Bank Negara Malaysia’s new guideline on responsible financing, which tightened the criteria for auto financing, has impacted the automotive industry, especially budget car players. Proton Edar Dealers Association Malaysia (PEDA) has been among the most vocal opponents, claiming that only 30% of loan applications were approved in January.
Industry players met BNM last week and Perodua MD Datuk Aminar Rashid Salleh said the meeting was beneficial as it addressed serious issues.
“We are committed to support the government’s initiatives, in particular to address the rising household debt, but we would also appreciate it if the government and its regulatory bodies would consult the players to better understand the impact to the industry prior to the implementation of any new initiatives or measures,” he said.
Aminar added that partly due to the implementation of BNM’s financing guideline, the inventory of vehicles has risen and if left unchecked may need a downward revision to production planning. He added that the automotive ecosystem has also been hit as approval time for loans has lengthened, affecting sales of dealers.
He urged that the new guidelines be implemented in stages to allow a soft landing for both the players and consumers. Aminar said financing institutions should also take into consideration of the government’s desire to see growth in the industry by increasing competitiveness as well as a better business environment for all, in line with its comments on the soon-to-be announced revised National Automotive Policy.
Click here and here for PEDA’s views on the matter. To air your views, hit the comments section.
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malaysia. pfft
I wonder why the moderator approve such comment? I don’t see the reason for having this comment approved.
donadoni has said nothing but 2 words to express his/her purely opinion and supported with no explanation whatsoever. I’m perplexed as I thought this is the reasons for my previously unapproved comments – that it has to carry some intellectual points.
Perhaps a comment that should be approved would be like:
“malaysia. pfft” and continues with some justification of why he/she thinks so.
or… maybe it’s just me.
indon maybe….
“Bank Negara Malaysia’s new guideline on responsible financing, which tightened the criteria for auto financing, has impacted the automotive industry, especially budget car players.”…..’budget car’? since when we have a budget car player?…don’t tell me viva is a budget car…WTF to that…capitalist at their worst…they just care about themselves not about the debt…
I’ll bet all my money saying that if it’s the other way around, BNM making it easier to get financing for cars, ignoring the increasing debt of us poor buggers, the “players” will just laugh quietly :(
Reduce car price. Nuff said.
yup reduce car price, wondering which part of the bnm policy they dont understand..the rakyat been in debt in supporting them all these years..cant hutang anymore..maxed out d..
Reduce the excise tax first (at 75% on all cars, the government really rips every single car buyer!)
Kereta ialah kehendak. bukan keperluan.
BNM in effort to control individual Malaysian debt rate.
just my 10cent
In Malaysia is keperluan.
Yup..since public transport is very poor, kereta is still a need in malaysia..they said have budgeted billions every year to improvise public transport, but where is the result? SPRM,do your job..
Pssible 20 years payment plan for auto loan? Thats gonna b pathetic man..haha
they could incorporate a ruling the minute u r born, tie u down for a 50 year car loan, very cheap finance… 22.3% pa, free diapers for 2 years, free pacifier for 6 months, free booster 3′ and free ballons to entertain u till 4 yr old, but u hv to thumbprint ur right n left thumb, also thumbprint all ten toes to prevet fraud. aha… once u reach 18 and hv a driving licence, u get to own ur car automatic…. never mind if u can pay straight away, u hv the 50 yr loan signed n sealed mah… they can hunt u down. oh yes, forgot to mention, they hv embedded a microchip inside ur skin, can track where u r… cannot hide lor.
Well, dont think P2 should comment, given their pricing strategy.
“Sir, your car is damn overpriced!”
export more of your products la…. so many local companies are already venturing out of Msia due to saturated domestic market.
the sirion cant be THAT bad in indonesia… unless you think its a JDM and thus price it like a Yariz/Jazz…
What if the 75% excise reduced to 25%. And the RM20K profit per car reduced by half, maybe a larger portion of the market can afford to buy? Cadang je…
then how much $$$ should go to Jap? how much will left to P2?
who cares..everyone got good car @ satisfied price..huhu
ya ya ya, ringgit go to Jap you don’t care? later your business bankrupt, losing job, not even the most cheapest car you can afford to buy.
If you do not have money, but need a car to get around (because the public transport is atrocious), please consider a cheap, 2nd hand car like a used Viva or Kancil. Save money, work hard, wait for promotion or pay rise. Life isn’t that complicated.
