New car prices in Malaysia are expected to increase due to the rising cost of raw materials following the weakening of the ringgit’s value, says the Malaysian Automotive Association (MAA). It added that this will be amplified further by the long-running chip shortage issue.
According to MAA president Datuk Aishah Ahmad, the increased costs that had to be borne by vehicle manufacturers means that there is a likelihood that new car prices will go up. She however said that manufacturers have not yet decided to increase vehicle prices and are continuing to absorb the extra costs, as Berita Harian reports.
“Rising raw material prices, logistics costs, the fall of the ringgit, among others, will eventually cause manufacturers to increase vehicle prices. However, it has not been decided yet,” she said.
She said she hoped the government would respond favourably to the appeal made by the association to extend the current sales tax exemption, which will end on June 30. “If the SST exemption, which will expire at the end of June, is not continued, it could worsen the situation and see a steep climb in prices if manufacturers decide to increase the price of their products,” she told the publication.
Local production is also continuing to be impaired by the continued shortage of semiconductor chips. In March, the association said that it would be quite a while before local production and supply returns to normal. Carmakers are also reporting production output issues as a result of parts shortages.
Earlier today, Honda Malaysia said that a delay in acquiring parts for new car production is resulting in inconsistent production output at its factory in Melaka, and that this would have an impact on vehicle deliveries to customers aiming to beat the SST deadline.
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when sugar increase 10c per kilo, one cup of coffee increase 20c (ya, they use almost 2kg of sugar per serving!). This is applicable to automotive.
Globally prices are increasing for everything, automotive too, and even luxury brands ie BMW are reducing specs while increasing prices. People just have to accept things are going to be more pricier on the general. Thankfully we live in Malaysia where necessities are subsidised by Gomen and shielded us from most of the crippling increases. #BetterNation
Year 2008 when Najib became Pm , USD1 = rm 3.80. Year 2018 when Najib stolen 1MDB money , USD1 = RM 4.40. It’s obvious the weakening ringgit is all Najib’s fault
Hahaha. This is the internet bro. Nak tipu siapa? According to XE historical exchange rate, the rate for April 2018 was USD1= RM 2.5 which is a huge improvement back when Najib took over.
xe.com/currencytables/?from=MYR&date=2018-04-30#table-section
PH macais better buckup, from DAP MP’s son to this another failed attempt, your propaganda are getting worse daily.
Buying cars in Malaysia is still a relatively affordable thing. Perhaps due to NAP or whatnot, the market is protected from the vast swings in global pricing. Try imagine car prices are like GPU prices today 2-3X of MSRP due to shortages, you will cry.
standard script.
Zero import duty if direct import cars from ASEAN countries (Indonesia, Thailand) but then imposed local excise duties taxes just to protect failed local brand.
Normal in Bolehland and when raw material prices drop the sales price still remains.
But this is price increase.
This is not a standard script. Please check the commodity prices…iron ore, steel, diesel, etc. What she says is true.
Despite our healthy current account surplus, with us being a net exporter of crude oil, natural gas and palm oil, the ringgit is still depreciating. There are 2 reasons for this:
1) Interest rates have been maintained at a low rate, while many countries have started raising interest rates. This has led to money leaving Malaysia, and hence the reduced demand for the ringgit has led to a lower forex rate. Now suppose the BNM has raised the interest rate, and the forex rate was maintained with the USD, we may not see the huge decline in ringgit value, but we would all face higher mortgage payments for our homes. I believe BNM has taken the decision in the best interest of the domestic economy.
2) I don’t believe people fully appreciate the value of the MOU signed between PH and the Government. Since the Sheraton Move, we have had political instability in the country. The political instability leads to policy paralysis, which then leads to uncertainty for long term investments, and eventually an economic downturn due to policy failures and u-turns. The MOU was very important to stabilize the politics, and hence the economics. One of the reasons that the ringgit is depreciating today is that the MOU will soon come to an end, and there is uncertainty about the political stability beyond the end of the MOU.
Foresee that used car price will be high over the next few years due to limited supply as owners are holding their cars much longer. Overall price for new cars, used cars and parts will be higher in the coming years.
yes. and slowly people migrate to ev if they priced it right
what to increase? last time civic rm128k can have it already. now, rm148k. accord rm148, now rm180k. smh. all this because to plotek protong and perutdua
bro, check price in thailand and indonesia for Civic, we are not far off.
Ibarat since they eat s***, you also eat s***?
Look at other countries like Australia the US, why can’t we be like them. Not like our roads system is anything similar to Thailand or Indonesia right ? we have better roads then everyone you mentioned, that’s why you must look elsewhere for example. Singapore is a worse comparison since they so tiny and got space problem hence the premium.
Countries like Aussie or the US here have personal income taxes that will make you cry compared to the pitiful sums you pay in Malaysia.
So if we eat sh*t here, you also want to share our sh*t, is it?
Nope