The Malaysian Automotive Association (MAA) has issued a prediction that may cause concern for potential car buyers in the country. Speaking to Berita Harian, association president Aishah Ahmad said that there is a strong possibility that there would be an increase in vehicle prices due to the increased costs borne by manufacturers.
“Rising raw material prices, logistics costs, and the ringgit’s weakening are among the reasons manufacturers may have to increase vehicle prices,” she said. While merely a possibility for now, vehicle manufacturers in Malaysia have yet to decide whether to increase prices or to continue absorbing the rising costs.
On that note, Proton Holdings Bhd deputy CEO Roslan Abdullah told Berita Harian that the local car brand is still trying to absorb costs in order to maintain the price of its vehicles. However, he also noted the company may resort to passing some of the cost increments to customers should the situation further worsens.
Meanwhile, the Malaysian Automotive Association also previously issued a request to the Ministry of Finance for an extension of the sales and service tax (SST) exemption on vehicles for another six months. “If the SST exemption that is expiring at the end of June is not continued, it will worsen the situation and increase vehicle prices if manufacturers decide to increase the price of their products,” Aishah said. The ministry has yet to provide any feedback regarding the association’s appeal.
(Source: Berita Harian)