Planning to buy a new vehicle? Applying for a car loan will help you finance your purchase quickly. Most prominent banks in Malaysia offer new and used car loans at attractive rates of interest, up to 90% of the vehicle cost, to be precise. Take a look at the following table to compare car loan interest rates. You can also check if the eligibility criteria to see if you are applicable to apply for the loan.
| Bank | Interest Rate | Tenure | Finance Margin | Know more |
|---|---|---|---|---|
Affin Bank |
3.85% p.a. (Base rate) | Up to 9 years | Up to 90% | Check More |
Bank Islam |
2.90% p.a. - 3.60% p.a | Up to 9 years | Up to 100% * | Check More |
Bank Rakyat |
2.50% p.a. - 15.00% p.a | Up to 9 years | Up to 100% * | Check More |
BSN |
2.53% p.a. - 3.15% p.a | Up to 9 years | Up to 90% | Check More |
CIMB |
2.75% p.a. - 7.95% p.a | Up to 9 years | Up to 90% | Check More |
Hong Leong |
10% (flat interest rate) 17% p.a. (floating interest rate) |
Up to 9 years | Up to 90% | Check More |
Maybank |
3.40% p.a. – 4.50% p.a | Up to 9 years | Up to 90% | Check More |
Public Bank |
3.52% p.a. | Up to 9 years | Up to 90% | Check More |
Ambank |
As per the bank’s discretion | Up to 9 years | Up to 90% | Check More |
Al-Rajhi Bank |
As per the bank’s discretion | Up to 9 years | Up to 90% | Check More |
Bank Muamalat |
As per the bank’s discretion | Up to 9 years | Up to 90% | Check More |
RHB |
As per the bank’s discretion | Up to 9 years | Up to 90% | Check More |
Kuwait Finance House |
As per the bank’s discretion | Up to 9 years | Up to 90% | Check More |
| Bank | Interest Rate | Tenure | Finance Margin |
|---|---|---|---|
|
Affin Bank |
6.71% p.a | Up to 9 years | Up to 90% |
|
Hong Leong |
10% (flat interest rate) 17% p.a. (floating interest rate) |
Up to 9 years | Up to 90% |
|
Public Bank |
6.72% p.a | Up to 9 years | Up to 90% |
|
RHB |
Up to 12.00% p.a | Up to 9 years | Up to 90% |
Everything you need to know about car loans in Malaysia. Make the search for your car loan easier with these tools and guides.
Types
Rates
Calculator
Settlement
Glossary
Car Loan also known as Hire Purchase, is a type of financing plan available to individuals as well as institutions to help finance the purchase of a vehicle/car.
On the basis of financing principles, there are two types of car loans available:
On the basis of the type of the car, the car loan can be classified into the following types:
The following is the list of features and benefits associated with car loans:
Let’s take a look at the list of banks and financial institutions that offer car loans in Malaysia:
Check out Car Insurance In Malaysia
The eligibility depends upon a list of factors like customer’s legal capacity, credit character, payment behaviour in the past, and the bank’s specific requirement. The following are the basic car loan application process requirements:
Nationality Criterion
Age Criterion
Employment Criterion
The car loan process may require a different set of documents depending upon the type of applicant and the car loan package. Let’s take a look at the different type of documentation required for different type of customers:
Investing in a used car will save you a lot of money. You only pay the quoted price and there are no hidden charges. If you are looking for used car loans in Malaysia, you will find a lot of major banks providing them at affordable rates with flexible repayment options. Take a look at some of the used car loans offered in Malaysia.
