Vehicle sales skid in September as reality bites after GST tax holiday

The Statistics Department said on Wednesday the abolishment of GST led to the increase in some of the index of the main groups in June.

KUALA LUMPUR: Vehicle sales fell in September after the Goods and Services Tax (GST) tax holiday ended on Aug 31 while stocks of some vehicle distributors were depleted, according to the Malaysian Automotive Association (MAA).

It said on Monday sales volume in September fell 23% or 9,715 units from a year ago to 31,241 units. They comprise of 27,022 passenger vehicles and 4,219 commercial vehicles.

“Sales volume in September 2018 were depleted following the overwhelming demand during the GST tax holiday period,” it added.

The MMA said the total industry vehicles (TIV) from January to September were up 7% at 454,971 units from the 426,678 units in the previous corresponding period.

It said 37,000 vehicles rolled off the assembly lines, of which 33,436 were passenger vehicles in September. A year ago, the number was 38,213 units.

Year-to-date, the number of vehicles manufacturerd was 420,498 units compared with 381,171 units in the previous corresponding period.

On the outlook for October, the MAA said sales volune was expected to be maintained at the September level.

“Much of the demands was fulfilled during the GST tax holiday period and also adjustment to post-tax holiday environment,” it said.