tax, street tax, and particular person tax reduction of as much as RM2,500 for the prices of buy, set up, rental and subscription charges of electrical car charging amenities,” it mentioned.
Nonetheless, for sure fashions, the restoration of automotive manufacturing may very well be restricted by the on-going world constraints in semiconductor chip provide, it famous.
“Auto makers have prioritised utilization of such sources, diverting any valuable semiconductors they should their most worthwhile autos akin to full-size vehicles and sports activities utility autos or SUVs, in addition to luxurious autos.
“The Malaysian Automotive Affiliation is at the moment vying for an extra SST exemption extension to the tip of 2022 as the present chip scarcity is limiting auto makers’ potential to maximise their manufacturing capability to fulfill backlogged demand which stretches as much as six months for sure fashions,” it added.
The analysis home has maintained its “impartial” name on the native automotive sector with a 2022 whole business quantity goal of 600,000 items. It mentioned however the nonetheless excessive inflation outlook, enhancing monetary and employment expectations are “beefing up” shoppers’ procuring plans for the approaching months.“Numerous authorities help measures introduced will assist to keep up some client confidence for the remainder of the 12 months; significantly the exemption of gross sales tax for passenger autos (mid-June 2020 to June-2022) and the prolonged mortgage moratorium for financially distressed people.
“This prevented the final family monetary scenario from worsening and with the anticipation of higher earnings and job prospects, shoppers expect brighter days forward, however not with out rising jitters over rising important merchandise costs,” it mentioned.
“Total, passenger autos’ mortgage approval charges present optimization at 56.3% regardless of simply recovering from two months of lockdown, in comparison with the bottom of 31% in April 2020 in the course of the enhanced motion management order.
“Concurrently, the employment fee confirmed constructive progress with the unemployment fee at 4.2% in January 2022 in comparison with January 2021’s fee of 4.9%.”