Thursday, April 25, 2013
Import Duty Cuts – Is it Really a Big Deal?..
- W
Big news for the Malaysian automotive landscape today, import duty imposed on new vehicles from Japan and Australia is expected to be reduced this year, with further reductions every year until it is completely abolished in 2016.
Our question is, will this reduction really bring a big impact for us drivers for the time being?
Based on the figures given by Ministry of International Trade and Industry (MITI) in their press conference earlier today, the duty will be reduced from 18.2 per cent in 2012 to 13.6 per cent this year.
This move may make these vehicles cheaper – by our calculations with the Lexus IS250 as an example, the price will go down by slightly less than RM11,000 (if calculated without including insurance), but this isn't really a big chunk for those who would normally buy a Lexus.
We also did calculations for the Mazda CX-5, which is manufactured in Japan, and we found that you will save about RM6,000 with the tax reduction according to our calculations – but is this really a big deal for consumers?
In today's New Straits Times, it was stated that industry observers said any cost saving for car buyers could be minimal over the short term, as import duty was not the biggest item in the country's automotive tax structure.
This is true, as the biggest item in the tax structure is the excise duty, which ranges from 60 per cent to 105 per cent, and another tax, the sales tax, is fixed at 10 per cent across the board.
So with these other taxes still in place, will the expected reduction really affect the consumers?
If you consider the rebates given by several automotive companies for purchase of their cars, especially at the end of the year, the savings after rebate is probably only slightly more than the amount saved with the tax reduction.
We also wonder if these companies will still offer their rebates if the tax reduction is introduced or if it will be abolished altogether in the future, as they may use it as an excuse to not further reduce the prices.
However, several popular models are exempted from this tax reduction as they are locally produced in Malaysia or other Southeast Asian countries, including the Toyota Camry, Nissan Almera, Honda Civic, and many others.
Car buyers can still expect to pay the full price for CKD models, so forget those savings for the more popular Japanese and Australian cars.
Reconditioned cars from those two countries are also expected to be unaffected by this tax reduction, so in the end, consumers are still forced to pay the full price plus taxes for many models.
On this note, we also wonder what cars exactly do we get from Australian car manufacturers?
Also, after getting the figures from the press conference by the MITI earlier today, we found that these tax reductions are really nothing new.
Ever since the establishment of the Malaysia-Japan Economic Partnership Agreement (MJEPA) in July 2006 under the Japan Free Trade Agreement, the duty has been gradually decreasing every year, starting at 45.5 per cent in 2006, making this the 8th year of decrement, culminating in complete abolishment in 2016.
Which begs the question – so what's the news?
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KLIMS 13 – Major brands coming out in full force, plenty of local launches and previews planned
The year 2013 has been a crazy one so far in terms of motor shows. We’ve had the customary season opening Detroit show, followed by Geneva and New York, plus shows in Bangkok, Seoul and the ongoingAuto Shanghai 2013. We’ve provided exclusive live coverage for the above-mentioned three Asian shows, which we hope you’ve enjoyed.
In the midst of all this action, it’s easy to forget that Malaysia is set to have its own motor show later this year after a three-year hiatus. Officially announced in January, the Kuala Lumpur International Motor Show 2013 (KLIMS 13) will be held from November 15-24 at usual location Putra World Trade Centre (PWTC), KL. The theme for the show is “Efficiency n Motion”.
“The automotive industry players are positioning themselves to crystallise their strategic plans following the result of the general election and in anticipation of the new National Automotive Policy (NAP) announcement. The automotive landscape is also shifting into higher gear in the EEV or energy-efficient vehicles market,” said Datuk Aishah Ahmad, President of the Malaysian Automotive Association (MAA).
Major brands have signed up for KLIMS 13, and among them are Chevrolet, Ford, Hyundai, Infiniti, Lexus, Nissan, Peugeot, Proton, Toyota and Subaru. Needless to say, we can expect plenty of local launches of new models, as well as a few concepts to wow the crowd.
Ford is expected to unveil a new powertrain and “a class-leading vehicle” at KLIMS 13. David Westerman, Ford’s regional manager said: “Ford’s participation at KLIMS 13 aims to excite and engage visitors with an interactive showcase at the Ford stand, as well as our full line-up of One Ford vehicles in Malaysia with class-leading features, design and smart technologies.”
One can expect a world-class display from Peugeot. “We are pleased to be participating in the most anticipated motor show of the year in Malaysia. Peugeot is often in the limelight at international motor shows and Peugeot’s display at KLIMS 13 will be no different,” said Datuk Samson Anand George, COO of Nasim.