To all the clowns that constantly write things like the above poster, please use your brain. Are you saying that everyone should earn a 5 figure salary to be able to afford a safe and comfortable vehicle? Are you also saying that only developed countries deserve affordable vehicles? With this kind of stupid mentality we are just telling the crooks in govt that it is ok to squeeze us of our hard earned money, because we will just work more to earn more so that they can squeeze even more.
Before the stupidity that is ‘otomobil nasional’ and excessive taxes, every middle income Malaysian could afford a safe and comfortable car. At that time, you could easily afford a Toyota Corolla LE on a RM2000 nett salary and pay it off within 3 years. Now, instead of more Malaysians getting better access to such vehicles, we are instead burdened with more and more debt to even have a basic car. In the eighties, this would be unimaginable, but look at us now. It is so bad that even BNM needs to step in and control the situation.
So please, enough with the stupid work harder comments. Even if you earn a lot, you should not be splurging it on taxes.
2000 rm nett in 1985 is a lot of money. At that time fresh grad engineer salary probably around 900 rm. Now petronas fresh grad salary is rm 4500. That’s 5 times. So for 2000 rm in 1985 is like 10,000 rm NETT in 2012. Maknanya gross salary 13,500 rm. memanglah boleh bayar 3 tahun je. power gila komen kau
Hello, nobody was talking about fresh grad. FYI, there are also fresh grad these days earning RM1100 or lesser.
Also back then how many people actually are graduates? Nak banding pun tak pandai. Konon komen orang lain salah.
Dulu, orang kerje sebagai petani atau guru pun dah boleh beli kereta toyota corolla . Tak percaya tanyalah pakcik kat kampung.
PETRONAS fresh grad RM4,500? Ada kosong?
Siapa la yang komen fresh grad petronas salary rm4500. Bengong betul. Kau ni tahu ke nak masuk petronas tu bukan calang2 org. Kena ada cable kuat. Kalau tak result kena power. Lagi senang belajar kat Universiti Petronas. Boleh la masuk.
Budak2 skrg ni grad mmg susah. Gaji standard mmg dr rm1100. Paling lekeh rm1500. Mmg masyarakat malaysia ni duduk dlm hutang je memanjang. Grad je ada hutang PTPTN la, JPA la, etc. Lps tu nk beli kete, jd la hutang kereta. Lps tu nk beli umah, hutang umah pulak. Tu la along skrg mmg business booming. Sbb semua org mau byr hutang tp duit takde. Kete, barang2 umah, semua bende mahal. Kat KL ni pegi sana sini semua kena bayar. Parking kena bayar. Kalau parking tak betul kena saman. Mmg kerajaan dan capitalism ni jahat betul la.
keep living your dream… even without proton, there’s no guarantee the tax is going to be lower. Import tax on cars was raised in 1960s, that’s longggggg before Proton exist.
Malaysia began to encourage the establishment of the automotive industry in 1963. The policy of encouraging assembly for automobiles and the manufacture of component parts was announced in May 1964. Assembly plants were set up in the later 1960s in order to provide employment and to substitute imports of cars.
To further develop the local automotive industry and to encourage vehicles to be assembled locally, Govt has adopted a few policies. The policies include requiring a certain percentage of a vehicle to have parts and component that are manufacture locally, imposing import taxes and putting a tariff system on CBU imports.
Apart from the protective tariffs that was announced in February 1966, all distributors and dealers were required to obtain import licenses that had to be renewed every six months.
At least the public transport could potentially be better. :)
Dude in 1980 , felda settler can afford to buy corolla lah
do you understand what i’m trying to tell in previous comment?
too many imports, money keep flowing out of the country, that’s why Govt increased import duties and encouraging local industries.
Oh please la, the politicians themselves are siphoning billions overseas, no need to blame it on the auto industry. Please quote your reference on protective tariffs in 60s, I am sure a lot of readers here would like to read your facts.
Mofaz
1) Do you think these policies benefit overall?
2) Do you think the implementation of the policies has been twisted to benefit certain party more than all Malaysian? which it supposed to.
What a way to contradict yourself.
Its the said policies that moved the price points of ALL CARs to impossibly insane levels. And why? To protect home grown industries.
Were you even old enough to have live through that period?
These are the cars we had, all bought brand new.
1980 Mitsubishi Lancer 15K
1984 Toyoya Corolla LE 17K
1986 Honda Civic 21K
1996 Wira 1.5 Auto 54K (Civic EK at that time is already 80K+)
2005 Honda Accord 2.0 147K (Civic’s and Corollas then were over 100k)
So what change between 1986 and 1996? Well Proton came in at 1985.
