Malaysia's Afta policy seen hitting car sales
Malaysian vehicle sales in 2002 hit the highest level in five years but uncertainties due to the Asean Free Trade Area (Afta) are dampening demand as consumers expect better deals, a trade group said today.
Sales grew 9.7 percent to 434,954 units last year, making Malaysia the top market in the Association of Southeast Asian Nations for the sixth straight year, but it was likely to lose out to Thailand by 2007 or earlier, said the Malaysian Automotive Association (MAA).
MAA president Aishah Ahmad said the government's announcement last month that it would raise excise duties to offset tariff cuts under Afta has created uncertainties over future pricing structure.
December sales dropped nearly 10 percent year-on-year as many consumers waited for cheaper cars on news import tariffs of between 42 to 300 percent would be cut from this year to 20 percent by January 1, 2005 and down to five percent by 2008, she said.
"I don't expect it but the average layman on the street still think prices are going to come down.
"Even when we tell them that we don't think so, they don't believe us. So the faster the details of the policy are announced, it will be better for the industry," she told a news conference.
For the rest of this story and more, subscribe for only RM150 a year. If you're already a subscriber, please sign in.
Sign in Subscribe now