Nissan’s theme for its KLIMS 13 stand is The Innovation that Excites. “Nissan will also be showcasing its latest innovation in producing zero emissions while still providing uncompromised driving pleasure as well as upholding ETCM’s commitment towards preserving the environment,” said Datuk David Chen, the new executive director of Edaran Tan Chong Motor.
It’s shaping up to be an exciting show in KL, even for relatively seasoned motor show goers in our team. There may not be any major world debuts or fresh concepts, but there’s this special buzz about covering a motor show on home ground that we enjoy. Stay tuned for more updates on KLIMS 13!
Wednesday, April 24, 2013
Proton Perdana replacement model could use Honda Accord chassis and Petronas engine – reports
Here’s a break from our Auto Shanghai 2013 coverage, and the topic is none other than our national carmaker Proton. The Star reports that Proton is expected to reveal a series of announcements in the next 12 months, including updates on the collaboration with Honda and the launch of new models.
Besides the expected arrival of the P3-22A Preve Hatchback, of which disguised units have been spotted testing frequently by our readers, the report touches on a Perdana replacement model (PRM). The PRM will be a fruit of the Proton-Honda collaboration agreement that came to surface last October.
The daily’s unidentified source said that Proton has plans to use the Honda Accord chassis as the basis for PRM, but the Proton model would look different. There was no mention whether the Accord in question is thenew one recently launched in Thailand, or the outgoing Accord currently on sale here.
“The PRM, though based on the Accord, would still entail cosmetic changes, and the engine could be based on the 2.0 litre Petronas engines Proton bought last year,” he said.
In December 2012, Proton acquired all of Petronas’ engine technologies as well as the associated technology patents at a cost of RM63 million. The deal encompasses seven engine technologies as well as 117 technology patents.
Back then, Proton chairman Datuk Seri Khamil Jamil was quoted in a Bernama report as saying that the acquisition gives his company immediate ownership of a family of normally-aspirated engines and turbocharged 2.0 litre engines, as well as a 2.2 litre turbocharged version to complement its existing Campro engine line-up. Click here for the full story.
The newspaper’s mystery source adds that Honda’s expansion in Malaysia will need a higher degree of localisation, which in turn will include the stamping of parts, and there are only a few companies in the Malaysia that are capable of doing so. “It is natural for Honda to choose Proton as a partner based on the long working relationship between Honda and DRB-Hicom,” he added.
Before Proton and Honda decided to work together, the national carmaker entered into a MoU with Nissan in March 2011 to conduct feasibility studies on areas of cooperation, including the potential use of Nissan platforms and powertrains. It was also rumoured that the Perdana replacement model will be based on the Nissan Fuga, but that, and the wider Proton-Nissan relationship didn’t work out.
The aborted Fuga-Perdana deal was said to be for high-level government official use only, unlike the earlierLancer-Inspira deal with Mitsubishi. So if there’s truth in the Accord-Perdana speculation, we might or might not be able to buy a “Proton Accodana” with a cheaper price. Time will tell.
we play wit facts broo....not ur whims n fancies..huhu..
.to recap briefly..their achievements in the states they ruled:
Penang: fine..its cleaner,more systematic but all business fronts have now gone to cha yer noon alif n have even provoked religious rights by issuing traffic tickets at mosques on fridays.
Selangor:water,sewage,refuse,p igs,rubbish..all the elements here causing major setbacks to healthy lifestyle..
Kedah:dont really know whats going on up there..
Kelantan:Being Kelantan..no matter how much help financially is coming in from Federal,nothing much is done and god knows what happened to the funds,as it is kafirs funds anyway...so hoo cares..okay..that was at state level..at federal..we re going back wards to put our heads in our backs in the future...soo..lets all wake up NOW!continue the legacy!continue the progress!The name is now..Tuanku Abdul RAHMAN ibni Tuanku Abdul HAMID!
Penang: fine..its cleaner,more systematic but all business fronts have now gone to cha yer noon alif n have even provoked religious rights by issuing traffic tickets at mosques on fridays.
Selangor:water,sewage,refuse,p
Kedah:dont really know whats going on up there..
Kelantan:Being Kelantan..no matter how much help financially is coming in from Federal,nothing much is done and god knows what happened to the funds,as it is kafirs funds anyway...so hoo cares..okay..that was at state level..at federal..we re going back wards to put our heads in our backs in the future...soo..lets all wake up NOW!continue the legacy!continue the progress!The name is now..Tuanku Abdul RAHMAN ibni Tuanku Abdul HAMID!
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