Japanese automaker Honda said today it will raise vehicle prices by between three and 13 percent following a recent duty revision but it expects to remain competitive.

The increase ranges from three percent for Civic and Accord models which are locally assembled in its plant in southern Malacca state, to 13 percent for the imported Honda Stream, it said in a statement.

"Even with the new pricing, Honda Malaysia believes that its range of vehicles is still competitive in the market," the company said, adding that customers can still be assured of value and good after-market services.

The move was attributed mainly to the introduction of a new system in January that cut import tariffs cut but was coupled with the introduction of excise duty, normally reserved for local products, on all imported cars. Honda also faces pressure from the stronger yen.

New auto tariff

Japan's Honda Motor owns 51 percent of Honda Malaysia, while its local partners DRB-HICOM Bhd. and Oriental Holdings hold 34 and 15 percent respectively.

Last year, Honda Malaysia sold 17,087 vehicles, representing a 4.2 percent market share behind Toyota and Nissan in the non-national car segment.

Malaysia's new auto tariff comes ahead of the Association of Southeast Asian Nations (Asean) Free Trade Area (Afta), where import tariffs for most products in the region were cut to below five percent over the last year.

Malaysia, the region's top passenger car market, obtained a two-year reprieve for its auto industry until 2005 but has said it will defer reducing duties until 2008, a move analysts said reflected deep-seated concerns over the survival of the local car industry. - AFP