UMW Toyota to hike prices by 4-16%
06 Oct 2015 | 71 Views
The Ringgit has never fallen so hard since the 1998 Asian Financial Crisis, having reached its lowest value in 17 years. Losing almost 20% of its value in a few months has prompted several car manufacturers to raise the prices in their dealerships. Hyundai Malaysia has recently, and very quietly, raised the prices of three of its models; BMW Group Malaysia has also hinted that the weak Ringgit could cause a price hike for its products. Following suit is Toyota, whom has announced that UMW would be raising prices of Toyota and Lexus vehicles by 4-16% starting from January of 2016.
According to its spokesperson, UMW Toyota has “implemented strategic moves to protect the interest of its customers in the midst of the fluctuation of ringgit, and absorbed additional cost to a certain extent over the past months.” Given how the Ringgit has slid by 20% within the year, everyone expects a price hike for imported goods. However, people within the industry are noting how the announcement is so well-timed, helping them to clear existing stock with a year-end sale by following it with a price hike.
Photo by The Star Online
“Since the beginning of this year, the fluctuation of the Ringgit has impacted our business as some of our parts and components are imported, resulting in an increase in overall cost of production. We have implemented cost-efficiency measures and reviewed our operations across the supply chain to mitigate the weaker Ringgit.”
“We are facing challenging times but UMW Toyota is confident we can ride out the storm. We have strong fundamentals and a proven track record. I believe customers will continue to choose us and our vehicles as we deliver quality products and services that complement their lifestyles.”
UMW is confident in its products as it is very well positioned in the Malaysian market. Malaysians pay a lot more for imported cars compared to our neighboring countries, because the country’s National Automotive Policy follows something called the infant industry argument. It is one form of protectionism policy that involves reducing the viability of foreign products to support the local, infant industry. The same policies are in place as the nation celebrates Proton’s 30th anniversary in 2015.
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