The Malaysian government last Friday announced an automotive stimulus package to re-ignite the Malaysian auto industry after the recent lockdown due to Covid-19. This new ‘hand-out’ is a 10 per cent sales tax removal on local assembled cars like all Perodua cars and a 5 per cent reduction for fully imported cars which does not apply to Perodua cars.
This will reduce car prices from June this year. Now, there will be some confusion of the calculation of the reduction as the given amount may be 10 percent but the effective price reduction is between 3-6 percent and this is due to calculation based on the vehicles cost and not its nett selling price.
PRESS RELEASE: Perodua will reduce its model prices (on-the-road excluding insurance) by between 3 per cent and 6 per cent via cash rebates until 14 June 2020 and will incorporate the new prices throughout the tax reduction period as recently announced by the Prime Minister.
“Despite the reduce tax only becoming effective 15 June 2020, Perodua will offer cash rebates between 3 per cent and 6 per cent for the purchase of our vehicles beginning today,” Perodua President and Chief Executive Officer, Dato’ Zainal Abidin Ahmad said.
“We want everyone to take this opportunity to own a Perodua without worrying about being left out. Please visit any Perodua sales outlet and speak to our authorised sales advisors for the total cash rebate amounts and the full price list that will be effective 15 June,” he added.
In his Economic Recovery Plan address on 5 June, Malaysian Prime Minister YAB Tan Sri Muhyiddin Yassin announced various measures and incentives to stimulate the economy amidst the ongoing COVID-19 crisis that has gripped the nation.
Among the incentives to assist the automotive industry are a 100 per cent sales tax exemption on new completely-knocked-down (CKD) vehicles and a 50 per cent exemption for completely-built-up (CBU) vehicles until the end of the year.
“Perodua is in full support of the government’s move to fully exempt sales tax for the purchase of CKD cars until the end of the year to shore up the domestic economy,” said Dato’ Zainal.
Perodua’s current model range comprises the Myvi, Axia, Bezza, Aruz and Alza.
“The Malaysian public are understandably spending more cautiously due to COVID-19 and the Movement Control Order, although personal vehicles are still very much needed in these trying times,” said Dato’ Zainal.
“This move to fully exempt CKD cars from sales tax is a confidence boost for the automotive industry – not just for car buyers but the entire ecosystem of manufacturers, suppliers and dealers. Along with low financing rates at this difficult time, we are cautiously optimistic that this will spur new car sales,” he added.
Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41 per cent market share against an estimated year-to-date total industry volume of 129,401 units.
All current Perodua models have over 90 per cent local content, and last year, the carmaker purchased RM5.4 billion worth of components from Malaysian suppliers.
“As Malaysia’s biggest carmaker by volume, we reiterate our commitment to the government to contribute wherever and whenever we can to ensure the industry can get through this difficult time,” said Dato’ Zainal.
