If the ringgit weakens, the price of a new car may go up, such as raw material costs

The price of new cars in Malaysia is expected to rise due to rising raw material prices after the ringgit weakened, the Malaysian Automotive Association (MAA) said. It added that it would be further exacerbated by the chronic chip shortage problem.

According to MAA president Datuk Ayesha Ahmed, the increased costs that carmakers have had to bear mean that the price of new cars is likely to rise. He did say that manufacturers have not yet decided to raise the price of the car and continue to absorb the extra costs, because Daily news Report

“Rising raw material prices, logistical costs, falling ringgit, etc. will eventually force manufacturers to raise car prices. However, no decision has been made yet, “he said.

He said he hoped the government would respond favorably to the association’s request to increase the current sales tax exemption, which ends on June 30. “If the SST exemption, which expires at the end of June, does not continue, it could worsen the situation and the manufacturers may see a sharp rise in prices if they decide to increase the price of their products,” he told the publication.

Local production is also being disrupted due to the continuous shortage of semiconductor chips. In March, the association said local production and supply would take a long time to return to normal. Car manufacturers are also reporting production problems due to shortage of parts.

Earlier in the day, Honda Malaysia said delays in acquiring parts for the new car were causing inconsistent production output at its factory in Melaka, and that this would affect the supply of cars to customers to exceed the SST deadline.

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