Weakening ringgit could see increase in new car prices, as costs of raw materials go up – MAA

Weakening ringgit could see increase in new car prices, as costs of raw materials go up – MAA

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.

Weakening ringgit could see increase in new car prices, as costs of raw materials go up – MAA

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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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

  • dong gor on May 11, 2022 at 1:37 pm

    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.

    Like or Dislike: Thumb up 28 Thumb down 3
    • Rakyat Malaysia on May 11, 2022 at 3:36 pm

      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

      Well-loved. Like or Dislike: Thumb up 99 Thumb down 12
      • Ghani on May 11, 2022 at 10:59 pm

        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

        Like or Dislike: Thumb up 15 Thumb down 24
        • Troll Hunter on May 12, 2022 at 12:54 pm

          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.

          Like or Dislike: Thumb up 9 Thumb down 8
    • Angry Voters on May 11, 2022 at 11:52 pm

      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.

      Like or Dislike: Thumb up 8 Thumb down 2
  • david on May 11, 2022 at 1:49 pm

    standard script.

    Like or Dislike: Thumb up 7 Thumb down 1
    • No Free Lunch on May 11, 2022 at 4:51 pm

      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.

      Like or Dislike: Thumb up 9 Thumb down 0
  • seancorr on May 11, 2022 at 2:31 pm

    Normal in Bolehland and when raw material prices drop the sales price still remains.

    Like or Dislike: Thumb up 20 Thumb down 0
  • Bingo on May 11, 2022 at 2:34 pm

    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.

    Like or Dislike: Thumb up 17 Thumb down 6
  • 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.

    Like or Dislike: Thumb up 3 Thumb down 0
  • meladam on May 11, 2022 at 3:45 pm

    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

    Like or Dislike: Thumb up 9 Thumb down 8
    • bro, check price in thailand and indonesia for Civic, we are not far off.

      Like or Dislike: Thumb up 14 Thumb down 2
      • John Dough on May 11, 2022 at 5:53 pm

        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.

        Like or Dislike: Thumb up 7 Thumb down 12
        • Aura89 on May 11, 2022 at 11:54 pm

          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?

          Like or Dislike: Thumb up 9 Thumb down 1
    • Aikon on May 12, 2022 at 8:57 am

      Nope

      Like or Dislike: Thumb up 1 Thumb down 0
 

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