| Interest Rate/Profit Rate | ||||
|---|---|---|---|---|
| Affin Bank | Conventional Hire Purchase | Pegged to base rate at 3.85% p.a. flat | Pegged to base rate at 3.85% p.a. flat | |
| Affin Islamic | Hire Purchase-i | Pegged to base financing rate at 6.71% p.a. | Pegged to base financing rate at 6.71% p.a. | |
| AmBank | AmAUTOMate | 4.50% p.a. | 4.50% p.a. | |
| AmBank Islamic | Arif Hire Purchase-i | Pegged to bank’s base financing rate. | Pegged to bank’s base financing rate. | |
| Bank Muamalat | Hire Purchase-i | Depends upon the current Bank’s prevailing rates. | Depends upon the current Bank’s prevailing rates. | |
| CIMB | Hire Purchase | 2.75% to 4.70% p.a. | 4.00% to 7.95% p.a. | |
| CIMB | Hire Purchase-i | 2.75% to 4.70% p.a. | 4.00% to 7.95% p.a. | |
| Hong Leong | Auto Loan | Fixed rate: Up to 10% p.a. | Fixed rate: Up to 10% p.a. | |
| Floating rate: Up to 17% p.a. | Floating rate: Up to 17% p.a. | |||
| Hong Leong Islamic | Auto Financing-i | 3.78% flat | 3.78% flat | |
| Maybank | Al-Ijarah Thumma Al-Bai | 3.40% to 4.10% p.a. flat | 4.25% to 4.50% p.a. flat | |
| Maybank | Hire Purchase | 3.40% to 4.10% p.a. flat | 4.25% to 4.50% p.a. flat | |
| Maybank | My First Car Loan | As per bank’s discretion. | As per bank’s discretion. | |
| Public Bank | Aitab Hire Purchase-i | Pegged to base financing rate at 6.72% p.a. | Pegged to base financing rate at 6.72% p.a. | |
| Al Rajhi | Superbike Financing-i | As per bank’s discretion. | As per bank’s discretion. | |
| Al-Rajhi | Automobile Financing-i | As per bank’s discretion. | As per bank’s discretion. | |
| Bank Islam GradHitz | Vehicle Financing-i | 2.90% to 3.60% p.a. | NA | |
| Bank Islam | Vehicle Financing-i | 2.90% to 3.60% p.a. | NA | |
| Bank Muamalat | Muamalat Vehicle Financing-i GradPack | Depends upon the current Bank’s prevailing rates. | NA | |
| Bank Rakyat | Auto Hire Purchase Financing-i | 2.80% to 3.50% p.a. | NA | |
| Bank Rakyat | Vehicle Financing-i | Up to 15.00% p.a. | NA | |
| BSN | Hire Purchase | 2.53% to 3.15% p.a. | NA | |
| BSN | Hire Purchase-i | 2.53% to 3.15% p.a. | NA | |
| Hong Leong Mach | Cruise Control Car Loan | As per bank’s discretion. | NA | |
| KFH | Automobile Ijarah-i | As per institution’s discretion. | NA | |
| RHB | Hire Purchase | As per bank’s discretion. | NA | |
| RHB | Vehicle Financing-i | Up to 12.00% p.a. | NA | |
The monthly repayment instalment of a car loan calculation depends upon the total approved financing amount, the profit or interest rate associated with the plan, and the length of the financing tenure.
For a fixed rate car loan, the monthly instalment can be calculated using the following formula:
M = [A + (A x R x T)] / t
Where M = Monthly instalment; A = Total financing amount approved; R = Profit rate or interest rate; T = Financing tenure in years; t = Financing tenure in months.
Check out How to Get a Car Loan Faster in Malaysia
Before a customer opts to get a car loan, he/she needs to keep some factors in mind. The following is a guide to choose the right car loan:
Q. What are the factors that affect the financing amount associated with a car loan?
A. The approved amount of a car loan depends upon the following factors:
Q. What is the difference between fixed and floating rates of interest associated with a car loan?
A. With a fixed interest car loan, the monthly repayment instalments will be fixed and known from the beginning of the loan period. But the floating rates of interest depend upon the base rate of the bank and market conditions. Thus floating rate of interest may change during the loan period, that might imply a change in the amount of monthly repayment instalment amount.
Q. What are the factors that affect the interest rate or profit rate associated with a car loan package?
A. This mainly includes credit history and a credit score of the applicant, monthly income and debt-to-income ratio of the applicant, the car’s type, model and age, down payment paid for the car, and tenure of the loan. The interest/profit rates can also vary with a change in market conditions and the base rate or base financing rate of a bank.
Q. Is it mandatory for one to have a savings or current account with the bank offering the car loan?
A. No. It is not compulsory for the customers applying for a bank’s loan package to have a savings or current account with the bank.
Q. How much time does a car loan process take for approval?
A. Once an applicant fills out the car loan application form and submits it to the bank along with the set of required documents, the bank will check the validity of the documents. After successful validation, the bank will contact the customer with the details regarding the loan.
Q. What are the ways in which I can make repayments on my car loan?
A. The repayments for a car loan can be made via interbank GIRO, by placing standing instructions, or by making an over-the-counter payment at the nearest branch of the bank or financial institution that has offered the car loan.
