The upcoming gross sales and repair tax (SST) growth, which is scheduled to take impact on July 1, is predicted to have a restricted influence on the automotive sector immediately, in accordance with CIMB Securities. In a analysis notice, it mentioned this was as a result of there can be no modifications to the automobile gross sales tax, which is presently set at 10%or to the service tax imposed for upkeep and restore providers, at present set at 8% in addition to on consumables resembling tyres, which is set at 5%,
The agency mentioned that whereas there may very well be a slight enhance in dealership and showroom rental prices because of the measure, it believed the monetary influence can be minimal. Not directly, nonetheless, it mentioned that weaker shopper sentiment might weigh on new automobile gross sales within the second half of 2025, as Named experiences.
Whereas the Malaysian Automotive Affiliation (MAA) has projected a 4.5% year-on-year (y-o-y) decline in complete business quantity (TIV) to 780,000 models in 2025CIMB Securities has forecast a sharper 7.0% drop to 760,000 models, citing potential headwinds from the deliberate removing of the RON 95 petrol subsidy, which is predicted within the second half of the yr.
Regardless of this, the agency mentioned that demand within the sub-RM100,000 section is predicted to stay resilient, supported by nationwide manufacturers and chosen entry-level Japanese automobile fashions. It projected that nationwide manufacturers would retain a dominant 64.5% market share in 2025.
The corporate added {that a} constructive level from the removing of gas subsidies may very well be a rise in electrical automobile (EV) adoption, aided by the expectation that the full responsibility exemptions for imported EVs are unlikely to be prolonged by the federal government past the December 31, 2025 deadline. The agency mentioned it expects a possible spike in EV demand in This autumn as patrons rush to profit from tax financial savings.
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