Prices of CKD models won’t increase this year says MAA

KUALA LUMPUR: Putting an end to the rumours, the Malaysian Automotive Association (MAA) has announced that the OTR (on-the-road) prices of locally-assembled CKD (completely knocked-down) vehicles won’t increase for a year until December 31, 2020. The president of MAA, Datuk Aishah Ahmad said that the price difference in OTR prices for some models will be absorbed by the government.

She mentioned in the statement, “This is for models affected by the transparent open market valuation (OMV) calculation method, as outlined in the Customs Gazette P.U.A (402) dated Dec 31, 2019. Any increase in the OTR prices (for the models) would be fully absorbed or exempted by the MoF for this year and the difference in duties for past years will also be exempted, effective immediately."

Further, the auto companies have been asked to submit the OMV for the affected vehicles at the earliest to the Royal Malaysian Customs Department (RMCD). After doing all the calculations, the government will be exempting RM 33,000 per unit as a part of the exercise.

For unawares, OMV is determined by considering a set of components involved, including cost of manufacturing, components, assembly and administration charges and CKD pack. It is the final market price of a CKD vehicle excluding excise duties.

Besides, the president also mentioned that a revised National Automotive Policy (NAP) will come out in the first quarter of the ongoing year. “The NAP 2020 is more or less approved. I was told that the Cabinet has endorsed it and it will be announced in the first quarter of 2020 by the prime minister. The Ministry of International Trade and Industry is waiting for the prime minister’s date and time to announce it, so it will be anytime soon,” she added.

Meanwhile, she said that the prices would see a varying increase from 0 to 20 per cent based on the CKD model starting next year. The increase would, however, be gradual.

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