Tax Changes Spark March Car-Sales Jump in Malaysia

Malaysian new-vehicle sales jumped in March as dealers cleared stocks before the April 1 introduction of a new goods and services tax.

The Malaysian Automotive Assn. says the 67,314 units delivered in March were up 33.6% from February’s 46,958 and 14.2% ahead of prior-year’s 58,924.

The first quarter ended with sales up 5.2% year-on-year at 168,306 units.

The government’s Bernama news agency says the March result was the second-highest monthly total since the 68,451 units tallied in July 2013.

Vehicle prices are expected to fall as the new 6% GST replaces a 10% sales and services tax, but dealers spent March offering even better deals to clear stock bought under the now-expired higher tax. The pre-GST rush is expected to result in April sales coming in lower than March.

Last month’s sales of passenger vehicles rose 13.8% year-on-year to 59,318 units, while commercial vehicles climbed 17.6% to 7,996.

MAA data shows vehicle production rose 19.3% in March to 60,085 units with passenger-vehicle output rising 17.9% to 55,183 and the CV build improving 37.1% to 4,902.

Ford posted its best-ever monthly performance in Malaysia in March, with deliveries jumping 46% from February to 1,818 units, driven by demand for the Ranger, EcoSport and Fiesta.

The blue oval also achieved a record opening quarter in Malaysia with sales up 24% at 4,611 units.

David Westerman, managing director-Malaysia and Asia Pacific Emerging Markets, says the March momentum was driven in part by the GST implementation. “We are anticipating some market correction in the coming months due to the pull-forward in demand that the GST’s impending implementation created,” he says in a statement.

The Ranger pickup again was Ford’s most popular nameplate in Malaysia, with March sales increasing 42% from February to 1,369 units for a first-quarter total up 36% at 3,504.

Mitsubishi Malaysia reports a record result for its financial year ending March 1 with sales up 12.8% to 14,184 units.

It says the strong performance was helped by surging sales of its first locally assembled model, the Mitsubishi ASX. Since its introduction in February 2014, the 3,299 units delivered have contributed 23% of the Japanese automaker’s total sales.

In the 10 years Mitsubishi has been operating in Malaysia, it has sold more than 88,000 units. Its ASX 2-wheel-drive and 4-wheel-drive compact SUV is locally assembled while other Mitsubishi models are imported as completely built-up units from Thailand.