Q. What are the kind of charges I have to bear with a car loan?
A. Depending upon the car loan package, you can be charged with the registration fee, processing fee, stamp duties, insurance or takaful coverage charges among others.
Q. When do I get the ownership of the vehicle with a car loan?
A. With a hire purchase facility, the ownership of the vehicle will be transferred to you once you complete the repayment of the loan.
Q. Does a car loan application process require one to be accompanied with a guarantor?
A. The requirement of the guarantor may vary from application to application. The customers not meeting the bank’s terms and conditions may be asked to bring a guarantor to the application process. Specific bank car loan packages that are open to foreigners may also require a local guarantor during the application process.
Q. Should I take the motor insurance coverage or takaful coverage with my car loan?
A. For most of the banks, it’s mandatory for you to get the motor takaful/insurance coverage on your car loan as per the Hire Purchase Act 1967.
Q. What if I miss to pay a monthly repayment instalment on my car loan?
A. In case you miss timely payment on an instalment, you will be charged with late payment charges. Depending upon whether the car loan package is under conventional financing principle or Islamic principle, the charges may differ. The following are the late payment charges associated with car financing packages under both the principles:
Conventional car financing: Up to 8% of the overdue instalment amount.
Islamic car financing:
Where IIMM = Islamic Interbank Money Market.
Q. Am I allowed to partially pay the monthly instalment with my car loan?
A. No. The banks or the institutions offering a car loan don’t allow their customers to pay the monthly instalment partially. You are advised to pay the agreed upon amount on or before the due date every month.
Q. What happens if, during the loan facility, I decide to pay the entire outstanding principal at once? Will the bank allow me to do the same?
A. Most of the banks allow their customers to make an early settlement on the car loan.
Q. Is there a benefit associated with an early settlement on my car loan?
A. Most of the banks offer a rebate to the customers with an early settlement of their financing facility. The rebate is calculated on the unutilised portion of the total tenure.
Q. How is the monthly repayment instalment calculated with a car loan package?
A. The monthly repayment instalment for a loan package is based on a flat interest/profit rate is calculated using the following formula:
M = [P + (P x R x T)] / t
Where M = Monthly instalment amount; P = Total approved financing/loan amount; R = Interest rate or profit rate; T = Financing/Loan tenure in years; t = Financing/loan tenure in months.
Q. What is a 24-month instalment?
A. A 24-month instalment means a car loan repayment tenure ranging up to 24 months. You can pay your instalments over the plan for 24 months/2 years.
Q. How do you calculate hire purchase?
A. You can calculate the rates and instalment amount for your hire purchase facility with the use of a calculator tool available on many banks’ websites and comparison sites. In this tool, you will have to include the price of your car, down payment amount, tenure of the loan, and applicable interest rate to get the amount for your monthly repayment.
For example,
Consider that ‘A’ is your loan amount and ‘B’ is the loan tenure (in years). Here, the interest/profit rate applied is ‘C’.
Using this formula, the total interest, monthly interest, and monthly instalment of your car loan is as follows:
Total interest = C/100 x A X B= X
Monthly interest = X / (B x 12)
Monthly instalment = (A + X) / (B x 12)
Q. What is the down payment on a car?
A. A down payment on a car is the amount you pay in advance while buying a new car. The remaining amount can be paid with a hire purchase or car loan facility borrowed via a bank or financing institute. This borrowed amount other than the down payment made needs to be paid back to the bank in set monthly instalments and with applicable interest/profit rates.
The hire the down payment you make, the lower will be the loan amount and monthly instalments. These days, many financing institutes offer ‘zero down payment’ facility while buying a new car. However, this provision can make you pay more as an interest throughout your loan tenure as your loan amount will be more.
Q. What kind of credit score do you need to buy a car?
A. When you are getting a loan to buy a car, you need a good credit score to have the loan approved. Approval or disapproval of a loan along with the amount of loan offered depends upon your credit history. A good credit score ranging between 697 and 850, can fetch you a car loan much quicker than an average or bad score. If you do not have a good credit score, your application might get rejected.
Q. How much should I spend on a car based on salary?
A. Buying a new car is quite expensive in Malaysia. Buying a new car means inevitable monthly expenses like fuel, monthly instalment, parking and maintenance charges, to name a few. So what is the best way to invest in a new car?
