Perodua Will Reduce Prices With Rebates Pending Sales Tax Exemption Period

Perodua has announced that it will reduce the prices of its vehicle range while pending the implementation of the sales tax exemption period. Between now and 14 June 2020, Perodua will reduce its prices (on-the-road without insurance) by between 3% and 6% via cash rebates, hence there is no need for anyone to wait until 15 June to purchase a new vehicle. Perodua’s current model range comprises the Myvi, Axia, Bezza, Aruz and Alza.

“Despite the tax reduction only becoming effective 15 June 2020, Perodua will offer cash rebates between 3% and 6% for the purchase of our vehicles beginning today,” Perodua President and Chief Executive Officer, Dato’ Zainal Abidin Ahmad said. The current sales tax of 10% is applied on the final invoiced amount of the sale.

“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.

Last week, the Prime Minister of Malaysia, YAB Tan Sri Muhyiddin Yassin, announced various measures and incentives to stimulate the economy in his Economic Recovery Plan address. These initiatives are meant to spur growth in the local economy as the country comes out of the fallout of the pandemic.

Among the incentives to assist the automotive industry are a 100% sales tax exemption on new completely-knocked-down (CKD) vehicles and a 50% exemption for completely-built-up (CBU) vehicles until the end of the year.

Besides encouraging consumers, the sales tax exemption on new cars is also aimed at boosting the automotive industry ecosystem as increased activity will benefit everyone from the manufacturers to the suppliers to the dealerships.

“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. “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. Along with low financing rates at this difficult time, we are cautiously optimistic that this will spur new car sales,” he added.

In the first five months of 2020, Perodua recorded sales of 52,920 vehicles. This represents an approximate 41% share of the local market, against an estimated year-to-date total industry volume of 129,401 units.

Currently, all Perodua models contain over 90% local content. In 2019, the company had purchased about 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.