We’ve just seen one of the first effects of the new National Automotive Policy. UMW has just announced it’s passanger cars will be cheaper by 5.6% to 11% with the new tax structure, however MPVs like the Toyota Avanza and the Toyota Innova will be more expensive from now on.
The Toyota VIOS will be 5.6% cheaper, while the Toyota Corolla Altis will be 7% cheaper. Commercial vehicles like the Toyota Hiace and the Toyota Hilux prices will not be affected.
UMW shares rose 30 sen to RM7.55 today. UMW’s 38% stake in Perodua will enable it to participate in the incentives for local car manufacturers. Lower Toyota car prices are also expected to boost sales for the non-national car market.