Analyst Michael Kling shares in his finance blog that you should stick to the 20/4/10 rule while purchasing a new car. Which means, you should make a down payment of 20% and the loan tenure should not be more than 4 years. Moreover, based on your monthly salary, you should not spend more than 10% of your gross income for a new car.
This rule offers a balanced way of spending on your dream vehicle without having to burn a hole in your pocket.
Q. Do you need a down payment to lease a car?
A. While buying a new car, you will have to make a down payment of around 10% of your car’s price. However, at the time of leasing a car, you may need to pay a security deposit in the form of a down payment. The security deposit is usually much lower than the down payment. Moreover, it will also be refunded to you at the end of the lease if no damage to the vehicle is incurred.
Q. How much do I need for a down payment?
A. To make a down payment for your car purchase, you may have to shell out 10% of the price of your car. Which means, if your vehicle is worth RM60,000, you may have to make a down payment of RM6,000.
Q. Do you get your down payment back on a car lease?
A. While leasing a car, you pay a down payment in the form of a security deposit. At the end of your lease, you can get this deposit back if you return the vehicle undamaged. However, if there is any damage incurred to the vehicle, the amount needed for its repair will be deducted from your deposit. The remaining amount will be handed over to you at the end of your lease tenure.
Q. Can I get a car loan with a credit score of 700?
A. By the standards of CTOS, 700 is considered as a good credit score. CTOS is also widely used by financial institutions to decide an applicant’s creditworthiness while approving their loan application.
Therefore, if your credit score is falling between 697 and 717, you should get a car loan. However, other eligibility criteria, such as age, nationality, etc. are also considered while approving a loan request.
Q. How can I raise my credit score in 30 days?
A. There is no hard and fast remedy that you can use to improve your credit score in a short period of time. However, you can consider the following tips if you want to boost your credit score:
Q. What does zero interest mean when buying a car?
A. 0% interest rate or zero interest means you do not have to pay any interest while buying a car. You may have to make a down payment while buying a new car and later on, you make monthly installments that come without any interest.
Car loan applications in Malaysia saw a new low after the end of the tax-free period. The total number of car loan applications dropped by a whopping 4.5 billion. While the applications stood at RM8.7 billion in June 2018, it has reduced to RM4.2 billion as of September 2018.
Before this drop, Malaysia also saw a slump in car loan applications in February 2010. The total applications for car loans were just 4.1 billion.
During the tax-free holiday, Bank Negara had taken off the Goods and Services Tax (GST). This increased the interest of consumers to invest in a vehicle. There demand from July to August 2018 was such that automobile manufacturers had numerous orders on a weekly basis. Some car companies had exhausted some makes and models of vehicles as well.
Not just the number of applications, the total number of approved car loans fell from RM5.39 in July 2018 to RM2.9 billion as of September 2018.
There was however, a slight improvement in sales figures in October 2018. While the total number of delivered vehicles were 31,241 in September, it increased to 47,273 vehicles in October 2018. The sales figures are expected to be stable in the months of November and December 2018.
21 November 2018
Car sales across Malaysia dropped by almost 52% in September after the influx of advanced purchases during the 3-month tax holiday from June to August. Uncertainty over new taxes was one of the major contributors for the slump. Another reason is that most distributors had wiped out their stocks during the tax-free months. The 3 month no-tax period saw record sales and car loan applications.
Total Industry Volume (TIV) dropped to just 31, 241 in September. TIV in August stood at 65,551. Commercial vehicle volume also dropped to 4,219 from 9,779 in September. Vehicle production fell 3% year-on-year when compared to the same month last year. Malaysian Automotive Association (MAA) predicted the sales for October to remain the same as September.
Many manufacturers are preparing for a slow sales market for the rest of the year and possibly in the first quarter of 2019, while some manufacturers like Honda are expecting a further dip. The decline in sales has had a stronger impact on the affordable segment when compared to the premium segment. The Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad is of the opinion that sales for knocked-down vehicles will remain low for the next few months.
16 October 2018
According to sources, Maybank IB Research has stated that there was a hike in consumer spending during the 3-month tax holiday. However, a dip was seen just after the end of the tax holiday. The statement was released based on the analysis of consumer credit indicators.
The change can be observed when you analyse the car purchase patterns in August 2018. While the private car loan approvals in August rose by 33.7% year-on-year, the loan applications dropped by 9.1% year-on-year.
