BMW Malaysia says no price increase in sight, confirms ongoing discussions for EEV incentives

2015-bmw-malaysia-alan-harris-sashi-ambi 007

Speaking at the local launch of the new X1 compact SUV, BMW Malaysia announced that it would not be increasing the prices of its models any time soon.

“At the moment, we are absorbing any additional costs that come our way,” Allan Harris, managing director and CEO of BMW Group Malaysia said, in response to whether the troubling ringgit devaluation would affect the prices of BMW cars here.

“With the current exchange rate at (the lower half of) RM4 to the US dollar, the company is still able to cope. But should it go up to the RM5 or RM6 mark, we might have to reconsider our position,” he added.

BMW X1 Main

On the back of those circumstances, BMW Malaysia also confirmed that it has applied for the government’s “customised incentives” for Energy Efficient Vehicles – the same incentives that saw the reduction of Mercedes-Benz Malaysia’s C-Class prices yesterday, and are awaiting the results of this.

“Every manufacturer in the industry is in discussion with the government, applying for the EEV incentives. However, given that these are customised incentives, each manufacturer may not get the same. We are certainly in talks (with the government), and as soon as we know what the results of those discussions are, we will announce something new,” Harris explained.

At the same event, BMW Malaysia also announced its year-to-date business performance figures – the company has shifted 5,222 BMW models, 555 MINI vehicles and 745 motorcycles under BMW Motorrad, making 2015 performance figures for the group up to this point 5,777 passenger vehicles sold, and if motorcycles are added, 6,522 units in all.

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Chris Aaron

With an equal passion for fast cars and everyday workhorses, Chris Aaron maintains a passion for European makes, Formula 1, playing the electric guitar and spending endless hours on the PlayStation - first-person shooters and the Gran Turismo franchise are his favourites. He also finds it strange to have written this in the third person.

 

Comments

  • bavarian on Oct 09, 2015 at 2:01 pm

    without forex hedging like its competitor
    BMW Sime Darby is caught btw a rock & a hard place
    can’t even raise pricing now
    can only see mkt share cont to drop

    Like or Dislike: Thumb up 3 Thumb down 3
    • Please Don't Lie BMW Malaysia on Oct 09, 2015 at 2:17 pm

      Pls don’t bluff lah CEO. You guys are making a killing from each car sold. If US can sell at these prices and still make untung big time, I don’t know how much more you guys are making. So, pls don’t lie that you are absorbing the cost.

      BMW 328i sold for USD30k. Here RM300k
      BMW 528i sold for USD49k. Here RM428k
      BMW 535i sold for USD55k. Here RM600k
      BMW X5 sold for USD$50k. Here RM590.

      Our tax and excise max out at 130%. You guys get at country distributor prices. So, an example, X5, BMW Malaysia will get it for USD$35k. But sell for RM590k.

      Mana logic Allan Harris???

      Like or Dislike: Thumb up 26 Thumb down 11
      • jinggo on Oct 09, 2015 at 2:31 pm

        Yang membeli kete harga mahal macam lahanat ni pun sama bengong, cuba pakat ramai2 boikot tak yah beli.. konfem gomen & penjual kete ni gelabah.. ada kuasa sebagai pembeli tp tak reti nk guna.. belajar smpai masuk U tp akal letak kt lutut.. last last gomen membangsatkn pembeli kete kt malaysia ni.. hahahaha!

        Like or Dislike: Thumb up 7 Thumb down 8
        • Songlap Songlap Malaysia on Oct 09, 2015 at 5:38 pm

          Don’t forget, the above prices are for CBU. Much higher quality than our jamban made CKD BMWs.

          So, our BMW prices must be even cheaper being CKD and Made in Malaysia.

          Like or Dislike: Thumb up 4 Thumb down 0
      • Normal Rakyat on Oct 09, 2015 at 5:00 pm

        I’m no fan of any particular brand but cannot stand hearing from a typical sore thumb loser who does not know what is the actual situation and automotive sales tax and import duty structure in this country. How could you ever do a plain mirror comparison btw US and Malaysia’s prices? Not like you were born today to know that. It’s also because of our beloved Govt protecting the local players, legacy issue and still prevails. Don’t just jump the gun and comment sparingly. I believe all players at every supply chain level of our automotive industry are severely affected as well. If there are automotive principals who can pass on the tax relief they will definitely do it like Merc, good for us. I’m sure others like BMW, Audi, Lexus, Jaguar, Porsche and etc applies the
        same to be competitive at that segment.