If I remembered correctly, the first Sagas back in 85 were only about 17-18K…
Few years later after the 1986 Civic, I was looking at a B13 Sunny “Super saloon” and thinking what amazing deal it was at 63K. Rubbish. In the 5 years since ’86 civic, the equivalent car went up 300%.
How did a saga balloon to 37K, then drop back down to 27K in the last years before the new saga was launched. You think Proton lost any money discounting a saga 10K much to the chagrin of people that just paid 37K for one? they made plenty.
To all the clowns that constantly write things like the above poster, please use your brain. I dont have 5 figure salary and i can afford a car, no problem. With this kind of stupid mentality by calling other people stupid is more stupid.
Yes i do agree that the government need to do more to help the rakyat. But i dont blame proton or perodua. I am sure even without them the tax will still going to be high. At the end of the day its an income to the G. It is up to them where they should tax more. Its the rakyat who select the government.
“Before the stupidity that is ‘otomobil nasional’ and excessive taxes, every middle income Malaysian could afford a safe and comfortable car. At that time, you could easily afford a Toyota Corolla LE on a RM2000 nett salary and pay it off within 3 years” Yea..can you buy nasi lemak for 10sen now??
nasi lemak no more 10sen. now nasi lemak is RM2 because of Proton maa!
The cheapest Nasi Lemak I can remember was 50 sen, never experienceed the 5,10 sen bit unless you’re in my mum’s age of 65 and above.
Yes, but what kind of car are you getting for your money? Obviously you are even more stupid if you don’t understand the value of what you are getting for what you pay.
The cost of living in Malaysia is escalating because of factors manipulated by our govt. FYI, nasi lemak did not cost 10sen in the 80s. If you are trying to make an argument please put more effort.
in 1981 my father bought a Toyota Corona 1.8 5 speed for 18K. loan 5 years max, downpayment minimum 50%.
in 1984 Nissan Sunny 130Y and Corolla LE were priced around 17-18K.
in 1985 when Proton Saga was introduced at 17K for 1.3, 21K for 1.5… the japanese makes were forced to sell higher. at that time, protectionism was not obvious.
Sadly, many of the younger generation are not aware of the affordability of having a car back then. You have good choices and the value of the car was not inflated by over taxation. Back then there was no such thing as 25% yearly depreciation.
People really need to wise up and stop encouraging everyone to throw they hard earned money away.
Times have changed, we use to produce item, sell it and pay with our hard earned money, now we buy and sell using debt instruments, we pay using a debt instrument, banks repackage and sells that to unsuspecting investors who knows nothing about the whole thing except that its hoped that we make money. Don’t belive me, how many credit cards you own, how many mortgages, overdraft facility do you own?
Times are tough, if there are crooks to be shot, it should be the banks for giving credit too easily, the financial instrument expert who do deals with not a single asset backing and finally the politicians who de-regulate the banks, and making mega project on borrowed money.
The US may be fair to the people as far as tax on vehicles, but they have managed to screw up education, medical and pandering to the military and the big business. Lets admit one thing, big business, controls the goverment, not the other way round. That’s the real unseen hand. Changing the goverment won’t get you far as what you would have hoped. Some MNC’s spend on R&D per annum is bigger than the total export earning of entire nations.
dear Cheah Tat cheong or who ever behind the nick
i guess you belong to kroni side huh? are you one of the main substandard supplier for proton/produa? I mean if you not against lower car excise and tax meaning you are one of the kroni. right?
New Viva is Only RM26000
A good 2nd Hand Savvy not even RM 20K
so WTF people who’s salary below RM2000 is complaining about cannot buy new car.
Better still BNM only cap max 5 years loan even better. this will make those who barely afford T&H can only afford Proton…..
How much do you think the interest rates are going to be for loans on such vehicles? 2nd hand car don’t need higher maintenance and care? Please think before you post.
Like I commented above, why are we regressing and telling the govt it is ok for them to continue to squeeze our hard earned money?
You may enjoy driving around in a new car that has no more features than a car from the 90s, doesn’t mean everyone is stupid like that.
to proton, perodua…
people have no money to buy your car
admit it
sincerely,
fresh grad student
p/s: only base line model is affordable to me, others r in my dreams if current salary given by so called mnc or private if this much…
fresh graduate use motorcycle first… then buy car…
yeah, so he can break an arm or lost a leg next time he hit a pot hole (bike lanes at h’ways are worst then rally tracks), or maybe he can turned into minced meat when he get ran over by a lorry
P1 and P2 have short view and keep blaming BNM. P1 and P2 should review themselves instead of complaining. P1 and P2 still have narrow thinking…
BNM take right step to control the debt of rakyat.
