The upcoming gross sales and repair tax (SST) enlargement, which is scheduled to take impact on July 1, is anticipated to have a restricted influence on the automotive sector instantly, in accordance with CIMB Securities. In a analysis word, it stated 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 the moment set at 8% in addition to on consumables akin to tyres, which is set at 5%,
The agency stated that whereas there could possibly be a slight enhance in dealership and showroom rental prices because of the measure, it believed the monetary influence can be minimal. Not directly, nevertheless, it stated that weaker client sentiment may weigh on new automobile gross sales within the second half of 2025, as Bernama experiences.
Whereas the Malaysian Automotive Affiliation (MAA) has projected a 4.5% year-on-year (y-o-y) decline in whole trade quantity (TIV) to 780,000 models in 2025, CIMB Securities has forecast a sharper 7.0% drop to 760,000 models, citing potential headwinds from the deliberate elimination of the RON 95 petrol subsidy, which is anticipated within the second half of the 12 months.
Regardless of this, the agency stated that demand within the sub-RM100,000 section is anticipated 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} optimistic level from the elimination of gasoline subsidies could possibly be a rise in electrical automobile (EV) adoption, aided by the expectation that the full obligation exemptions for imported EVs are unlikely to be prolonged by the federal government past the December 31, 2025 deadline. The agency stated it expects a possible spike in EV demand in This fall as consumers rush to profit from tax financial savings.
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