We now know that there will be no increase in CKD locally-assembled vehicle prices for a period of one year until December 31, 2020, as announced by the Malaysian Automotive Association (MAA) to the media during its market review for 2019 and outlook for 2020 briefing earlier today.
This might not be the case for CBU fully-imported vehicles, because as MAA president Datuk Aishah Ahmad revealed, the formula for calculating their price has also been revised, albeit in a different manner to that of how open market value (OMV) calculations have been redetermined for CKD.
The changes to the CBU formula, which are slated to take effect on June 1, 2020, could well see prices of fully-imported vehicles fluctuate on a regular basis, determined very much by exchange rates. As Aishah pointed out, the current system of gazetted values have landed prices remaining the same once approval has been given, until a new model comes about.
“Previously, once you had gotten the approval for CBU, until the next model change or a revision to the model code, you could use the old gazetted value for as long as there is no change in the model description,” she said.
Under the new formula, every shipment will be calculated as is, no longer based on a one-time approval and blanket for all future units coming in. “Effective June 1, 2020, it will be based on the transaction value, where a CBU vehicle will have to pay duties based on the latest CIF value and also the latest exchange rate,” she explained.
“It will be based on the exchange rate the day the shipment arrives, and customs will use that to determine the calculation of CBU prices. Normally, principals will adjust CBU prices, some on a six-month basis, some on a one-year cycle, but now, it could be every week that when cars come in, the prices will be different,” she added.
Asked if the new OMV move will make carmakers move towards CBU instead of CKD, Aishah said “no, because CBU cars will go up as well.” There is of course the possibility that prices will also go down, should the forex rate become favourable.
The exact quantum isn’t known, but given that prices of CBU vehicles could keep changing every few months or when stock is exhausted and new units are brought in, car companies will either have to order in smaller shipment quantities or build in enough margin to absorb these changes.
Calculations for CBU vehicles are based on Cost, Insurance and Freight (CIF), to which import and excise duties are imposed. Excise duty is between 60% and 105% (regardless of CKD or CBU), calculated based on the car and its engine capacity, while import duty can reach up to 30%, depending on the vehicle’s country of manufacture.
While vehicles from ASEAN countries are not imposed with import duty, excise duties would still apply to their CIF pricing, and vehicles coming in from Thailand would be affected, given the strong performance of the Thai Baht at present.
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LOL the current government is doing all they can to lose the next General Elections! Please keep the circus going, guys. The whole country isn’t disappointed and frustrated enough yet.
They lost 5 CONSECUTIVE byelections. Maybe if they hold GE15 today they will most likely get booted out. In that case, we as citizen should do everything we can to force that early vote now. The time to UBAH BALIK is now!
#UBAH BALIK
BN will win fed again only if PAS is no longer allied to them. BN now is not what it was pre GE14
Not really. PAS had been taken for a ride by PH misusing their political goals. The bad image of PAS was the creation of PH trying to sully their image. Now when PAS is aware that cooperation and BN style moderation & consensus works, they have opened up and even embraced working with MCA in Tg Piai.
They definitely will loose. Miserable government. Good in making u-turns. They promised car prices will be down. Robbing citizens
Who wanted the Third national car?
It is the same person who wanted the first national car.
When first national was rolling out , all other cars were subjected to heavy taxes previously.
Now same thing for third national to be rolling out soon, that same person wants to increase the other car prices to please those in the gravy train to jump start the third national car sales later.
I do not blame PH Government but only that person who gave the order for the price increase to happen….
before X70 arrive,
we can buy Civic Corolla HRV sub RM99-RM105k starting price.
before X50 arrive,
we can buy Vios City sub RM75k starting price.
I hear Rakyat dont like Proton now. We like Proton Geely car models, but we dont like they are selfish, not open minded, bullying others. Even X70 at $30k is overpriced.
We should be getting Proton XC40 $33k – then it make sense.
USA is selling XC40 at $33k (with tax)
USA is selling Mini Cooper Countryman SUV $24k (with tax)
Bolehland is selling X70 at $30k.
Car Overpriced. yet no Free Toll, petrol removing subsidy.
LGE = Proton
#Protect
#Higher Tax, Naik Harga Kereta.
Proton = hicom
Hicom = syed (monopoly/croni)
LGE isn’t protecting Proton but those that came after Proton.
Manifesto now flush down the toilet. We all kena kencing kau kau.
From education reform (black shoes Vs reforming the entire education system) to flying car (grant given when we shouldn’t even consider another national car) to more racial politics from PH to increasing toll agreement duration to car price increase …..
From a new dawn for Malaysia, a new hope for better future to today’s despair, disappointment and hopelessness. But at least we alls still Syukur Msia Aman.
Habisla org2 kaya… Aq takde, sape nk payung? Lol
Rindu zaman Bossku. Keta murah, minyak murah, barang murah, kos sara hidup murah. Tak sabar bossku naik balik.
Malaysia is one of the top 5 most highest car price country in the world besides Brazil and North Korea. And I believe this will continue until forever.
so Europe car price better drop , since our ringgit has appreciate accordingly
Easy baypass for this.
Just import and store in a bonded area. Later bring them out and pay the taxes when the forex exchange is low.
See? Naik harga again. just like the previous Govt did.
The govt. has diferent people today, but all doing the same sh@tty job.
This is good, like our famous john used to say, tax the rich.
Of course now, he will change his story and condemn PH. But for 5 years, he always say it is very good to tax the rich.
ha ha ha
Betul. I still remember his old posts from the last 5 years.
When everything is going up, including car prices for the bottom to middle-class, how is this taxing the rich? This is more taxing the poor instead.
Yes and it works.
I rather he taxed the rich and he gave us lower car prices, lower petrol prices, lower taxes, lower tolls, BRIM, lower cost of living. At least he steals from the rich and gives back the poor.
Ever heard of Robin Hood? Nobody said he was the bad guy, instead in every book, movie, plays, stories, he is the hero.
Now PH is taxing the rich, the not so rich, and the poor. Then they come with the lame excuses to buy themselves Velfires & Accords using our money. Who does that? The villians in Robin Hood stories.
Yup. BN only tax the rich but feeds the poor.
Now PH is taxing the rich, cheating the M40, and robbing the B40. HAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!
PH promise slash cut price, rid of AP are all false promises, to make things worse, they want to increase car prices somemore
Trump did the reverse. Cut taxes and economy go up.
CKD and CBU all car better increase price 500%, sell a myvi RM150k, honda civic rm250k, BMW 3 series RM650k
this also good for avoid jam on the road…lolzzz
Complete U turn form manifesto .. we don’t want liars in the government . Looks like thief better la
Car prices in MY will not drop, period. No matter who is the gov.
The only thing is, even when everyone is complaining about car prices being ridiculously expensive, i still see tons of BMW, Merc, MiNi etc luxury cars on the road. Facts like this is why government think the rakyat is rich, since expensive also everyone can afford luxury brands. Then again, this is why the rich getting richer, the poor digging their own graves.
a lot of people buying kereta langkawai labuan or sg registered cars
Wow.. CBU to go up??? Current CBU price already so high… Up again then Mazda 3 2.0 170k? Altis from 150k? Camry 220k?
This is crazy..
what will happen to reconditioned car? As they are considered CBU too.