        Like or Dislike: Thumb up 8 Thumb down 1
        • Songlap Songlap Malaysia on Oct 09, 2015 at 5:36 pm

          One man can songlap RM2.6 billion is just one news we know. What about the other times he songlap that we don’t know about? I think it runs to hundreds of billions.

          Taib songlap US$20 billion (RM80 billion) also nothing happen to him. Infact he was rewarded for his songlap and made Governor and given Tunship.

          What about the songlaps by the other Menteri and Government officials?
          It all runs to hundreds of billions per annum the Songlap.

          This is why we get low spec lousy cars with super high prices. Our guardians are more interested in Songlap than fighting for the rakyat to get good and safe cars that are also reasonably priced. Even more so when the Guardians (government) themselves own BMW Malaysia (through crony Sime Darby)

          Like or Dislike: Thumb up 7 Thumb down 2
        • Ya you are spot on all these whiners are sore thumb loser merc salesman, the come to very BMW and copy and paste all their previous comment and repeat the same thing on and on.
          How stupid they can be when start to compare USA price and Malaysia price on BMW but never compare the merc USA price with merc Malaysia price.

          Like or Dislike: Thumb up 0 Thumb down 2
  • BMW helping Gov by keeping prices unchanged. So meaning BMW is kroni kompeni and should dihalau keluar.

    Like or Dislike: Thumb up 3 Thumb down 13
    • John is Otak Batu on Oct 09, 2015 at 4:26 pm

      What about Perodua as local car? Still want more $$$$$ from rakyat. .what u mame them?…Bangsat!!

      Like or Dislike: Thumb up 3 Thumb down 1
      • Perodua raise prices so that pipu like you will rage against Gov. This is to help PR and Bersih. So it is dihalalkan.

        Like or Dislike: Thumb up 2 Thumb down 4
  • seancorr (Member) on Oct 09, 2015 at 2:12 pm

    MBM is pushing forward and I bet BMW Malaysia will not sit ideally while their share market shrinks. Here’s hoping they will come out with some new pricing from the EEV scheme.

    Like or Dislike: Thumb up 6 Thumb down 1
  • sudonano (Member) on Oct 09, 2015 at 2:14 pm

    The problem is this whole EEV incentive thing isn’t standardised – as in if they meet the requirement, they automatically get the rebate.

    That’s the reason why it took BMW and Merc this long to get EEV rebates.

    Like or Dislike: Thumb up 7 Thumb down 0
    • Letstorque on Oct 10, 2015 at 10:35 am

      Yes. I absolutely agree.

      This type of arrangement is not transparent and open for corruption.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Anti-Fuel-Price on Oct 09, 2015 at 2:33 pm

    UMW Toyota increase price so effective, safety kits/features took ages to implement on its cars. Btw EEV suppose to be clean & efficient vehicle or Hybrid?? Kind of confuse over EEV incentives.

    Like or Dislike: Thumb up 7 Thumb down 0
    • dugongx on Oct 10, 2015 at 3:25 am

      Only 2 exxtremely greedy auto companies in bolehland are increasing prices. Bloodsucking UMW and Perutdua. Please everyone boycott these 2 bloodsuckers.

      Like or Dislike: Thumb up 0 Thumb down 0
  • ujang on Oct 09, 2015 at 2:46 pm

    itu hari baru cakap mau naik harga
    ini BMW CEO pun hari2 makan nasi lemak la~ kihkih

    http://paultan.org/2015/09/10/bmw-malaysia-mulls-price-hike-weaker-ringgit/

    Like or Dislike: Thumb up 2 Thumb down 2
    • applegreen on Oct 09, 2015 at 5:18 pm

      Maybe they’re shocked by Mercedes not to increase price?

      Like or Dislike: Thumb up 4 Thumb down 0
      • sohhai on Oct 09, 2015 at 8:53 pm

        Who knows? Maybe MBM already increased the price. Maybe the EEV incentives they got is supposed to be more but they did not reduce the price from 100% of the EEV savings but only a percentage of it. So in this way, they already increased the price. But I guess we’ll never know

        Like or Dislike: Thumb up 1 Thumb down 0
 

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