Mercedes-Benz And Toyota Passenger Cars Now More Affordable With the NAP

Kuala Lumpur, 27 March 2006 – Following the announncement of the NAP by the government, Daimler Chrysler has announced a significant reduction in the prices of its CKD models with immediate effect. Price reductions are for the C-Class, the E-Class and the S-Class, ranging from 6 to 10 percent. The following is an extract from a statement issued by Mr. Frank Steinleitner, President and CEO of DaimlerChrysler Malaysia, “DaimlerChrysler Malaysia welcomes the announcement of the new duty structure, which greatly benefits the company’s production of CKD (Complete Knocked-Down) vehicles. With this cost saving, there will be significant growth in the CKD production, thus bringing about economic benefit to Malaysia. Having invested heavily in the production plant in Pekan, DaimlerChrysler Malaysia has demonstrated long-term commitment to Malaysia and will fully pass on the entire duty savings to its customers.

The company will be reducing prices on all its CKD models with immediate effect. The customers can look forward to savings of between 6.5% to 10%. For example, the entry-level CKD Mercedes-Benz C180K model previously retailed at RM255,800 but with the duty savings, customers can expect to purchase the luxury make for RM233,888. The model with the biggest price reduction is the Mercedes-Benz E240K, which will now be retailed at RM388,000.

UMW Toyota Motor Sdn Bhd, the importers and assemblers of the Toyota range of vehicles, also view the NAP as something positive for the industry, and their official statement says, “UMW Toyota Motor welcomes the National Automotive Policy announced by the Government as it will encourage reinvestments and spur growth of the automotive industry while ensuring local assemblers and manufacturers to be export-oriented. It has removed certain ambiguities for us to forge ahead in an open and competitive environment.

We would like to announce that as a result of the announced new duty structure, the prices of passenger cars will be lower. Unfortunately, prices of MPVs will go up. We are working on the details of the vehicle prices in accordance with the new import and excise duties imposed.

The company will announce the final price list of Toyota vehicles over the next few days. We would like to assure UMW Toyota Motor customers and the general public that they would be kept informed on any new developments.”

We are getting mixed reactions from many quarters, but it appears that those who have invested in local assembly are going to benefit from lower prices, and therefore a bigger share of the pie.

Generally, the NAP favours companies with local production facilities, and rightly so. Imported cars are expected to go up; the numbers are being crunched, and we should expect to see some announcements soon. Keep your eyes on this site.