Malaysia: Strong car sales forecast for 2015

The Malaysian Automotive Institute expects a higher total industry volume (TIV) of 700,000 units for this year, driven by consumers demand for cars.

Chief executive officer Mohamad Madani Sahari said the TIV forecast was in tandem with the implementation of the Goods and Services Tax (GST) on April 1.

“The GST should stimulate demand for vehicles by reducing prices with the abolishment of the Sales and Services Tax. Car sales in January and February performed well…we don’t see the reason why demand for cars would drop following the GST.”

Last year Malaysia’s car industry recorded a total TIV of 656,000 units.