Malaysia Auto Sales To M40 Could Drag By E-Invoicing, Fuel Subsidy Rationalisation - Kenanga

According to Kenanga research, the implementation of electronic invoicing and the possible rationalization of fuel subsidies may hinder car sales in the mid-market segment. The research house however, is optimistic that the affordable market will grow.
The adoption of e-invoicing, which will effectively end the practice of offering 100% hire purchase financing, is expected to have a significant effect on the buying of new cars, particularly in the mid-market segment.
In addition, Kenanga said that the B40 groups will not be affected by the upcoming rationalization of fuel subsidies and might even gain from the implementation of the progressive wage model.
In contrast, the M40 group may decide to postpone buying a new car, trade it in, or convert to an electric car in order to save money on fuel, it added.

“The pay rise for most civil servants (top management will receive a 7% rise, while those in professional and executive roles see a rise of 15%) in December 2024 will also partially restore their spending power eroded by high inflation,” The research house said.
August's total industry volume dropped 2.3% year over year and 1% month over month to 71,162 units, MAA reported. Kenanga attributed this decline to consumers adjusting to e-invoicing and the increase in public servant pay.
Sales of 503,783 units so far this year account for 65.85% of the 765,000 units that the Malaysian Automotive Association had projected for the entire year. According to Kenanga Research, the sales figure is in line with their more cautious full-year projection of 740,000 units.
"September sales “will be comparable” to August, “on various promotions as well as new launches such as the all-new Proton X70 (with early bird rebates of about RM7,000)”, it added.