The Malaysian government moved the goods and services tax (GST) to zero and it is credited for new vehicle sales of 68,465 units in July, up 41 percent year-on-year from 48,553 units a year ago. According to the Malaysian Automotive Association (MAA) sales were up 6 percent or 3,963 higher than June. Passenger vehicle sales rose 40.6 percent year-on-year to 61,211 units in July, while commercial vehicle sales grew 44.2 percent year-on-year to 7,254 units.
For the first seven months of the year, total vehicle sales climbed 7.6 percent to 358,179 units from 333,006 units a year ago. The GST is set to return in September 1 after a three-month zero period.
In regards vehicle production, July also rose 25.5 percent to 55,164 units from 43,952 units a year ago. Passenger vehicle production rose 26.4 percent year-on-year to 51,165 units in July, while commercial vehicle production increased 15.6 percent year-on-year to 3,999 units. Between January and July 2018, total vehicle production gained 12.3 percent to 336,111 units from 299,270 units.