According to another report provided by RHB Research Institute Sendirian Berhad, the broad money of Malaysia is expected to grow by 5% by the end of the year. It recalled that the growth in the previous year was 4.7%. In contrast, the loan growth of the banking system is expected to remain at 5.2% as there is a high demand for credit facilities.
The research firm gave a picture of the inflation that reduced from 3.7% in 2017 to 1.2% in 2018. The speculations are made considering that the overnight policy rate will stay at 3.25% even in 2019.
03 October 2018
During the 3-month tax holiday period from 1 June 2018 up to 31 August 2018, the car loan applications and approvals grew at an average rate of 27.7% and 52% on a monthly basis. Bank Negara Malaysia (BNM) had stated that the average growth in applications and approval in the month of July 2018 as 24.8% and 39.1% respectively.
BNM also mentioned that the net financing growth, i.e. the total outstanding loans offered by the whole Malaysian banking system, increased to 7.4% in August 2018 as compared to 7.2% in July 2018.
The loan growth of the banks has maintained consistency at 5.4%, while that of the corporate bonds has increased to 13.4% in August 2018. Though there has been a depreciation in the value of ringgits, it has not created a negative effect on the bonds and the equity market.
01 October 2018
Steady growth is expected in the second hand car market of Malaysia, as per ELK-Desa Resources Bhd. Profits for the hire purchase financing company recorded a 13% rise in profits to RM25.92 million in 2017-18, with profits exceeding 5% per year. It has also recorded a 10% rise in overall profits to 104.13 million.
Reports suggest that good management is the leading cause behind the non-performing loan rate being below 1%. ELK-Desa’s executive director and chief financial officer Henry Teoh Seng Hee noted that the increased customer base is growing at 10% to 15% per year. This, along with the 3-month tax holiday period has encouraged people to buy new cars and trade old cars. Most of the consumers in this category are middle-income earning individuals in Klang Valley.
New financing ventures for ELK-Desa include housing and other related businesses. They have recently acquired the licence from the Housing and Local Government Ministry, which will allow them to lend money for housing.
14 September 2018
Car manufacturers are yet to decide on new prices after the new Sales and Services Tax (SST) was introduced. The tax shall be implemented as per the guidelines of the Royal Malaysian Customs Department.
Original equipment manufacturers (OEMs) are reported to be in discussion with Customs over the finalisation of the tax levied. They had been informed of this new directive by Customs on 23 August 2018.
The new prices of cars are expected to increase by 1% to 2%. It is reported that the Industrial Linkage Programme (ILP) exemption is not a part of the new calculation as decision on it is pending with the Ministry of Finance. ILP is given to car manufacturers setting up operations in Malaysia.
Reports suggest that Proton car prices are expected to rise by RM1,500 to RM3,000. Perodua car prices are also expected to increase by RM5,000 to RM6,000.
This move is expected to impact the number of new car applications by consumers and also the number of loans applied. Loan applications for new vehicles had exponentially increased in recent times due to previous zero consumption taxes.
12 September 2018
According to sources, due to the debt service ratio imposed by banks in Malaysia, more than 50% of adult Malaysians are not qualified to apply for car loans. Financial expert, Liew Ooi Hann discussed this topic at the roundtable discussion titled 'First Car, Big Deal' in Petaling Jaya. The panellists of the discussion also talked if a first-time car buyer should opt for a new car or a second-hand one.
According to Liew Ooi Hann, although there are many other factors why car loans are getting rejected, the main reason behind the rejection is the DSR. The ratio of the applicants’ income to the future repayment outcome is not up to the levels set by banks.
Meanwhile, there has been an increase in loan approvals for passenger cars by 21.9% in the month of June, after a contraction of 2.5% in the previous month. The panellists also discussed car insurance and the factors that determine the premium of the car insurance. They concluded that some of the detariff factors include the make and model of the car, the car's age, the gender of the applicant, the insurer's age, and high-risk theft vehicles and cubic capacity.
21 August 2018
Malaysia Building Society Berhad (MBSB) has disclosed a decline of 1.2% year-on-year in the gross loans and financing. The root cause for the decline is said to be the proposed sale of the segments, such as property financing, personal financing, and mortgage scheduled towards the 4QFY18.
