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Malaysia’s automobile industry is expected to recover in 2021 despite the movement control order (MCO). The recovery would be aided the extension of sales tax exemption on passenger cars by another six months under the economic stimulus package by the Malaysian Government, according to the Malaysian Automotive Association (MAA).


Malaysia’s cumulative vehicle sales in 2020 stood at 529,234 units, down by 12.4pc from 604,281 units sold in 2019. Sales, however, surpassed MAA’s forecast of 470,000 units. In December 2020, the country’s auto sales stood at 68,836 units.


The country’s auto sales fell in 2020 due to the impact of the COVID-19 pandemic on the auto industry across the globe, especially in the initial months of the lockdown (April-June, 2020).


Malaysia’s passenger car sales in 2020 fell by 13.8pc to 474,104 units from 550,177 units in 2019, while sales of commercial vehicles (CVs) stood at 48,469 units, down by 10.4pc as compared to 54,104 units in the previous year. 


The association said that although the overall auto sales declined in 2020, they were better than expected due to the Penjana sales tax exemption which boosted demand and drove sales in the second half of 2020.



MAA expects the country’s total auto sales to increase by 8pc or 40,566 units in 2021 to 570,000 units from 2020.

The country’s sales tax exemption for passenger cars under the Penjana economic stimulus package was announced between June 15 -Dec 31, 2020. 

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