Nissan vehicles might face a price hike in Malaysia in 2016

Kuala Lumpur: Edaran Tan Chong Motor Sdn Bhd (ETCM) has announced that it may consider increase in the prices of its Nissan models starting January 2016, if the value of ringgit continues to decline against all major currencies.

The company released a statement at a press release saying that, despite implementing numerous cost rationalisation and efficiency optimisation exercises to mitigate the ringgit impact on ETCM’s business, some cost might have to be passed to consumers. Recently many automaker has announced the same, as a result of the unfavourable foreign exchange rates.

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ETCM said, “As a result, ETCM (wholly-owned by Tan Chong Motor Holdings Bhd) may have to consider raising the prices of its Nissan models in 2016.” ETCM executive director Datuk Dr Ang Bon Beng said,” Despite the adversities, the company remained committed to providing its customers with quality, value-added products and the highest level of customer services.”

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“The company will continue to seek and review opportunities for more strategic operational effectiveness and efficiencies within the business and with our partners, in order to ensure that the current prices of Nissan vehicles remain unchanged this year,” he added.

As reported by The Edge Financial Daily, Malaysian Auto market is a `catch 22' situation. ETCM’s dilemma echoes the widespread sentiment among all the automobile makers in the country.

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Reports suggest that the falling ringgit is eroding carmakers’ profit margins, with some expected to lose 6% of their net profits. This loss is forcing these automakers to share it with the consumers. Earlier this month two other major Japanese Brands UMW Toyota and Honda Malaysia also announced a price hike of their vehicles starting January 2016.

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