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Perodua maintains competitive edge, with or without GST

New Myvi priced from RM41,500

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WHETHER the impending goods and services tax (GST) will bring car prices down or not is still uncertain.

For Perodua, it will continue leveraging on its affordable models to sustain its competitive edge as a low-cost and quality national car manufacturer.

“With or without GST, we have always set the price low for our cars. At the end of the day, we need to come up with products that are competitive,” Perodua president and chief executive Datuk Aminar Rashid said.

Speaking during the launch of the new Perodua Myvi, Aminar said that the company’s low-priced product portfolio has been a strategy to maintain its competitiveness in a crowded market.

“We need to offer products and services that exceed customers’ expectation. There are many different car models and variants in the market. We have no choice but to remain competitive without compromising on quality,” he said.

Perodua president and chief executive Datuk Aminar Rashid.

Perodua president and chief executive Datuk Aminar Rashid

Last year, Perodua saw a slight dip by 0.3 per cent in its vehicle sales. In 2014, it sold about 195,600 units of its vehicles compared with 196,100 units sold in 2013.

The decrease in sales last year was partially attributed to the recent flood in the East Coast of Malaysia, which affected its operations in the area.

However, the company is confident that it will perform better this year, backed by sales of the new Perodua Axia, Malaysia’s first energy-efficient vehicle.

“To date, over 70,000 units of the Axia have been booked, of which more than 29,000 units have been delivered to our customers”, Aminar told Cars Bikes and Trucks.

Still, the Myvi remains as the company’s top-selling vehicle, with 82,400 units sold in 2014, according to Aminar.

For the rest of the year, Perodua has allocated a capital expenditure of about RM632 million to fund several pipeline projects, including a new 3S (sales, service and spare parts) centre in Melaka and a new engine plant in Negeri Sembilan.

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On the possibility of introducing the Cash For Clunkers rebate system, Aminar said that Perodua is still negotiating with the government on the matter.

“We were approached by the government last year and the discussion is ongoing. There are issues that need to be addressed first such as who will bear the cost, the age limit of vehicles and the methods of scrapping,” he said.

“Principally, it is a good programme and is workable. The authorities will decide when the programme should be implemented.”

The Cash For Clunkers scheme is a scrappage programme announced by the government to encourage car owners to trade their old cars for cash.

Malaysia Automotive Institute chief executive Madani Sahari recently announced that should the scheme be introduced, the total industry volume (TIV) this year could rise to more than 750,000 units of vehicles.

On another note, Perodua has introduced the new Myvi, which now comes with enhanced safety features and better aesthetics.

Improvements made to the new hatchback come in the form of front corner sensors, a reverse camera and an anti-snatch hook on the front passenger seat, among others.

Six colours are now available, including Electric Blue, Cosmic Gold, Ozzy Orange, Mystical Purple, Glittering Silver and Ivory White.

Present in two segments – 1.3-litre and 1.5-litre – the new Perodua Myvi is priced from RM41,500 to RM58,900.

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About Adela Megan Willy

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