I’m agree to statement of Tan Sri Dr Zati as below:
“On complaints of falling car sales as a result of the stricter approval guidelines, Zeti pointed out that with one of the highest car ownerships in the world, the local car market was already saturated.
“We have no objection if a borrower can afford to take a loan. It is important for carmakers to recognise that there are limitations in the domestic market; they have to intensify their competitiveness and explore other markets.”
oh zeti, you are what a statement. fully agreed.
Second that. They should look for export market. The population in Malaysia is not as dense (or many?) as developed country, thus the lower saturation point. Plus, as more technology comes in, a car can be used for a longer period of time and people don’t change the car as frequent as it was before. For P1 and P2, look for other market that may have higher demands, such as china, india, middle east, or come out with something totally new out-of-box product that can serve the transportation need of the people. Teleportation perhaps? LOL..
lepasni tak dapat le nak bagi bonus berbulan2 pada staf perodua,ntah2 takde bonus langsung hahaha
Umno is corrupted and stole much of the money to develop public transport. Rakyaat is forced to buy car to be able to move about effectively. Umno double screw us with high excise duty and tax. Better quality Proton is sold overseas at a price lower than Malaysia. There is no budget car in Malaysia – because umno adds in the corruptions and abuses. A VW Tiguan cost RM160,000 in australia but RM225,000 in Malaysia. Tell me where the balance goes – to umno crony pocket
PKR will do exactly the same thing. Anwar originated from UMNO for you to even blast UMNO for everything bad happening in this country. Some of that bad we’re seeing now started from Anwar’s time in UMNO. Don’t just see the present. Study the past to know what actually you are talking about. Umno this umno that but don’t know anything. And don’t even think that other opposition party won’t do what the government is doing right now. PKR DAP so clean is it? They’re as clean as if I say UMNO is clean. They’re all greedy politicians just on the opposite side. All blind by money when the opportunity is there. Those PKR DAPs will be what you’re talking bad about UMNO when they become the government. That is our state of politics. Everyone at the other side bad when in truth is they’re as bad as each other.
correct. some more want to subsidies this and that more than BN can give. where to get all those money??
fazron80 = BN cyber trooper
hahaha me support bn? You read my whole comments or not? Unlike some people by watching buletin utama i don’t think gov is all magnificent and opposition is bad as shown. By hearing PR ceramah i don’t think that PR is so great and gov is all bad. I have a brain to think for myself what is right and what is wrong. Both i don’t support because both smell like sh*t. You of course la support PKR. PKR jump into well you also jump together. To blind supporters all their leaders doing is right. I don’t support anyone. i don’t blind support. My support is more precious than gold. I don’t simply give just like that. Only no brain people support blind. I reject corruption on all level on all party. There is no double standard. Just because I bash pkr doesn’t mean i like what the government is doing. NFC, PKFZ there’s a whole list of wrong from the gov. But just because gov is wrong doesn’t make PR so clean. Just because you support the opposition doesn’t mean you can support them although they’re wrong. Don’t turn a blind eye to your own camp wrongdoing and whatever the other camp is doing all wrong. Just like NFC is very wrong, but for the other side by giving contracts to your own wife is very wrong too. If the table is turn that PR is the government, NFC will be the same story because it’s the same power misuse. Comments to criticize umno is wrong for everything isn’t right because whatever bad from them will be repeated by PR because they’re all the same greedy politicians. Don’t blame everything on other people. Umno la BN la PKR la PR la. Same story from both corrupt side. If you can afford to buy a car than you can buy a car. So easy to blame someone else but yourself.
everything in the malaysia is because of umno arr?
dont you think that you born alive in malaysia is because of umno?
not that i am supporting umno… but, relating everything to politics is just plain stupid…
dude, I’m not stating my standing on either side, but I believe it’s related to politics. Politics is the arena where the leader of the country is determined. And that leader then determines the policies of the nation..yes, that includes the taxes, automative policy, public transportation, etc.
nonetheless, the point is, if there is absolutely no leaking of the flow of the money, then definitely the nation will benefit from it. I’m not saying which side is good, but I’m pretty damn sure that a good leader is the one who serves the people with accountability and honesty.
chill~
a good leader is the one who can give more good thing than the bad thing as there is no leader that can only give just good thing or just bad thing. BN or PR is the same, just than which one can give more good thing than the bad thing………..
