The federal government has deferred to January 2026 the implementation of the Excise (Determination of Value of Locally Manufactured Goods for the Purpose of Levying Excise Duty) Regulations 2019, or for brevity’s sake, OMV/402.
Full explanation here, however this mainly implies that come January 2026, Malaysians may just pay between 10% and 30% more for a locally-assembled (CKD) car. So any individual in need of a CKD automobile will have to take a look at getting it this pace, and this ahead purchasing hobby is what’s supporting Kenanga Funding Storage’s determination to stick with its 805,000-unit total industry volume (TIV) forecast for this year, Bernama stories.
Significantly, Kenanga IB sticks out for being the one organisation up to now to foresee greater than 800,000 unutilized vehicles to be bought in Malaysia this pace – RHB Funding Storage predicts 730,000, Maybank Funding Storage Analysis 750,000, CIMB Securities 755,000 and the Malaysian Car Affiliation 780,000. A document 816,747 new cars were sold in Malaysia last year, breaking 800k for the primary pace and beating 2023’s 799,821-unit record by way of 2.1%.
Kenanga IB stated in a observe lately that Perodua, which holds 44% marketplace proportion and has an all-CKD line-up with a high localisation rate, is prone to get advantages probably the most, however the top rate branch could also be collision as upper-tier M40 and T15 teams might stock again from purchasing unutilized vehicles, downsize to smaller vehicles or transfer to hybrid and electrical automobiles as targeted RON 95 petrol subsidies loom forward.
“In general, the industry’s earnings visibility is still good, backed by a booking backlog of 150,000 units as of end-December 2024. More than half of the backlog is made up of new models, alluding to the appeal of new models to car buyers. This trend is likely to persist throughout 2025 given a strong line-up of new launches,” it stated, including that battery-electric automobiles may just additionally prop up the numbers because it’s the closing pace for fully-imported (CBU) EVs to be tax-free.
“We expect more favourable incentives from the government, which has set a national target for EVs and hybrid vehicles of 20% of TIV by 2030 and 38% by 2040. Meanwhile, the government will speed up the approval for charging stations. The number of proposed charging stations is currently at 4,235 (3,354 built to date), and this should more than double to 10,000 by end-2025,” it stated.
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