Proton to absorb SST for all models in September

PETALING JAYA: Proton Holdings Bhd will absorb the sales and services tax (SST) for all car models in September to give buyers additional time to make their purchases.

The company previously stated that its car prices would change once the SST is enforced. However, it said the looming implementation of the tax had caused disruption in the automotive market as consumers rushed to take advantage of the three-month tax holiday.

“While Proton acknowledges that the SST will affect car prices, for September the company will absorb the SST for all models to give buyers additional time.

“This will benefit them during this transitional period and help Proton maintain the sales momentum it recently built,” Proton Edar CEO Abdul Rashid Musa said in a statement yesterday.

Proton continued to record strong sales numbers in August, setting a new high point for monthly sales this year for the third consecutive month.

According to the statement, sales grew by 18.5% in July, making August the strongest sales month for Proton over the last 36 months.

A total of 9,501 cars were sold, marking not only a new record for the year, but also the highest sales volume since July 2015.

The Proton Saga and Persona models led sales for the company, with 4,174 registrations recorded for the Saga and 2,957 recorded for the Persona.

Rashid said the strong numbers were primarily fuelled by the zero-rated goods and services tax (GST) climate prior to the implementation of the SST as well as Proton’s aggressive marketing campaigns.

“Our turnaround plan is on track, so the onus is on us to make sure these new customers stay by delivering a high level of customer service,” he said.