NAP gets thumbs-up from used-car dealers
Aidila RazakPublished: Jan 21, 2014 12:58 PM | Updated: Jan 21, 2014 4:13 PM
Used car dealers have given the thumbs up for the National Automotive Policy 2014-2020, saying a gradual reduction in car prices will benefit both dealers and consumers.
They say a gradual reduction in car prices will benefit dealers and consumers.
Used car dealers have given the thumbs up for the National Automotive Policy 2014-2020, saying a gradual reduction in car prices will benefit both dealers and consumers.
Federation of Motor and Credit Company Associations of Malaysia president Tony Khor said while demand and supply determines used car prices, the main driver is the price of new cars, raising concerns within the industry when there was speculation of price cuts.
"Fortunately, the reduction in prices by 30 percent by 2018 will happen gradually, so the impact on used car dealers will not be so bad. There will be some difficulty, but it will not be so tough over time.
"Had it been overnight, secondhand car dealers who still have an estimated 100,000 in inventory today will have to close shop and file for bankruptcy," Khor said.
He was commenting on the NAP 2014-2020, launched yesterday, which the government claims will create a framework to bring car prices down by 30 percent, without taking into account inflation by 2018.
This was by encouraging localisation through opening manufacturing licences for all carmakers to build and assemble energy-efficient cars locally, regardless of size, equity level and investment level.
Manufacturers who build more of their cars locally will also get tax incentives via the industrial linkage programme, which includes lower excise duties.
Cheaper cars good for all
Khor said that in the long run, cheaper cars will benefit the used car industry because "if cars are cheaper, we (dealers) can sell more".
Furthe, localisation of the automotive manufacturing industry, he added, would also make car parts more readily available and possibly cheaper for the more popular cars.
"For example, the Nissan Almera is very popular and if it is assembled and manufactured locally, the parts will be more readily available and cheaper," Khor said.
This will also encourage secondhand car buyers as they will not have to worry about expensive car parts if they have to make repairs.
Khor lauded the government for making roadworthiness testing and scrapping voluntary, which he said would have detrimentally affected the car workshops and the used car industry.
He also applauded the decision to allow more testing facilities instead of just one today, which will make it more convenient for used car buyers and drivers.
However, Khor declined to comment when asked about the decision to relook the deadline for Approved Permits, saying FMCCAM represents both AP holders and non-AP holders.
"I cannot comment as this is a sensitive issue," he said.
Federation of Motor and Credit Company Associations of Malaysia president Tony Khor said while demand and supply determines used car prices, the main driver is the price of new cars, raising concerns within the industry when there was speculation of price cuts.
"Fortunately, the reduction in prices by 30 percent by 2018 will happen gradually, so the impact on used car dealers will not be so bad. There will be some difficulty, but it will not be so tough over time.
"Had it been overnight, secondhand car dealers who still have an estimated 100,000 in inventory today will have to close shop and file for bankruptcy," Khor said.He was commenting on the NAP 2014-2020, launched yesterday, which the government claims will create a framework to bring car prices down by 30 percent, without taking into account inflation by 2018.
This was by encouraging localisation through opening manufacturing licences for all carmakers to build and assemble energy-efficient cars locally, regardless of size, equity level and investment level.
Manufacturers who build more of their cars locally will also get tax incentives via the industrial linkage programme, which includes lower excise duties.
Cheaper cars good for all
Khor said that in the long run, cheaper cars will benefit the used car industry because "if cars are cheaper, we (dealers) can sell more".
Furthe, localisation of the automotive manufacturing industry, he added, would also make car parts more readily available and possibly cheaper for the more popular cars.
"For example, the Nissan Almera is very popular and if it is assembled and manufactured locally, the parts will be more readily available and cheaper," Khor said.
This will also encourage secondhand car buyers as they will not have to worry about expensive car parts if they have to make repairs.
Khor lauded the government for making roadworthiness testing and scrapping voluntary, which he said would have detrimentally affected the car workshops and the used car industry.
He also applauded the decision to allow more testing facilities instead of just one today, which will make it more convenient for used car buyers and drivers.
However, Khor declined to comment when asked about the decision to relook the deadline for Approved Permits, saying FMCCAM represents both AP holders and non-AP holders.
"I cannot comment as this is a sensitive issue," he said.
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