You are seriously out of touch man.
Uncle Lim,
You’re right on the Tiguan pricing, but the finance rate for car in Australia is as high as 8% per annum. The same with Brunei, finance rate can reach as high as 10% per annum but for Brunei if they opt for islamic financing they get MRTA for the car purchase to ease the burden of settling the car instalment.
Ni masalahnya kerja industri automotif…banyak drop tu….sakit gila Proton and Perodua nanti….bisa bangkrap this year…
side effect – production kilang jalan, tapi keta tak boleh jual..
so, keta baru prices all slashed with heavy discounts.. creating domino effect on used car values…
WAHAHAHAHA…PROTON BANKCRUPT SOON…GOOD GOOD!
Why so happy? Are you P2 wannabe? Oh, cap ayam jugak ko ni ye. Biasalah, gaji kecik…. Mana mampu beli dugong.
hahahahaha…
macam la mampu beli kereta bila proton bankrup…
loan boleh lepas ke?
Boikot..make a stand….dont buy any new cars….need to show who is the boss!!!!.
It is very clear BNM is not the problem…Malaysian cant afford cars as they use to.
Prices has reached a level that no longer it is affordable. It is matter of time
the bubble will burst.
This is what needs to be done :
Proton & Perodua rather than complaining ….they should lobby to reduce
taxes on cars…rite????.
BNM should go one step further to reduce the loan repayment period to 5-6 years.
At the end BNM will meet it objective on reduction on NPL and Proton and Perodua will meet their sales target….win win situation for both.
The only reason why the loan repayment went from 5 years to 9 years is cos
the price kept on rising. The easy way out was give out extended repayment.
Do you think this is the solution. We the rakyat suffer in long term when the car get old
and need to repair and yet still paying for a loan. Who is the losser.?
Think about it…..What is the real issue. BNM, P&P or………Tax structure……
FULLY AGREED…………as a citizen, we have to buy only things that we can afford and not overspent….as all the talks about our ‘booming’ economy – I do not see much benefits to the lower middle income group…….the rich will only be richer….TAX THE FILTHY RICH AND REDUCE CORRUPTION!! MAKE CLEAN OF THOSE CUSTOMS OFFICERS!!…the benefit and the increase in Gov revenue will more than the ‘75% excise duty” which the government finds sooo hard to retract..
boikot buying new car????
Pride and image are top priority. I don’t see many might care.
>10 yrs old will have high maintenance cost?
If the car is driven and maintained well maintenance wouldn’t be high.
Mechanical parts will subject to wear and tear and need to be changed. Parts like shock absorbers, break pump, etc change once will last for many years compare to >RM1K repayment for 5-9 years?
Again I have said before…no point we rant and rave here…spread the word and educate the general public…..go and post in many forum as you can… auto and non auto forum…
Dont complain here and do nothing about it….
Firstly, what Bank Negara wants to do is right. Too much credit in the market. When I did not have that much I drove a secondhand Unser. When I had more I drove an Alza. Now I drive a BMW. Still I do not overdo it. DO NOT blame Bank Negara.
However, cars are way over priced in Malaysia. P2 included. Then we have lousy roads. When I was young roads were smooth. My UK client asked me when travelling to KLIA why our roads are undulating. Malu laaaa …
Let’s base our comments in the right manner to the right person. Bank Negara is doing great job. Our authorities and car manufacturers are not! Put PR in power it will be the same.
This is a car blog, a great one. Let’s keep politics out of it …
Whether you like it or not, tax and policy are products of politics.
PR don’t have vested interest in P1 or P2 supply chain, will be more willing to change tax and policy to benefit the people.
if u singaporean u can said like tat……dekat malaysia kereta adalah keperluan….dumb!!
correct! it a need not desire, BUT if you choose to buy the car that is exceeding your monthly commitment, you are obviously treating the car as desire.
pity those people as there are actually many of them, they maybe around you, you know………
Whenever certain local car players start to make noise, expect bad news for consumers…
Itulah P2, you became so greedy that u forgot why your car can sell! It’s not because ur cars are good, but becos they are the cheapest in the market, RELATIVELY!!! And….senang dapat loan!!! Ah, this should give P2 a lesson. Heard P2 giving 6-month bonus, frankly speaking i think P2 DONT deserve it lah, no hard work n effort put, senang2 bonus kaw2!
The govt is transforming rakyat into high income nation in 2020. We all will be driving VW, Merc, BMW.. who cares about cheap cars like proton and perodua? how come in 2012, rakyat cannot even afford a viva or a saga? something is seriously wrong?
