KUALA LUMPUR (June 10): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) will reduce its model prices (on-the-road excluding insurance) by between 3% and 6% via cash rebates until June 14 and will incorporate the new prices throughout the tax reduction period as recently announced by the government.

In a statement, Perodua president and chief executive officer Datuk Zainal Abidin Ahmad said despite the tax reduction becoming effective June 15, Perodua will offer cash rebates of between 3% and 6% for the purchases of its vehicles beginning today.

"We want everyone to take this opportunity to own a Perodua without worrying about being left out," he said.

In his Economic Recovery Plan address last Friday, Prime Minister Tan Sri Muhyiddin Yassin announced various measures and incentives to stimulate the economy amidst the ongoing Covid-19 crisis that has gripped the nation.

Among the incentives to assist the automotive industry are a 100% sales tax exemption on new completely knocked-down (CKD) vehicles and a 50% exemption for completely built-up vehicles until the end of the year.

"Perodua is in full support of the government's move to fully exempt sales tax for the purchase of CKD cars until the end of the year to shore up the domestic economy," said Zainal.

Perodua's current model range comprises the Myvi, Axia, Bezza, Aruz and Alza.

Zainal said the Malaysian public is spending more cautiously due to Covid-19 and the Movement Control Order, although personal vehicles are still very much needed.

"This move to fully exempt CKD cars from sales tax is a confidence boost for the automotive industry — not just for car buyers but the entire ecosystem of manufacturers, suppliers and dealers.

"Along with low financing rates at this difficult time, we are cautiously optimistic that this will spur new car sales," he said.

Zainal said Perodua had sold 52,920 vehicles as of the first five months of 2020, giving it a 41% market share against an estimated year-to-date total industry volume of 129,401 units.

He said all current Perodua models have over 90% local content, and last year the carmaker purchased RM5.4 billion worth of components from Malaysian suppliers.

"As Malaysia's biggest carmaker by volume, we reiterate our commitment to the government to contribute wherever and whenever we can to ensure the industry can get through this difficult time," said Zainal.