The first two months of the ‘tax holiday’ – where GST has not been charged and the new Sales & Services Tax (SST) is not added yet – have passed and there’s one more month left. For many car-buyers, there’s been concern that due to the long waiting period for delivery, they might not get their new vehicles before August 31, 2018 and if it passes that date, then they will have to pay extra due to SST being charged.
The unusually high demand was unexpected by the car companies when they planned their stocking earlier in the year. There was a promise by Pakatan Harapan that GST would be removed if they won but back then (before the elections), a total change of government was not expected either.
So the planning for stocks was not boosted and with the market being weak, there would have been reluctance to commit to extra stocks and then have difficulty selling them off. They would then have more stocks than planned and have to discount at year’s end.
So even though it has been a ‘boom time’ in June and July, what most companies have enjoyed is that they have been able to sell more than expected but that has also meant exhausting buffer stocks. Especially for the more expensive imported models where the savings are greater, the waiting periods are long since it is even harder to increase stocks within a couple of months. In most cases, it would take at least 4 months to vary the order – by which time the ‘tax holiday’ would be over.
This is of concern to customers who have booked their new vehicles and some companies are telling customers who make their bookings before August 31 but get their vehicle delivered later that they won’t have to pay the extra amount for SST. One of the companies is Hyundai-Sime Darby Motors (HSDM) which will honour the selling price of the Hyundai IONIQ Hybrid and Tucson (Turbo and Elegance variants) with zero-rated GST while stocks last for a limited time only.
According to Dennis Ho, MD of Sime Darby Motors (Malaysia, Thailand and Taiwan), the sales of Hyundai vehicles have increased during the tax holiday period, especially for the IONIQ Hybrid and Tucson as customers take the opportunity to enjoy greater savings. “With our stock for the IONIQ Hybrid and Tucson fast depleting, we will need time to replenish the stock in order to fulfill customers’ demands. It is only fair that HSDM absorbs the SST for orders placed by August 31, 2018, even for vehicles delivered after the SST takes effect,” he explained.
The current selling price (excluding insurance) for the IONIQ and two Tucson variants with zero-rated GST are as follow:
IONIQ Hybrid HEV – RM94,788 | IONIQ Hybrid HEV Plus – RM109,988
Tucson Elegance – RM119,188 | Tucson Turbo – RM137,488
HSDM offers a 5-year or maximum of 300,000 kms warranty on all its new passenger vehicles. In addition, the IONIQ comes with free scheduled service for the first 3 years or 60,000 kms while the Tucson has free scheduled service for the first 3 years or 50,000 kms. A 24-hour road assist service is also available for new and existing Hyundai vehicles.