Volkswagen to maintain pricing strategy, end severe discounting policy – Tiguan CKD for Malaysia in 2017

VW Tiguan Frankfurt 7

Volkswagen Passenger Cars Malaysia (VPCM) says there are no plans to increase the current pricing of its Volkswagen model line-up in Malaysia despite the ongoing poor performance of the Ringgit against major foreign currencies.

The company will continue to hold with the present pricing for the immediate future, according to its MD Florian Steiner. “Even though the market is challenging right now, given the current economic volatility and the strength of the ringgit, Malaysia still remains one of our key markets,” he said at the press conference following the launch of the new B8 Passat yesterday evening. The event also saw the introduction of the Beetle Dune 1.4 TSI.

He added that the previous action of dealers handing out hefty discounts on cars is a thing of the past. “There will be incentives during festive seasons, but we won’t be seeing discounts of RM30,000 to RM40,000 again,” he stated. Previous promotional campaigns have actually seen higher figures that that being offered off the recommended retail price.

The brand, he added, will not be so focused on the volume of its sales, but instead shift its attention to presenting well-specified offerings in a bid to woo buyers. It was later revealed on the sidelines that the second-gen Tiguan SUV – which made its debut in Frankfurt last year – will go the CKD route here next year.

Under the previous management, the company sold around 6,400 vehicles last year, and Steiner says the figure is expected to be maintained at the same number this year.

Volkswagen passenger vehicles were previously distributed via Volkswagen Group Malaysia until September 1 this year, when Porsche Holding Salzburg (PHS) was appointed as the new official distributor, trading as VPCM. Founded in 1974, PHS is a holding company which is actually an entity separate from the famed Stuttgart automaker. The company began life as a VW importer in Austria, and its automotive business has diversified since, including financing and retail in its portfolio.

GALLERY: Volkswagen Tiguan GTE and R-Line at IAA Frankfurt 2015

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • When business need sales sure they fire crazy discount one. Now Passat 2015 only worth 75K, is one great example.

    Like or Dislike: Thumb up 34 Thumb down 12
    • Kunta bin Kinte on Nov 17, 2016 at 4:46 pm

      When you go to a village and you are about to cross a river, some villagers tell you there are many crocodiles in the river. Infact few months ago a boy was killed in the river eaten by a crocodiles(s) (DSG issue still there).

      But some villagers on the other hand tell you, that was the past, now the river is free from crocodiles. No more crocodiles (DSG has been cured)

      Would you dare to cross the river now?

      Like or Dislike: Thumb up 32 Thumb down 7
      • the.mechanic on Nov 17, 2016 at 8:35 pm

        Again!?? Bising people are from rival village lar. Jealous of this village with nice huts, beautiful fertile women and land, and has a bountiful river flowing nearby.

        Like or Dislike: Thumb up 3 Thumb down 12
        • need not Very Worry on Nov 17, 2016 at 11:55 pm

          Got more money, buy BMW Mercedes 300-400K lo. Limited money. Just buy Camry 2.0 low maintenance and 2 years still worth 100K.

          Like or Dislike: Thumb up 5 Thumb down 2
        • Pinocchio on Nov 18, 2016 at 12:01 am

          Trust needs to be earned. Lets wait 3-4 years to see whether they got lie or not…

          Like or Dislike: Thumb up 4 Thumb down 0
        • pasti rugi teruk on Nov 18, 2016 at 9:43 am

          owner volkswagen dah pon marah nk buang brand ni. mane org dare beli lg?

          Like or Dislike: Thumb up 1 Thumb down 0
      • james on Nov 17, 2016 at 8:49 pm

        As existing VW owner. I really really had enough with this brand. I will surely opt for BMW or Merc than this half-baked potato. VW depreciation is much severe than BMW or Merc.

        Like or Dislike: Thumb up 27 Thumb down 2
    • We can wait. Waiting 2-years old B8 down to 80K

      Like or Dislike: Thumb up 22 Thumb down 3
    • Professor on Nov 17, 2016 at 6:09 pm

      Buy VW now! B4 harga Naik !!