Though the decline was balanced out by corporate loans, it has led to a net profit fall of 5.9% amounting to RM85.69 million in the second quarter of 2018 (2QFY18). The fall in the profit is said to be a result of a reduced number of gross loans in the second quarter.
The bank also mentioned that the quarterly revenue during 2QFY18 has also dropped by 2.4% as compared to the previous quarter, i.e. from RM813.42 million to RM794.14 million. As a result, the earnings per share in 2QFY18 has come down to 1.37 sen from 1.57 sen in 2QFY17.
However, MBSB said that the prospects of the bank for the financial year ending in December 2018 will be satisfactory. This is because the bank is looking forward to expanding its product base, and will offer mobile and internet banking options to its customers.
08 August 2018
Perusahaan Otomobil Nasional Sdn Berhad (Proton) proclaims that existing dealers and new investors have submitted about 170 applications within three months requesting for a 3S/4S upgrade. About 66 of these applications have been processed and approved.
Proton specifies that Zhejiang Geely Holdings Group, a Chinese firm, has acquired 49.9% of its shares and the initiative to upgrade the dealer network was part of the acquisition. There may be more such initiatives coming up this year in order to build cars that are no less in quality than premium cars.
In April, the buyers of Proton Iriz and Proton Exora will be offered 0% financing for the first year when they sign-up with Hong Leong Bank for a 5-year loan. With the purchase of Proton Saga or Persona in April, the buyer gets a free body kit. With other models, Proton is providing rebates and incentives to drive sales.
16 April 2018
Workshop service liberalisation is a new policy that is being proposed by Datuk Armin Baniaz Pahamin, CEO, CarBengkel, to be a part of National Automotive Policy (NAP). With the proposed policy, the warranty for a new car can be claimed at over 50,000 workshops instead of the 500 workshops recommended by car manufacturers.
Describing the perks of the policy, Armin expressed that maintaining the car at any workshop of the car owner’s choice in any convenient location will reduce the cost of maintenance. The liberalisation would be profitable for over 590,000 car owners per year. He also says that the OEM service centres are usually overcrowded with customers and are being a monopoly. This situation can be balanced by diverting the customers towards independent workshops.
The legal enforcement of Automotive Maintenance and Repair Service Bill, which deals with raising the professionalism among mechanics has been delayed due to the upcoming 14th General Election. Liberalisation will give way to providing the license to well-trained mechanics who provide quality service to car owners.
As of last year, it was found that Malaysia has 53,000 workshops and only 30,000 of them are registered with the Domestic Trade, Cooperatives and Consumerism Ministry. Also, only 500 workshops are direct affiliates of original equipment manufacturers.
Armin Baniaz asks the government to consider supplying original parts to all workshops so that they can benefit with the sales of these parts if not from the consumers.
16 April 2018
In the first quarter of 2018, the German automobile brand, Mercedes-Benz Malaysia Sdn Bhd (MBM) has sold 3,335 cars in the country. These figures have aided the company to achieve a growth of 13.2% in the beginning of the year as compared to the last year’s numbers. In the first quarter of 2017, the auto brand had managed the sale of 2,895 units.
This is registered as a good development considering the poor performance of domestic automobile market in the country.
According to Dr Claus Weidner, President and Chief Executive Officer of the company, January and February saw the most number of car unit deals to contribute to the overall growth. He further informed that limousine models like Mercedes-Benz E, C, and S-Class vehicles have sold 1965 units in total; whereas GLA and CLA Class along with A-Class and B-Class models of the brand have recorded a sale of 596 units in this quarter. Sales for both these segments are also better than the last year’s respective figures.
In a more recent development, Mercedes-Benz Malaysia has also introduced a new electric mobility brand called ‘EQ’ aka ‘Electric Intelligence’, which they hope will be the forerunner for all future electric vehicles.
13 April 2018
Mercedes has added a new member to the electric-powered car market in Malaysia called EQ. EQ stands for Electric Intelligence and was launched at the Paris Motor Show 2016. In addition, Mercedes also redesigned Mercedes C350 e and E350 e and added them to the EQ family. The company plans to release more electric cars in the near future.
MBM (Mercedes-Benz Malaysia) also revealed their outlook on EQ Agility Care package which offers scheduled vehicle maintenance and servicing with EQ power charging wall box when a customer buys the EQ Power C350e or E350e for a tenure of ownership ranging between 3 to 5 years.
