KUALA LUMPUR: Prices of most car models, ranging from entry level to premium marques, have dropped with the implementation of the goods and services tax (GST) which came into force yesterday.

Starting from mass-market offerings, national cars Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) have seen the prices of all their models reduced by up to 3.25% and 1.6%, respectively.

In a statement yesterday, Perodua said the price reduction for its models ranged from 0.1% to 1.6%, depending on individual models.

Its president and chief executive officer (CEO) Datuk Aminar Rashid Salleh said the firm has always been supportive of the government’s intention and customers’ expectation in terms of providing affordability and value.

However, Perodua said it will maintain the prices of its spare parts as it absorbs additional costs incurred due to the depreciation of the ringgit against the US dollar.

For Proton, the reduction in prices ranges from 0.89% to 3.25%. The biggest drop in price is on its entry-level Iriz, with the price of the Iriz 1.3 standard CVT (solid colour) falling by RM1,475.23 or 3.25% to RM43,974.92.

Meanwhile, mid-market players dealing in Toyota, Honda and Nissan vehicles have also announced reduction in prices — notably for their completely-knocked-down models — by up to 2%. An exception is Toyota’s entry-level Vios, which saw its price go up slightly.

Toyota, Honda and Nissan are represented here by UMW Toyota Motor Sdn Bhd, Honda Malaysia Sdn Bhd and Edaran Tan Chong Motor Sdn Bhd, respectively.

In Honda Malaysia’s case, apart from lowering car prices, it also announced that the prices of its spare parts will be reduced by an average of 3.7% for all models.

“The GST would be added to the labour charge. However, due to the reduction of the spare-part prices, we estimate that the total maintenance cost will be reduced by 2% to 4%, depending on the model,” said its managing director and CEO Yoichiro Ueno in a statement.

In the premium market, Toyota’s sister brand Lexus will see its prices reduced by 0.45% to 2.04%, while DRB-Hicom Bhd’s unit Euromobil Sdn Bhd announced yesterday that the prices of all Audi models — 

except for the A4 1.8 TFSI — will see a reduction of up to 4.42%.

Meanwhile, Mercedes-Benz Malaysia Sdn Bhd also said the prices of its models will drop by as much as RM10,000 from the pre-GST prices. The biggest price drop is seen on the new E300 Bluetec Hybrid model, which has fallen by RM10,000, while the popular A200 model is reduced by RM2,000.

“We are happy to announce that the prices of our cars have been lowered following the implementation of the GST,” said Mark Raine, vice-president of passenger cars (sales and marketing) of Mercedes-Benz Malaysia.

Nevertheless, according to motoring website Paultan.org, Volkswagen Group Malaysia Sdn Bhd said it would maintain the nett selling prices of all models and variants inclusive of the GST, whereas BMW Malaysia Sdn Bhd is also maintaining its status quo for the time being.

This article first appeared in The Edge Financial Daily, on April 2, 2015.