For those who bought foreign car like Nissan Sentra, Toyota Vios, Honda City, Toyota Altis, Honda Civic etc, they would pay higher car prices due to our high import duties on foreign cars. Besides that, they would also pay for higher petrol price sooner (Start from 1st May 2010). Do you think this is ridiculous?
Another situation: Let say the car price increased due to the raw materials cost increased, or it costs more to ship the parts to Malaysia for assembling but it still maintains the car price, means there will have lower quality control. Do you feel satisfy with that? I feel that most of the car company will make use of this tactic, just end user do not know!
Buying cars is probably the heaviest expense for middle class people over the long term. Most families will buy a house only once but a car may be changed every 8-10 years. This will end up buying at least 2 cars.
Unfortunately, our government has become addicted to impose high taxes on foreign cars and so lifting protection for Proton. Sadly, I don’t see any political can try to start this process to bring our car prices down to world market level. Malaysians will continue to pay unreasonably prices for cars in the future.
Why Malaysia Cars So Expensive?
For me, Malaysia car price is the highest in the world and it does not make any sense. Let’s take few example car prices from our neighbour Indonesia. The Toyota Altis sells in Indonesia for about RM46k. The same car sells in Malaysia for around RM 112k. And, the Honda Jazz sells in Indonesia is about RM36k but here is RM108k. See, we are triple more expensive than Indonesia.
In a competitive market, suppliers tend to increase productivity, reduce cost to maintain or improve margin profit. However, in a controlled market like Malaysia, consumers are always at the losing end. I do not know why!
If you compare with GDP per average income, I can see that a large proportion of Malaysian income is spent on car installment. The government just knows to protect car manufacturers’ profit, but who is to protect consumers’ pocket?
The ridiculous car price in Malaysia is an issue that is just beginning to get more attention. It is going to become a really big issue in the near future!