      Like or Dislike: Thumb up 3 Thumb down 15
    • Sam Loo (ori1) on Nov 17, 2016 at 7:15 pm

      Same fate as kimchis

      Like or Dislike: Thumb up 0 Thumb down 9
      • Tim Tam on Nov 17, 2016 at 10:07 pm

        Kimchi is dead la dei Samy Loo. At least VW sales in Msia still up month by month.

        Like or Dislike: Thumb up 0 Thumb down 8
        • eddie on Nov 21, 2016 at 10:03 am

          oh ….sorry to disappoint you …but October sales was just release and VW sales down by 50%

          Like or Dislike: Thumb up 0 Thumb down 0
  • passion on Nov 17, 2016 at 2:41 pm

    After sales service needs SEVERE improvement. they cant even pickup the calls on time!
    VW you need to ‘Pickup the phone by the 3rd ring’
    A basic service of changing the oil and filter need not take up the whole day!
    Gain our trust again!

    Like or Dislike: Thumb up 47 Thumb down 5
    • seancorr (Member) on Nov 17, 2016 at 4:47 pm

      Wait until u call BMW dealer after sales numbers. They don’t even pick up the calls after 3pm….as if no one is working by then.

      Like or Dislike: Thumb up 10 Thumb down 5
    • Kunta bin Kinte on Nov 17, 2016 at 4:51 pm

      VW just launched the Passat.

      But, Passat is a bad word in the Malaysian car industry. I advice people, instead of spending RM200k, just buy 2nd hand for RM70k after 1 year later.

      Now, even 2014 Passat cars cannot sell. No used car dealer wants to touch the car cause nama busuk due to the DSG. Infact, nobody wants to touch any VW cars! VW Malaysia has kelentong the rakyat saying that using mineral oil has solved the DSG problem.

      The new Passat car use wet DSG also will be the same, don’t worry. It is not DSG that people fear VW. It is the constant repairs and visits to the SC that hurts the wallet.

      Even in 2016, people who are using mineral oil still seeing their DSG breaking down (wet or dry). And it is pretty sad, that you buy a German high performance car and you are told not to use fully synthetic but mineral oil.

      Previous Passat and Jetta prices dropped so much because VW Malaysia themselves do firesales and sell their previous Passat at RM120k. So, 2nd hand market follows suit. It just drops like crazy.

      If you really want the new Passat or the Tiguan, wait for 1 year. Buy the RM200k Passat for RM100k. Cause in a few months time, VW Malaysia themselves will sell this RM200k Passat for RM130k.

      VW Malaysia say they won’t throw prices. How to trust them? They have lied for more than 10 years now, starting from DSG denial to all sorts of denials.

      Like or Dislike: Thumb up 18 Thumb down 14
    • Talk Is Cheap on Nov 17, 2016 at 6:53 pm

      Gain trust? Perhaps they should offer rebate to existing VW owners to buy again their car la. Else, I rather opt for BMW, MB or cheaper Japanese. No need to stuck in the middle. (Not premium but more expensive than Japanese brands)

      Like or Dislike: Thumb up 12 Thumb down 4
  • RicoT on Nov 17, 2016 at 2:42 pm

    Sure boh…

    Like or Dislike: Thumb up 8 Thumb down 1
  • Golfer on Nov 17, 2016 at 2:55 pm

    Time to save money for the Tiguan. Can’t wait to own it.

    Like or Dislike: Thumb up 13 Thumb down 9
  • Thoo Chin Wee on Nov 17, 2016 at 3:01 pm

    Well-specified offerings in a bid to woo buyers? Haha, keep woo-ing mein freund !

    Like or Dislike: Thumb up 6 Thumb down 7
  • We want Langkawi car prices on Nov 17, 2016 at 3:07 pm

    In another words you guys still want to continue charge premium car prices? It clearly shows that strategy is not working, so good luck clearing your stocks. I find it amusing that you Volkswagen guys still syok sendiri thinking VW is a premium brand, tapi aftersales and product reliability is the worst of any kind. If you guys still want to belong in the market by winning the Malaysian hearts, drop all your problematic models and price it similar to a Honda cars with matching specs and you might just win Malaysian hearts. What is even foolish that even they admit that car sales ain’t gonna improve and still want to make fat RM30,000-50,000 on every of its CKD cars judging that they and the dealers still make money. Again, we Malaysians are overcharged! IF you dare, publish your Langkawi car prices

    Like or Dislike: Thumb up 32 Thumb down 11
    • Ex VGM staff on Nov 17, 2016 at 4:27 pm

      No, they don’t dare publish. Just look at its website.

