Mazda has no current plans to increase prices in Malaysia, Berjaya auto confirms

Kuala Lumpur: Earlier in October it was reported by Berjaya auto that despite the falling ringgit against the dollar, the company will not be increasing the price of its cars in Malaysia. Now the earlier statement is even more certain as Datuk Seri Ben Yeoh, CEO, Bermaz Motor Sdn Bhd. has reiterated that there are no plans of the company to increase prices because of the weakening ringgit.

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Datuk Seri talked to the media at the Institute of Motor Industry (IMI) conference held at Hilton Kuala Lumpur. He told the reporters that the company will continue to bear the expenses on themselves until the ringgit falls to an absorbable state.

The major reason expected behind this decision was fairly cleared by Yeoh himself. He said that Mazda basically deals in Yen for the cars imported from Japan and, fortunately, the conversion rates between Ringgit and Yen have been less volatile in the past months as compared to that of Dollar and Ringgit, which surely proved to be beneficial for the company.

Apart from it a majority of Mazda cars in Malaysia are locally assembled which further reduces the manufacturing cost of the car, even in the times of falling ringgit against dollars.

Datuk Seri Ben Yeoh said, “If you look at the majority of vehicles that we sell, they are basically CKD cars, with only a few models being CBU. For CKD models, Mazda is trying to look at opportunities to reduce cost, for example by increasing our local content, and as we produce more and more cars we all become more efficient, and this efficiency will be reflected in a cost-down structure, which will mitigate the impact of the poor foreign exchange.”

In the case of CBU units, Yeoh told the media that the company will try to offset this with some reduction of its own operation costs so that the consumers will not face any burden of the prices on them.

At the end, Yeoh said that he is positive that the ringgit will be going to strengthen and the company will regain a stable market environment. The has so far performing well and had already sold 12,000 units of Mazda cars by the end of this October. The current market share of Mazda in Malaysia is 2.5% which will surely rise with the upcoming launch of Mazda CX-3 on December 8 priced at RM131K.

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