PM: Market forces will fix car prices
BY MERGAWATI ZULFAKARPUTRAJAYA: The Government is leaving it to the market forces to dictate the prices of cars and Malaysians have been advised to buy cars only if they can afford to do so.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said that when the Government was working out the adjustments in import tax and excise duties for cars, the formula showed there was not going to be any price increase.
Commenting on news reports that prices would increase by up to RM20,000, Abdullah, who is Finance Minister, said there could be two factors.
“One, car traders are not prepared to reduce their profit margin. If they lose a little bit, perhaps the prices will be acceptable.
 |
BIDDING FAREWELL:Abdullah leaving after the dialogue in Putrajaya yesterday.With him are NEAC chairman Datuk Mustapha Mohamad,Special Functions Minister Datuk Seri Dr Mohd Effendi Norwawi (behind Mustapha)and Deputy Prime Minister Datuk Seri Najib Tun Razak. |
“The euro is going up, the ringgit exchange rate is not favourable to us and you have to pay more. The yen is also going up,” he said after a dialogue with National Economic Action Council members, corporate leaders, professionals and academicians at the Marriott Putrajaya here yesterday.
A recent report said Proton cars are expected to cost between RM3,000 and RM5,000 more, while prices of completely built up and completely knocked down cars will increase much higher.
Asked about the Proton car price increase, Abdullah said he was confident the national car company could produce quality cars at a lower cost, especially with its new and sophisticated plant in Tanjung Malim.
Abdullah said the prices of Proton cars were reasonable but stressed the need for the cars to be of better quality to attract more buyers.
DANNY YAP reports that most car distributors expect a revaluation of their car prices within the next few days.
According to a recent news report, Edaran Tan Chong Motor Sdn Bhd and United Straits Fuso Sdn Bhd, which distribute Nissan and Mitsubishi respectively, have already raised their car prices by between 5% and 16%.
Tan Chong sales adviser Kelvin Soh said it was still taking orders for Nissan cars at the old price while stocks last.
“We expect the prices of our new cars to be revised upwards by at least RM4,000 and this can happen anytime this week,” he said.
Naza Group of companies managing director Tan Sri S.M. Nasimuddin S.M. Amin also confirmed Naza Ria and Kia prices would be revised upwards soon.
News Poll
- Court ruling takes bite out of local council summonses
- Chin Peng apologises for death of innocents
- Girl and stepmum held over bid to kill first wife
- Biggest karaoke session a blast
- New evidence on MCA snoop squad case arrives at doorstep
- Teoh's second autopsy completed 3.15pm
- Victim’s dad nabs kidnapper
- Teoh’s body exhumed for second autopsy today
- Foreigner falls to her death from condominium
- Malaysians must get regular dental checks
- Court ruling takes bite out of local council summonses
- Chin Peng apologises for death of innocents
- Malaysians must get regular dental checks
- No licence to try offenders
- Big impact in ‘small’ man’s win
- New evidence on MCA snoop squad case arrives at doorstep
- Stop blanket approval for outsourcing, says union
- Teoh's second autopsy completed 3.15pm
- Weapons drawn for new battle
- Johor set to be a medical hub
RSS