      Like or Dislike: Thumb up 1 Thumb down 0
  • No problem. Just don’t buy, then we will see how you respond

    Like or Dislike: Thumb up 22 Thumb down 4
  • Vincent on Nov 17, 2016 at 3:35 pm

    Emm…at least you notice one of the main wrong do of VGM in Malaysia.

    Pls continue work on below:
    1) How you going to re-gain confident of used car dealer, not to press down VW used car value?
    – My 2 cents –
    Strategy one, form your own used car company to trade in VW car at more reasonable value, if your VW customer would like to get another VW model.
    Strategy 2 – VW never had DSG issue in cool weather like Germany. Make sure ur new form used car company had own work shop, which could import those used DSG gear box from Germany (total loss car). This is to make DSG gear box replacement more affordable and reasonable. Today, brand new DSG replacement cost around 50K. Target to sell the used, recond DSG gear box at around 10K.

    2) How you going to convince people that DSG gear box issue is resolved by using mineral gear oil ? I mean your DSG can now last for more than 120K KM?
    My 2 cents – If your solution is genuine, you shall start to publish statistic of DSG failure case, break down by year of the car, model and mileage. You need to consider the risk of getting VW old customer sue as this is admitting problems, but no recall.

    3) How you going to gain royalty, make your customer proud of promoting VW car? You know it has become a shame in Malaysia that you drive a VW cause people is waiting for VW owner car to be sent into workshop for DSG replacement!
    My 2 cents – After Challenge one and two resolved, you shall hold more VW family day, driving lesson, VW owner get together activities …

    Like or Dislike: Thumb up 23 Thumb down 12
    • Mohd Faiz on Nov 17, 2016 at 4:13 pm

      first of all, you must differentiate the meaning of word ‘royalty’ versus ‘loyalty’..

      Like or Dislike: Thumb up 1 Thumb down 4
    • Milisec on Nov 17, 2016 at 5:33 pm

      Are you still ranting over stale news? Get over it and move on. This issue has been resolved in the ckd models.

      Like or Dislike: Thumb up 3 Thumb down 11
    • crash on Nov 17, 2016 at 6:49 pm

      Agree. Just look at Toyota. They have TopMark that sells their second hand car. That will have some effect on the market second hand value.

      Rather than fiddling around with the dry clutch DSG . Why not just scrap it off altogether. So far the wet clutch version doesn’t give much problems.

      Just like Australia, just offer 6 speed manual variants for Jetta and Golf TSI. At least the buyer is assured that the gearbox is not problematic as a purely mechanical gearbox hardly will go wrong. It will be cheaper too.

      Offer 10 years warranty on the DSG gearbox just like China market will instill some confidence in your buyer.

      Like or Dislike: Thumb up 11 Thumb down 1
  • passat on Nov 17, 2016 at 3:42 pm

    Dang!! bru plan nak purchase discounted new passat within 1 or 2 years time….spoil btul!

    Like or Dislike: Thumb up 5 Thumb down 7
  • Ben Yap on Nov 17, 2016 at 4:02 pm

    really no drop everything discount?

    alright, honda is the way to go. consumers can wait.

    Like or Dislike: Thumb up 4 Thumb down 0
    • camtakpro on Nov 18, 2016 at 7:58 am

      VW (now): Increase Everything Carnival.
      VW (1yrs later): Drop Everything Sales.

      Like or Dislike: Thumb up 0 Thumb down 0
  • I don’t see any new Vento and new Jetta on the road.. keep on holding the price VPCM and see wat happen to your sales figure..
    unless you give 10 yr warranty on engine n gearbox..

    Like or Dislike: Thumb up 1 Thumb down 0
    • Lawson on Mar 07, 2017 at 8:07 pm

      VWM should ASAP change over to wet DSG for Vento and Polo & Jetta. Get yearly sales up to 25,000 cars in 3 years time. Publish in the internet on spare parts price. Vento one to one spare parts price should not be more than what Honda charges for City. I have two Hondas and perhaps adding a Vento will not be that far fetch after all!.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Mikey on Nov 17, 2016 at 4:48 pm

    I really pity VW in M’sia. Every time a new/face-lift car is introduce, the bashing will come without asking. Common VW, how can you take this lying down !