Let’s recap, we were promised AFTA back in 2002, didn’t happen. Abolish AP in 2010, didn’t happen too. What do we get? 9 years of car loan, toll roads contract extension for another 10 years, pay more in motor insurance, no more kedai potong spare parts. reality bites :(
damn true…
According to the newspaper, some people wouldn’t even have RM100 after paying the monthly installment. Survive on what?? Only eat Gardenia bread every day??? Man…………
The truth is Perodua is really overpriced. To backup my claim, ask P2 staffs how come they get annual bonus 6-8 months per year. This shows that P2 is efficient yes, but also their profit margin is high…but this issue will not only affect P2 and P1, it will affect every player, umw, tan chong, naza, honda, vw included. Those who can afford Golf in 2011 can only afford Polo in 2012…..those who can afford civic last year has to be book a city this year…you get my point.
Not only cars, the same thing is happening in property market….i foresee a lot of fire sale of houses by the speculators end of this year…maybe BNM see that fiddling with BLR is not as effective as tightening the loan approval…something is happening to our economy and BNM know they have to act fast…so save your cash fellow readers…
Bank Negara is correct to protect low-income buyers…it’s common sense…
But govt impose 75% car excise duty for ANY car below 1800cc regardless the car is full of safety spec, fuel-efficient engine, low CO2 emission level or not…that’s hardly common sense…
Otherwise, everyone from Protongkat, Perodua etc forced to give the safest, cleanest most fuel-efficient cars in the market
Then car price reflect its actual quality, worth, efficiency and surely reduced accordingly from maximum 75% price rate.
The issue here is not buyer credit profile but due to extra cost later on crap cars being overpriced (eg.Protongkat), limited choice (eg.PRotongkat), fuel-inefficient car extra fuel cost (eg.Protongkat), extra cost for repair rosak sana rosak sini time productivity wasted visiting workshop (eg.Protongkat), higher different loan interest rates (eg.Protongkat)…all of these extra cost crap that further affect car buyer dispossable income for car loans repayment in long run.
You see not only low-income folks not only pay overpriced junk cars but also must lots of other extra expenses. Unfair right?
If 75% car excise duty revised and based on Efficiency/Emission tests, all the above problem craps will slowly dissappear.
Cars below 18000c then fairly price reduced, people enjoy fuel savings (better engines), competition increase quality and also God Allah bless that Protongkat will close shop unable to fight open fair competition. HA HA HA ! THAT’S OUR 2ND MERDEKA DAY WOOOHOOOHHH!!!
____________________
BMW pushes for CO2 excise rate
Bangkok Post Auto 24/01/2012
BMW reaffirmed its position on the implementation of a carbon dioxide (CO2) emission-based excise tax rate for vehicles to enable Thailand’s automobile industry to achieve sustainable development and set a precedent for global environmental concerns.
Thailand’s current excise tax system for vehicles is calculated based on engine size and horsepower. BMW said engine displacement and horsepower are not indicators of an environmentally friendly vehicle as opposed to the level of CO2 emissions.
Thai governments have discussed BMW’s policy for many years, said Ronald Gentsch, managing director for vehicle distribution at BMW AG and honorary investment adviser at the BoI Fair 2011.
“With the Asean Economic Community coming in 2015, it will be crucial for Thailand to consider a long-term strategic plan for its automotive industry to achieve sustainable development,” he said.
A key component of sustainable development is CO2 reduction, especially as CO2 limits are soon to be enforced in many parts of the world.
If incorporated into Thailand’s excise tax, the restriction would encourage other automakers to invent and integrate new technologies for CO2 reduction.
Though a CO2-based rate would reduce excise tax income initially for the government, BMW argues tax income will gradually increase due to the multiplication effect of each vehicle and year.
Another method to implement a CO2-based tax would be to introduce an equal price on each gram of CO2 emitted with incentives for all vehicle segments to invest in fuel-saving technologies.
The BMW Group has been named the world’s most sustainable automobile company in the Dow Jones Sustainability Index seven years in a row.
Mr Gentsch, who previously headed BMW Manufacturing Thailand in Rayong province, said the company’s sustainability strategy is focused on efficient use of resources and conservation of the environment via its Efficient Dynamics technology (smaller engines with enhanced performance) and clean technology schemes (reduced energy consumption).
BMW Thailand sold 3,053 vehicles last year, up by 1.2% from 2010.
