KUALA LUMPUR – Bermaz Motor Sdn Bhd, the distributor of Mazda vehicles in Malaysia, has no plan to increase selling priceS, despite the weakening ringgit.
Chief executive officer Datuk Seri Ben Yeoh Choon San said this is due to the stable exchange rate between the ringgit and yen, as well as the structure of its car offerings, which are mostly completely knocked-down (CKD) units.
“We have been purchasing our cars in the yen for the last couple of years and the majority of vehicles we sell today, are basically CKD,” he told reporters on the sidelines of the Institute of the Motor Industry (IMI) Conference here today.
He was a panelist at the event.
Yeoh said Bermaz partner and Japanese automotive giant, Mazda Motor Corporation, is looking for opportunities to increase the local content in CKD cars which could lower in turn, the cost.
“The company is producing more cars to increase efficiency and in turn reduce costS. This will help mitigate any rise in the exchange rate,” he added.
On the completely built-up (CBU) units, Yeoh said Bermaz would mitigate the rising cost through the reduction in operating costs.
“Having said this, it will be as far as we can hold prices and if the ringgit weakens further to the extent that itâ€™s no longer viable for us to sell cars at the current rate, then, we have to increase prices,” he added.
On new entrants, he said Bermaz will be launching a new sports utility vehicle, the CX3 this year, and a few more models in 2016.
He said the new launches would further strengthen the company’s market share which is currently at between two per cent-2.5 per cent.
As of October, Bermaz had sold 12,000 vehicles.
Meanwhile, on the Trans-Pacific Partnership (TPP), Yeoh said the free trade agreement is expected to have an indirect impact on components supply due to the free markets access to overseas part suppliers. – BERNAMA