Inflation is going on in most locations throughout the globe now, on account of varied causes, and Malaysia isn’t spared, even when the speed is comparatively subdued right here. But late final yr, speak about prices of car spare parts shooting up surfaced, and hefty figures of as much as 60% was quoted.
At Perodua’s 2022 outlook media convention as we speak, Perodua president and CEO Datuk Zainal Abidin Ahmad acknowledged that raw material prices have certainly elevated by a good bit final yr, and the state of affairs has not abated.
“The challenge for this year is the increase in raw material price. The price of steel is forecasted to increase by more than 20%. In the third and fourth quarter last year we saw an increase of beyond 20%, and for the first quarter this year, we also expect an additional 10% increase on top of what we saw last year,” he revealed.
Despite this, the Malaysian auto market chief doesn’t plan to cross on the higher raw material prices to prospects. “However, for Perodua we do not intend to transfer this increase to the customer. As of now, based on our current plan, our current benchmarking and competitiveness study, we should be able to absorb any (material price) increase, as of now,” Zainal declared.
As if that’s not ok, we should always brace ourselves for a shock – decrease spare parts costs. The P2 chief revealed that the carmaker is working arduous to keep up and even cut back the price of parts. You learn that proper: a discount, which is a shock in a world the place costs are sticky-down.
“Other persons are speaking bout spare parts price increase. For this yr, it’s good if we are able to retain or cut back our spare parts costs. This is the place we should always give the chance for Malaysians to service their cars after two years of lockdown. We hope that the Malaysian buyer will return to the authorised service centres.
“We are now studying if we can – it’s a tough and difficult challenge – but we’ll announce later if we can give more competitive spare parts pricing to our customers,” Zainal stated.
As for automotive costs, Malaysian automotive consumers are nonetheless having fun with gross sales tax exemption, which will probably be in place until June 30, 2022. Perodua models are between 3% to 6% cheaper because of the 100% SST exemption for domestically assembled cars. Asked on the potential of one other extension by the federal government past the mid-year deadline (it began in June 2020 and has been extended three times since), Zainal referred to as it a 50-50 state of affairs. An extension would profit the corporate and its prospects as Perodua has a excessive variety of excellent bookings.
