Perodua to minimise impact of new excise duty regulations, was not consulted beforehand – CEO

Perodua to minimise impact of new excise duty regulations, was not consulted beforehand – CEO

The new excise duty regulations recently imposed by the government have potentially major implications on the prices of completely knocked down (CKD) locally assembled vehicles. It’s a hot topic right now – not least because hikes of as much as 15% are projected – and Perodua has assuaged customers that it will try to minimise the impact of these rules on car prices.

Speaking at a press conference during its 2019 full-year review, president and CEO Datuk Zainal Abidin Ahmad said the national carmaker has complied with all the government’s requirements with regards to this issue, and that it sees no discernible change in prices in the short term.

“We have been following all the requirements given by the government as far as the calculations are concerned. We are still evaluating what’s the impact for us, but rest assured, for the next few months, there will be no impact to the industry and we will not increase our prices.”

Perodua to minimise impact of new excise duty regulations, was not consulted beforehand – CEO

Zainal added that because it intends to reduce any price increase that may result from these regulations, it predicts stable sales throughout this period. “At this moment we are trying to minimise the impact and as much as possible we [will avoid] passing the impact to our customers. Based on this understanding and principle, we feel our volume will remain stable with all this.”

On the subject of industry participation, Zainal said Perodua had no part in the drafting of the regulations. “We have very frequent engagements with the government, particularly on items in relation to the development of the local automotive industry. But specifically for excise duties, no, we were not consulted. That’s why we are in discussions with some of the members of MAA to try to evaluate what is the impact of this.”

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Roti john Sdn Bhd on Jan 21, 2020 at 3:03 pm

    Perodua Game Changers will still be affordable for everyone as Perodua will not increase the price. So people who are planning to buy Perodua Game-Changing cars shouldn’t be worried

    Like or Dislike: Thumb up 6 Thumb down 10
    • Whatever it is, Malaysians are proud of Perodua, From Day 1, they have been making profits of billions per year.

      Do you know since inception, Perodua has paid more than RM1 bil in company tax yearly to LHDN?

      Proton pulak has been given tax exemption from LHDN. They have not paid a single sen of tax the past 20 years because loss making

      Worse still, they have taken RM20 billion in bailouts. Perodua has never taken a single sen of bailouts.

      So, in total, Proton losses are more than RM40 bil in past 20 years. No contribution to society at all.

      Perodua has paid so much of company tax, over RM25 bil in total and this money has been used to build schools and hospitals for the rakyat

      Thank you Perodua. You make us PROUD of you

      Like or Dislike: Thumb up 5 Thumb down 10
    • Only BTSH buy overpriced Perodua.

      Like or Dislike: Thumb up 3 Thumb down 2
      • Cannot respect other people’s choices ah? Why you insult everyone?

        Like or Dislike: Thumb up 8 Thumb down 8
    • ilovemadey on Jan 21, 2020 at 4:58 pm

      pfft..don’t be so confident..tired already with all the kencing and taik from the nobita..at last still increase price..game changing? they just know how to game people

      Like or Dislike: Thumb up 8 Thumb down 3
  • seancorr (Member) on Jan 21, 2020 at 3:04 pm

    New government but same methods and practises. How can they not consult stakeholders beforehand. It affects the economy and livelihoods of the rakyat.

    Like or Dislike: Thumb up 13 Thumb down 0
    • Dedak Malaysian on Jan 21, 2020 at 3:56 pm

      same abang abang running the Government bro. Only Cabinet has changed. All those Sec Gen, Pengarahs etc all remain the same. Lazy to the core and want everything easy and free.

      Dulu dedak sekarang pun dedak bro

      Like or Dislike: Thumb up 1 Thumb down 6
  • vivizurianti on Jan 21, 2020 at 3:13 pm

    blah, blah, blah…….and the end result will likely to be…Naik Harga.

    Like or Dislike: Thumb up 11 Thumb down 4
    • Why are our cars Expensive?? on Jan 21, 2020 at 4:01 pm

      All over the world, car prices are going down. Only in Malaysia, car prices going higher and higher.

      Toyota Corolla (Altis) in Malaysia in 1988 was RM20k
      Toyota Corolla (Altis) in Malaysia in 2020 is RM140k
      Toyota Corolla (Altis) in Maalysia in June 2020 is RM180k

      But in Japan, Toyota Corolla from 1988 to 2020 only gone up 50% in price.

      In summary,

      In Japan from 1988 to 2020 – 50% naik harga
      In Malaysia from 1988 to 2020 – 700% naik harga

      Why our cars naik harga? The answer is very clear. All our car companies are Government owned. Except for Tan Chong and a few others, all are Government owned.

      For 40 years, Government squeeze us maximum kaw kaw.

      Honda – DRB
      Toyota – UMW
      Proton – DRB
      Perodua – UMW
      BMW – Sime Darby
      Hyundai – Sime Darby
      Ford – Sime Darby

      All GLC. All to support GLC and their pemalas workers.

      Like or Dislike: Thumb up 2 Thumb down 4
    • Awang Selamat on Jan 21, 2020 at 4:02 pm

      Why the Government needs more money by increasing tax on cars? the answer is very simple. They have to sustain and support and pay the overbloated 1.6 million Government servants in Putrajaya.

      This is the problem in Malaysia. We employ people for the fun of it and give them jobs eventhough the job is not needed.

      Like or Dislike: Thumb up 3 Thumb down 6
  • Gabriel on Jan 21, 2020 at 3:36 pm

    Malaysia Baru – Pasti High

    Like or Dislike: Thumb up 1 Thumb down 0
  • azrai on Jan 21, 2020 at 3:48 pm

    Since Ringgit are getting stronger day after day (today RM4.05 vs USD), instead of price hike P2 should think about price reduction.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Another U Tun iniative to protect cronies

    I didn’t vote for this in GE-14

    Or did I read wrong manifesto

    Like or Dislike: Thumb up 3 Thumb down 1
  • C.P. MOHAN on Jan 21, 2020 at 5:33 pm

    Since you are talking about excise duty also talk about profit margins, hope not a secret, so customers and taxpayers like me gets the complete-picture.

    Like or Dislike: Thumb up 1 Thumb down 2
  • Proton oh Proton on Jan 21, 2020 at 5:50 pm

    Janji di capati

    Like or Dislike: Thumb up 0 Thumb down 0
  • Not Toyota Fan on Jan 22, 2020 at 8:28 am

    Terima Kasih Pakatan Hopeless.

    Manifesto di ketepi kan. Rakyat di perbodoh. Lebih cukai, lebih began Rakyat.

    Meanwhile, Minister semua dapat kereta baru. Syukur Msia Aman.

    Like or Dislike: Thumb up 0 Thumb down 2
  • C.P. MOHAN on Jan 22, 2020 at 10:13 am

    Prices of cars is expensive because we are “wholesalers” not manufacturers, market size made smaller by competition and the RELATIVELY high labour cost within ASEAN. My point though is whether PERODUA is a ‘disguised-Japanese-marque’

    Like or Dislike: Thumb up 0 Thumb down 1
 

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