The early bird doesn’t always catch the worm, at least not anymore these days. The Malaysian Automotive Association (MAA) opines that the car price war in Malaysia, which has seen price cuts and discounts in a bid to chase sales, is neither good for the industry nor owners in the long term.
“I think discounting is always good for the short term, but it’s not good for the long term, especially for customers. Eventually the car’s value will drop further – especially for the early buyer, you will actually lose out, and it will create a much more non-effective way of selling, because it will be short term,” said president Mohd Shamsor Mohd Zain.
“Of course, definitely there must be some kind of promotions, but overdoing it is always not good. Basically I think we’re all on the same page about that,” he added.
Here are some examples of the latest offers – Honda is currently giving up to RM10k off, Toyota up to RM10.5k, Proton RM15k, Chery RM16k, Mitsubishi RM18k, Nissan RM22k and Peugeot RM30k – and that’s even before we go into EVs, where the drops are almost diabolical.
Proton recently said it won’t be joining the price war in Malaysia in a bid to protect resale values – even though it arguably started the war in the first place by significantly undercutting the BYD Atto 3 (it has since decided to make the RM4,000 ‘early bird discount’ permanent).
BYD responded with the Atto 3 Ultra in March – down RM26k to RM124k (RM119k with rebate). The Atto 3 was launched in end-2022 for RM168k, so that’s a near-RM50k drop. Then the Chery Omoda E5 joined the party with a RM27,000 cut to make RM119,818 for 2024 units. This became a RM98,818 clearance sale in May. The electric Omoda was launched in March 2024 for RM146,800.
More recently, smaller players like the GAC Aion Y Plus and Leapmotor C10 also had to drop their RRPs just to remain in the frame. The latter, which has the biggest body, gets improved specs and is now priced at RM125,000 – it was launched in October 2024 for RM159,000, or RM149,000 with an early bird discount. There are also 2024 units going for RM110k.
So, good for new buyers, but bad for old ones – what’s your take on this? Comment below.
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Well, it’s a free market. If a brand chose to discount on their vehicles, I opined most buyers would welcome it. Let’s not dictate the prices of vehicles. Buyers must make informed decisions regarding their purchases. If they choose to be “ïn” and drive the latest models, I am sure they have factored in a price drop in the future. I have been holding off on purchasing the Toyota Corolla Cross, expecting a price drop and/or the addition of better features in response to Chinese competition. It’s showing results. The discounts have gone up lately.
it is only bad for those early takers, but good for late buyers. The initial price was high anyway compare to wat selling in China. For me, more discount the better !
Tis fella talking nonsense, who dun want to buy cheaper car. Our car price aldy exorbit n he talking crap, thought like changing clothes. Still dare to talk abt proton which hav no rs compare to perodua.
The only one who’d complain lower price is bad are the sellers. Such opinion from a party with vested interest isn’t worth the oxygen used to say it.
No,
Axia get AEB while BMW 2 series not yet.
Myvi get Autopilot Cruise earlier than several continental cars on sales too.
Technology doesn’t trigger price war.
A failure of brand has nothing do with tech war.
What is price war here? It’s just marketing and product outdated.
Good for us comsumers, with all the Madani’s increase in cost of living wt the SST….RON95…finally something going down. Great for consumer!
It’s just like the pricing strategy in mobile phone/PC, if you want to get the first hand technology experience, pay more. If you don’t mind to wait, in another 6 – 12 months time, there will be new model to replace. Product cycle is getting shorter and shorter, so same to automobile.
well said
Nah…go ahead with the price war. Why put power on the seller/manufacturer? Power should be with the consumer.
How is it bad in any way for the customers? Used car conman everyday give joker value when want resell the car don’t see you all do anything
Expect more comments from mainland little pinks that resale value is not important.
Well guess that is how the industry here works to protect AP & Vendors cronies at all cost to make maximum money from the beginning especially with swapping of lower quality products for all Malaysian to enjoy.
Guess there will be no changes to this in the foreseeable manner especially with the investment guy says APs are here to stay and good for EV safety (when NetaV score 0 NCAP safety).
I think the only thing not good is the companies now make lesser monies compare to last time.
Especially crappy overrated and overpriced japanese cars
This fella is advocating for price-fixing is what he wants… sheesh just shut up and let the free market dictate pricing.
We don’t really sell second-hand HP to cover for new phone deposit. I would love if the car market were oso like dat, but alas…
Usually when the prices go up, they say it’s market forces, no action should be taken. Now due to overcrowded market, supply outstripping demand and prices drop, suddenly the same people are unhappy and say should curtail the market forces. WTH.
In the end, the gment is still the biggest profiteer of the auto market.
Exactly
blah, car price drop due to tax issue eh
we pay tax more than the car price, so wake up guys
Haha I am happy hear this you sell junk sure got price war one. You got see MB, BMW Audi undercut each other or not. Offer peanut sure got monkey come.
First of all, the reason there can be such big discounts is because the consumers are getting ripped off in the first place.
Now the price war is just settings things right the way any product should have been priced.
Not overpriced.
Yeah current car owners would lose due to our cars now will have lower value in the long run.
I would rather sell my current car at a lower price and buy a new better one at a lower price.