Hike in car prices is not confirmed yet, says MAI

Kuala Lumpur: A car price hike next year as suggested by carmakers is still not conclusive, as it depends on the performance of the ringgit, said the Malaysia Automotive Institute (MAI).

MAI Chief Executive Officer Madani Sahari said there is still less than three months left before in 2015 and the ringgit could rebound to a better level during the period.

"Things can change. We have seen the ringgit appreciating in the last one week, so it is not impossible for it to achieve a much better level by January," he told reporters after launching the Formula SAE ASEAN 2016 here today.

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Nevertheless, he said for potential buyers in need of a car and have the affordability, now, is the best time to buy one due to the various promotional campaigns by carmakers to boost sales.

Over the last few weeks, car manufacturers such as UMW Toyota Sdn Bhd and Edaran Tan Chong Motor Sdn Bhd had announced plans to increase car prices next year following the weakening of the ringgit. The prices of Toyota and Lexus vehicles will go up from 4% to 16% and the price increase will only be effective from January 2016.

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To this hike, UMWT president Datuk Ismet Suki said, “Since the beginning of this year, the fluctuation of the ringgit has impacted our business as some of our parts and components are imported, resulting in an increase in overall cost of production. We have implemented cost-efficiency measures and reviewed our operations across the supply chain to mitigate the weaker ringgit.”

While Edaran Tan Chong Motor (ETCM) has stated that it is considering price increases on its range of Nissan models in Malaysia next year, if the value of the ringgit continues to fall against major currencies.

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The company said in a press release that its business has been affected by the unfavourable foreign exchange and has implemented several cost rationalisation and efficiency optimisation measures to minimise the impact, but admitted that some of the cost may still have to be passed on to its customers.

As Madani said in his statement, it is true. Malaysians have the chance to take advantage of this confusion in price hike to purchase new cars. The market will become more competitive in next 3 months of the year and manufacturers will surely plan to lure buyers interest to their products in the best possible way.

Read Also: Nissan vehicles might face a price hike in Malaysia in 2016

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Read Also: Prices of Toyota, Lexus up by 4% to 16% from January 2016