KUALA LUMPUR, July 21 (Xinhua) -- The Malaysian Automotive Association (MAA) on Thursday revised Malaysia's total vehicle sales forecast this year to 630,000 units from 600,000, after total vehicle sales or total industry volume (TIV) rebounded strongly in the first half of 2022.
The new forecast indicated a growth of 23.79 percent from 508,911 units last year, the MAA said in a statement.
According to the MAA, the growth was underpinned by economic recovery and expansionary measures in Malaysia, and the introduction of new models with the latest designs and features as well as electric vehicles at affordable and competitive prices may assist in sustaining buying interest.
Continuation of efforts to fulfill backlogged orders and promotional campaigns by car companies to boost sales and maintain market share is also seen as a driver.
However, it said that events arising from geopolitical tensions, escalating oil prices, inflationary concerns, increase in food prices, increase in logistics and shipping costs and supply chain disruptions may dampen Malaysia's economic growth outlook and in turn consumer demand for new vehicles.
For the first half of the year, Malaysia's TIV rose 33 percent to 331,386 units from 249,178 units a year ago.
Following the Malaysian government's decision not to extend sales tax exemption incentives for passenger vehicles after June 30, the MAA said there had been a strong uptick in demand for new vehicles.
As a result, TIV registered in June exceeded the 60,000 units mark at 63,366 units, the second highest monthly TIV achieved during the first half of the year.
Total production volume in the first half of the year increased 31.8 percent to reach 317,933 units compared to 241,288 units in the same period last year. ■