Bank Negara is correct to protect low-income buyers…it’s common sense…
But govt impose 75% car excise duty for ANY car below 1800cc regardless the car is full of safety spec, fuel-efficient engine, low CO2 emission level or not…that’s hardly common sense…
Otherwise, everyone from Protongkat, Perodua etc forced to give the safest, cleanest most fuel-efficient cars in the market
Then car price reflect its actual quality, worth, efficiency and surely reduced accordingly from maximum 75% price rate.
The issue here is not buyer credit profile but due to extra cost later on crap cars being overpriced (eg.Protongkat), limited choice (eg.PRotongkat), fuel-inefficient car extra fuel cost (eg.Protongkat), extra cost for repair rosak sana rosak sini time productivity wasted visiting workshop (eg.Protongkat), higher different loan interest rates (eg.Protongkat)…all of these extra cost crap that further affect car buyer dispossable income for car loans repayment in long run.
You see not only low-income folks not only pay overpriced junk cars but also must lots of other extra expenses. Unfair right??
If 75% car excise duty revised and based on Efficiency/Emission tests, all the above problem craps will slowly dissappear.
Cars below 1800c then fairly price reduced, people enjoy fuel savings (better engines), competition increase quality and also God Allah bless that Protongkat will close shop unable to fight open fair competition. HA HA HA!!! THAT’S OUR 2ND MERDEKA DAY WOOOHOOOHHH!!!
____________________
BMW pushes for CO2 excise rate
Bangkok Post Auto 24/01/2012
BMW reaffirmed its position on the implementation of a carbon dioxide (CO2) emission-based excise tax rate for vehicles to enable Thailand’s automobile industry to achieve sustainable development and set a precedent for global environmental concerns.
Thailand’s current excise tax system for vehicles is calculated based on engine size and horsepower. BMW said engine displacement and horsepower are not indicators of an environmentally friendly vehicle as opposed to the level of CO2 emissions.
Thai governments have discussed BMW’s policy for many years, said Ronald Gentsch, managing director for vehicle distribution at BMW AG and honorary investment adviser at the BoI Fair 2011.
“With the Asean Economic Community coming in 2015, it will be crucial for Thailand to consider a long-term strategic plan for its automotive industry to achieve sustainable development,” he said.
A key component of sustainable development is CO2 reduction, especially as CO2 limits are soon to be enforced in many parts of the world.
If incorporated into Thailand’s excise tax, the restriction would encourage other automakers to invent and integrate new technologies for CO2 reduction.
Though a CO2-based rate would reduce excise tax income initially for the government, BMW argues tax income will gradually increase due to the multiplication effect of each vehicle and year.
Another method to implement a CO2-based tax would be to introduce an equal price on each gram of CO2 emitted with incentives for all vehicle segments to invest in fuel-saving technologies.
The BMW Group has been named the world’s most sustainable automobile company in the Dow Jones Sustainability Index seven years in a row.
Mr Gentsch, who previously headed BMW Manufacturing Thailand in Rayong province, said the company’s sustainability strategy is focused on efficient use of resources and conservation of the environment via its Efficient Dynamics technology (smaller engines with enhanced performance) and clean technology schemes (reduced energy consumption).
BMW Thailand sold 3,053 vehicles last year, up by 1.2% from 2010.
Sokong penuh BNM! P1 & P2 cume memikirkan keuntungan semata2. Alasan kereta mamapu milik konon, padahal harga kereta tempatan masih mahal. Yg paling best, kurang pendaftaran kereta baru, kurang juga masalah trafik yg semakin buruk di KL!….
agreed!!..mau sales kasi turun harga keta laaa
I think the very root cause of the auto industry is the insane tax. New Honda Jazz is only rm50k++ in Langakawi and Labuan. For the rest of us,even Myvi SE is around that price and Jazz is like doubled the price.can anyone agree that the two cars have the same quality n safety?
In business, actually a company needs to be competitive enough to fight with other companies. This is not the situation in Malaysia. Actually when the Tariff was set, it should have a certain amount of years max. I still remember when we are about to implement AFTA in early 2000, the local industry said they are not ready and need more time. Mind you,what year is it now?
It’s true that we must separate politics and auto industry but to look back into our situation,who does actualy benefit from this rules? Rakyat or someone else?
Just my 2cent, remove the tariff, revise our HP loans. BNM is actually doing the right thing.
things start to yoes wrong when only 2 company complaints the rule implemented by the BNM.
