PETALING JAYA: There is no slash in car prices per se, with manufacturers explaining that pre-festive promotions and stock-clearing are being conducted.

Responding to reports of a reduction in certain car prices, several firms said models with lower specifications were being offered and extra “freebies” thrown in.

An automotive industry observer said car companies seldom reduced prices unless there was a reduction in duty by the Government.

Another scenario which led to lower prices was if an imported model was locally assembled, with the higher amount of local components used and reduced taxes translating to reduced costs.

“For example, the Mini Countryman, which was re-launched as a locally-assembled model on Thursday, and the Mazda CX-5 last week are about 10% cheaper than the previous models which were first introduced here as fully imported cars,” he said.

The official said as several popular Japanese and foreign models were already locally-assembled, it would not be possible to further reduce prices.

“Reducing car prices might be an easy way to boost car sales but this will affect the resale value of such models and make current owners unhappy.

“Malaysian car buyers place high importance on the resale value of their cars and all car manufacturers are aware of this,” he said.

As such, he said car companies preferred to push sales by offering promotions and deals that would not affect resale value.

These would usually be by special loan rates, freebies like free window tinting, leather seat upgrade, GPS navigation, extended warranties and fuel vouchers and even offering LCD televisions to woo buyers.

At present, Toyota, Mitsubishi, Nissan and Peugeot are offering special promotions and deals.

“The value of deals and packages under our promotion can easily run up to savings of several thousands of ringgit,” said an UMW Toyota Motor spokesman.

Today, Proton will unveil special low-priced variants of its models, with its executive chairman Tan Sri Mohd Khamil Jamil stating that the 10% reduction in prices was possible due to “value engineering”.

A continental car company spokesman said the current competitive environment had caused many car makers to adopt aggressive marketing campaigns.

“Customers have a wide choice of models and brands to choose from these days, so we will have to up our game by offering the best value and deals to close sales,” he said.

The Malaysian Automotive Association is looking at a total industry volume of 640,000 units this year. Vehicle sales for the first four months of the year stood at 210,153 units.
BANDAR SERI BEGAWAN: Proton  introduced the Satria Neo R3 in conjunction with the launch of its first 3S centre in the Brunei capital on Saturday.

Located in the heart of Brunei’s major business centre of Gadong, the 1,179 sq metre establishment is able to showcase a maximum of nine cars, and service up to 11 cars at any time.

Lukman (right) and Haznah at the launch of the centre and the Satria Neo R3. With them are (from left)  United Motors executive director Alfred Yong Foh Sen, Gelan and United Motors chairman Pehin Datu Indera Negara Lt-Col (Rtd) Dato Paduka Hj Mohd Ariffin.

The unveiling of the Satria Neo R3 in Brunei is its first international launch since the car was launched in Malaysia in November 2012.

The Satria Neo R3 is based on the Satria Neo CPS that has been enhanced with a new styling for a distinctive sporty style.

“With our continuous achievements in motorsports, the demand for Satria Neo is also being fuelled and has been further expanded. We believe there’s a market in Brunei for an affordable sports hatch back that is not being fulfilled at the moment,” said Lukman.

“Some of our customers are waiting for the revival of the Satria Neo, to purchase a sports hatchback that is not only competitively priced but proven in quality. The Satria Neo R3 is targeted at the young and the young at heart, and of course motorsports enthusiasts. With the R3 kit, it is 'coolness' that is affordable with performance that is proven.”

In recent months, Proton has been aggressive in exporting the Prevé sedan.

In October, it introduced the model to Australia followed by Thailand in November.

Brunei is the third export market for the Prevé, with 14 Proton models having already entered the sultanate preceding the Prevé.

The Gadong 3S Centre and the Satria Neo R3 were officially launched by acting high commissioner to Brunei Haznah Md Hisham. Present were Proton Holdings Berhad deputy chief executive officer Datuk Lukman Ibrahim and United Motors Sdn Bhd managing director Simon Gelan.

United Motors is the sole Proton distributor in Brunei.
PETALING JAYA: Proton Holdings Bhd is expected to reveal a string of announcements in the next 12 months, including the collaboration with Japanese auto giant Honda and the launch of new models.

Sources said the collaboration would be a multi-layered collaboration, which entailed not only cross-platform development, but would also allowed Proton to play a role in the global supply chain.

“Things are ongoing and moving forward, you will see more announcements in the months to come, inclusive of the introduction of the Preve hatchback,” said the source.

Codenamed the P3-22A, the five-door hatchback variant of the Preve was spotted numerous times on public roads, undergoing testing with substantial parts of the car being camouflaged.

Prospective buyers looking at the Proton Preve. Proton may introduce a five-door
hatchback variant of the Preve.

He hinted that the announcements in the future might include also the Perdana Replacement Model (PRM), long rumoured to be based on the Nissan Fuga, but that rumour was laid to rest after Proton terminated the memorandum of understanding between the national carmaker and Nissan Motor Co Ltd in March 2011.

Another source said Proton actually had plans to use the Accord chassis as the platform to develop the PRM, and this would entail some changes cosmetically for the PRM, which was targeted to be widely used as the new government official car.

The Perdana was launched in 1999, and followed by several more facelifts until 2003, but since then, there have been a void in the market for the model that would replace the aging Perdana.

“The PRM, though based on the Accord, would still entail cosmetic changes, and the engine could be based on the 2-litre Petronas engines Proton bought last year,” he said.

Proton bought the Petronas engine technology for RM63mil, and these engines were developed as part of Petronas' involvement in Formula One racing sponsorship previously.

The source said it was no secret that Honda was expanding in Malaysia, and the higher localisation Honda was pushing for would include the stamping of parts, and there were only a few companies in the country which were capable of doing so.

“It is natural for Honda to choose Proton as a partner based on the long working relationship between Honda and DRB-Hicom,” he said.

He said the PRM would not be the growth driver for Proton as volume would not be substantial, but instead it would be coming from lower capacity engine vehicle models that would drive volume and growth for Proton in the future, despite its weakening market position right now.

Proton sales continued to slide, with the national carmaker recording a 7% decline in March with sales of 11,870 units compared with 12,753 units recorded in March last year. However, it was a surge of 16% compared with the preceding month of February, which recorded 10,229 units.

It is also understood that on last Wednesday, a meeting was held between the management of both Honda, Proton and DRB-Hicom Bhd. It was revealed that this meeting had earned an extra mile towards the progress of specific areas in the Honda-Proton collaboration.

In the meantime, the national carmaker is still working on its vendor rationalisation programme to streamline the vendor network in terms of operations, especially in the quality, competency and delivery areas or QCD.
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