The new excise duty regulations recently imposed by the government have potentially major implications on the prices of completely knocked down (CKD) locally assembled vehicles. It’s a hot topic right now – not least because hikes of as much as 15% are projected – and Perodua has assuaged customers that it will try to minimise the impact of these rules on car prices.
Speaking at a press conference during its 2019 full-year review, president and CEO Datuk Zainal Abidin Ahmad said the national carmaker has complied with all the government’s requirements with regards to this issue, and that it sees no discernible change in prices in the short term.
“We have been following all the requirements given by the government as far as the calculations are concerned. We are still evaluating what’s the impact for us, but rest assured, for the next few months, there will be no impact to the industry and we will not increase our prices.”
Zainal added that because it intends to reduce any price increase that may result from these regulations, it predicts stable sales throughout this period. “At this moment we are trying to minimise the impact and as much as possible we [will avoid] passing the impact to our customers. Based on this understanding and principle, we feel our volume will remain stable with all this.”
On the subject of industry participation, Zainal said Perodua had no part in the drafting of the regulations. “We have very frequent engagements with the government, particularly on items in relation to the development of the local automotive industry. But specifically for excise duties, no, we were not consulted. That’s why we are in discussions with some of the members of MAA to try to evaluate what is the impact of this.”
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