Malaysian Sales Flat in January Ahead of Tax Cut

Malaysia’s new-vehicle sales rise 1% year-on-year to 50,602 units in January.

Not surprisingly, last month’s result was down 22% from December, when the market was flooded with end-of-year promotions.

“The announcement that car prices would be lower once the goods and services tax is implemented had caused consumers to hold back purchases,” the Malaysian Automotive Assn. says.

The government is introducing a 6% GST on April 1 that will replace a 10% sales-and-service tax on new vehicles.

Car sales edged down 2% in January to 44,697 units, while commercial-vehicle deliveries rose 6% to 5,905.

Among the New Year celebrants was Ford, which saw its January sales jump 33% year-on-year to a record 1,544 units. The Ranger pickup continued as Ford’s best-selling nameplate in Malaysia, with deliveries spiking 87% year-on-year to a record 1,169 units.

“We hit the ground running in January,” David Westerman, managing director-Ford Malaysia and Asia Pacific Emerging Markets, says in a statement.

“With more segment-leading global Ford vehicles coming to Malaysia this year, a growing network of authorized Ford dealerships and commitment to continue building on our overall customer experience, we are confident of further strengthening the Ford brand here in 2015.”

The MAA data shows Malaysian vehicle production rose 2.1% to 56,654 units in January with passenger output up 3% to 52,387 and CV builds down 7.8% at 4,267.