    Having said that, you better maintain your price & NOT throw discounts like B4 otherwise many of your existing customers will NEVER Ever buy another VW in their life.

    It is good that you have come out to say you will not throw heavy discount again & you better improve your services bcos your customers are the BEST advertisement $$$ cannot buy.

    Like or Dislike: Thumb up 5 Thumb down 0
  • franklyspeaking on Nov 17, 2016 at 5:08 pm

    Too many spammers commenting here. Perodua issued statement they are going to take action against people spamming their products. VW and Toyota should do the same. Spammers normally target cars that sell well. So no surprises here. All are paid agents.

    Like or Dislike: Thumb up 6 Thumb down 6
  • autodriver (Member) on Nov 17, 2016 at 5:28 pm

    It is great if VPCM can maintain the price without giving huge discounts like 30-40k. But is this workable is remain a big question mark. The major problem is the terrible brand image of VW in Malaysia where people lack of confident on any of your models using dry clutch transmission. Second thing the previous model used car value is surprisingly bad. The great depreciation was pointed to VW giving huge discount on “pre-reg” model for stock clearance. Btw how confident VPCM can avoid old stock clearance or low sales figure especially the new Passat is wrongly priced. I am highly suspect new Passat going to give 20k discount when sales is not doing well since the price was high. If VW Passat entitled with EEV incentive like its Jetta, it is absolutely wrong pricing on Passat then.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Semi-Value (Member) on Nov 17, 2016 at 6:16 pm

    good luck la ok

    Like or Dislike: Thumb up 4 Thumb down 0
  • Paul Chen on Nov 17, 2016 at 6:56 pm

    I will pay full price. No promo needed for me. If u guys want promo then dun buy VW. I own a passat. Terrible car with terrible value. Gals also lali ooooo

    Like or Dislike: Thumb up 5 Thumb down 3
    • petergriffin on Nov 18, 2016 at 8:48 am

      The Passat is not really a bad car, sure it lacks comfort of its Japanese counterparts and not exactly a looker (uncle car), but the performance is good. Sure it is a turbo-engined DSG-equipped vehicle, take care of it religiously and it will serve you well. Mine is now nearing 100k mileage without any DSG issue.

      Like or Dislike: Thumb up 1 Thumb down 0
      • KickingDust on Nov 18, 2016 at 3:46 pm

        Just curious, do you follow the specific service interval , or practise Preventive Service Maintenance in between ? What brand of fuel
        & RON do you normally pump ?

        Like or Dislike: Thumb up 0 Thumb down 0
  • Concerned Consumer on Nov 17, 2016 at 7:15 pm

    Give 10 years manufacturer warranty for the dry DSG gearbox. Stop overcharging on price of car and parts.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Jimmy on Nov 17, 2016 at 10:13 pm

    Why would I choose a Tiguan over a pre-reg X1 ?

    Like or Dislike: Thumb up 5 Thumb down 2
    • petergriffin on Nov 18, 2016 at 8:51 am

      Because the X-1 is an ugly lump….? Even Jeremy Clarkson called it out. But I guess the 2015 model is a huge improvement over its predecessors.

      Like or Dislike: Thumb up 1 Thumb down 0
  • All VW SC think that the owner is very free and has multiple car to use. Made appointment at 9am, reached 9am, never touch anything on your car till you sounded them loudly.

    When it’s your turn, they will tell you they need time to check, please leave the car overnight.

    When are you going to change?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Please improve your SC services. They are the poorest.
    1) Nobody pick up phone call
    2) Long delay to change parts. Make appointment 1 months earlier. Send in my car, only on day 2 you guys start work. Parts can be changed within few hours at outside workshop you guys take 3-4 days.
    3) Fussy warranty claim.
    4) Very Very expensive services with inferior parts. eg brake pad.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Saitam on Nov 18, 2016 at 11:04 am

    I am confident, that there will be another crazy sale. This time a closing down sale…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Cheatwagon are good at cheating, wonder what else they have been lying about..??

    Like or Dislike: Thumb up 0 Thumb down 0
 

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