I do not support any car company or political party. i just wish to see malaysian owns better car n live in better malaysia
An alternative way is for us manly people to build their own cars. Or do electric conversions of old cars. But currently the approving authority will never let it happen even if we can.
What would be nice is a set of clear specifications of a road legal car and unhindered process to get it approved. If a design goes through a FEA software, spits out and says ‘OK’ then it should be able to pass. The government can even say that only certain FEA software can be used.
If we can have huge multi ton vehicles able to be driven on the street, why can’t we drive a tin top? As long as the active and passive safety items are in the design and the finished product, why not? We then can have people make it on their own. But it would be too much to ask out of the government. Its too much to think out of the box. Industry lobbyist will put up a storm not to let it happen.
Of course not everybody wants to drive a skeleton car to work. Its meant for people who cannot afford to pay the compounded interest. Its back to the days of homemade tipper trucks. Its meant for people who really NEED a car. Its really up to the people to put things in it to make it comfy. As long as it is safe and that’s why the guideline should be there.
It might even open up a new niche industry. It doesn’t need a big establishment and lots of people. It needs a shed, welding machine and tools. If established players want a bite of it, they can sell their engines by the crate. Hey, I know it’s wishful thinking and it might not happen in my lifetime; but its a dream. Its a dream of getting Malaysians being creative again.
In capitalism world, the people have to be a consumer and producer.
when i was an undergraduate in us in 2004 , i bought 2nd hand car for $1k which is about rm4k. but looking at 2nd hand car price here it will eat quite a chunk of your salary, let alone a new one.
I fully support this new BNM guidelines.
Hurray to Bank Negara & let the car dealers sweat it out.Upon sustaining poor sales, only they will give offer & price reduction.So meanwhile boilkot the overpriced new car & hang on to your old faithful.
Mas just lost 2.5 billion, ….it’s okay if perodua and proton loses a billion or two. The money is being squandered anyway.
please lower the viva price to 10k rm , so that everyone can afford to buy the tin milo . the freaking alza just drive me crazy , the hq sc really have no customer orientation at all .please lah p2 , just close shop .
blame the gov and the cronies.
don’t blame BNM for trying to do good.
last 3 years i sold my datsun 120Y (tip top condition)..rm1.8K only…hehe..
Turun jer harga kereta… kenapa Labuan, Langkawi beri bebas cukai.. buat la 1Malaysia… baru best.. kalu tak bebas cukai pun turunkan cukai… kerajaan boleh buat dasar ni… kan LHDN dan dapat cukai melebihi target LUAR BIASA… sekarang kerajaan mesti buat yang LUAR BIASA untuk rakyat… RAKYAT DI DAHULUKAN. Bukan setakat tu.. harga rumah juga nak beli pun tak dapat… RAKYAT MALAYSIA hidup dengan hutang… konon jutawan dah ramai… tapi ramai lagi muflisan… tak berapa nak dahulukan rakyat tapi dahulukan jutawan yang dah kaya…
The real issue is the retail pricing. None of us really knows the real cost. The retail pricing includes taxes which are the major portion of the consumer pricing. These are Sales Tax, Excise Duty and Import Duties built-in into the components. The estimated impact of these taxes ~ 45%. So, if the Viva Retails at RM 30K, the Government directly or indirectly taxes ~ RM 13.5K. Imagine the revenue for the Government. At 60K units per year ~ RM 810M! And, the consumers still have to pay Road Tax and Tolls!
Estimated Costs of the Viva = Engine @ RM 3K; Transmission @ RM 1.5K; Body @ RM 3K; Electrical & Equipment @ 2K; Chassis @ 3.5K; Accessories @ 1.5K = RM 14.5K. So, roughly, Cost @ RM 14.5K + Tax @ RM 13.5K = RM 28K. Margin & Marketing etc. = RM 2K.
Go figure? The retail pricing can be lower if the Government reduce the taxes.
ok guys, I hope as much people as possible to help out my situation here… esp those taiko from above posts, cause most of u seems to hav a lot of experiences in cars plus politics etc…
I am a fresh grad, my monthly pay is around 4k per month, I dont hav any other loans or anyone else to feed apart from myself, no one is depending on me… and I need a car (which wont affect my work, cause for some people better car means better business = higher income.. This is not my case at all)… My parents are ready to giv me around 40-44k for a car… which car shall I get?
Was thinking of optima which costs around 143888… after giving the dp from my parents, left wit 100,000… and if for 5 yrs (interest 2.6%) then it’ll be around 1,900/mth…
Do you think this is a good idea for me or not?