small_logo_nissan.jpgEdaran Tan Chong Motor announced price cuts of between 3% to 15% for Nissan cars with immediate effect under the new National Automotive Policy tax rates. The Nissan Sentra will be cheaper by 5%, while the premium Nissan Cefiro will be cheaper by 12-15%. Suprisingly the Nissan X-trail SUV also enjoyed a small price reduction of about 5%, when the whole industry was facing either static or rising prices in that model range. Nissan’s Serena MPV and the Nissan Vanette window van’s prices are to be about 9%-10% higher though, but not immediately. It’s effective date will be announced later.

Edaran Tan Chong Motor executive director Dr Ang Bon Beng expressed some concerns on the National Automotive Policy, especially on the usage of local parts in CKD assembled products and the Industrial Adjustment Fund which was set up. In Tan Chong’s case there is nothing much to claim from the fund except for the use of local parts. However this is a little tricky as Nissan has to consent, and even if they do, sometimes local manufacturers do not have the economies of scale to offer competitive prices for the parts. This might end up with local manufacturing of parts ending up costing more than importing them from overseas suppliers.