As far as charging stations are concerned, all the charging stations at Bangsar Shopping Centre, Sunway Pyramid Mall, Pavilion Kuala Lumpur and others will be rebranded to EQ facilities. Also, the customers will be rewarded with complimentary usage for a year.
MBM disclosed that the company has sold around 3,335 vehicles in the first quarter of the year. These numbers contribute an increase in the performance of the company by nearly 13.2% as compared to the previous year. In particular, 1,965 luxury cars of C, E and S-class, 596 units of compact cars and 90 dream cars in the first quarter.
13 April 2018
As an effective solution to boost car sales, Proton Edar Dealers Association Malaysia (PEDA) has recommended the government to scrap old cars. PEDA has submitted a report to the government requesting to put the Vehicle End of Life policy in force. The policy was initially proposed in the year 2009 and was scheduled to be effective from 2014. However, the negative response from the public made the policy remain on papers.
According to the policy, vehicles that are 15 years of age or above must go through an inspection every year as a mandatory step for road tax renewal. If the vehicle does not clear the inspection, it must be repaired or scrapped, similar to the Singaporean policy.
The proposal made by PEDA says that the those who own vehicles that are 10 years of age or more would get a rebate of up to RM5,000 if they exchange their vehicle for a brand new vehicle from a local OEM. Adding to this proposal, Datuk Armin Baniaz Pahamin, Advisor, Peda claims that there over 28 million registered cars in Malaysia among which many are not in a safe driveable state.
13 April 2018
The Proton Edar Dealers Association Malaysia (PEDA) has recently made an appeal to the Malaysian government to reinstate its ELV (End of Life Vehicle) policy.
The association wants the ELV policy, which was initially introduced back in 2014 and was withdrawn later, to be reinstated in the country to enhance the sale of new vehicles. Datuk Armin Baniaz Pahamin who is a PEDA adviser, recently stated that Malaysia presently has around 28 million registered cars, but maximum of the cars may not be qualified to drive on the roads. With no age-limit imposed on the cars of the country, unlike other developed countries; now citizens are reluctant to buy new cars and this is slowing down new car sales.
According to a report, the total industry volume (TIV) has witnessed a descending trend since 2015, and the sale of new cars is constantly falling. For example, in comparison to the numbers of year 2016, which registered the sale 580,123 units, in last year, only 576,635 units of vehicles were sold.
Consequently, the association has urged the government to address this issue in the next National Automotive Policy (NAP) review.
12 April 2018
Ongoing Perodua takeover deal between UMW Holdings and MBM Resources (MBMR) has witnessed a twist as Daihatsu is not in favour of UMW taking an overpowering stake in Perodua.
According to latest reports, Datuk Abdul Rahim Abdul Halim, chairman of MBM, has recently mentioned about a letter from the Japanese shareholders (Daihatsu) that gives their opinion on the Perodua deal. He further mentioned that according to the letter, the Japanese investors are against the proposal of any one company holding a maximum amount of stake in Perodua.
Until now, UMW Holdings was all geared up to take control of Perodua with a plan to increase its stake from the present 38% to 70.58%. In this attempt, UMW had also offered proposals to PNB Equity Resources (PER) and MBMR, which also are shareholders in Perodua, to take over their stakes in the company. MBMR, however, had rejected the offer.
Now, if reports are to be believed, UMW has offered to extend the offer till the end of April.
12 April 2018
Jaguar Land Rover Malaysia (JLR MY) is launching their latest Range Rover Velar model this month in Malaysia. The SUV is packed with exclusive contemporary features that give a pleasurable driving experience.
The vehicle will be offered as a P250 model and the AWD system will be backed with Intelligent Driveline Dynamics (IDD) that provides better traction on- and off-the-road. Among other features, the car’s exterior gear list includes retractable door handles, 21-inch wheels that offer a choice of 4 different designs, and full-LED headlamps among others. Furthermore, the InControl Touch Pro Duo Navigation system of the SUV allows you to operate its multiple features, concurrently. A Surround Camera System, Interactive Driver Display digital instrument board (12.3-inch), hands-free powered rear gate, and Auto High Beam Assist are among some other special specifications of the vehicle.
For safety purpose, the model is equipped with 6 airbags and a cruise control speed limiting function which can come in handy for a driver.
11 April 2018
The car prices have been reduced by 16.38% on an average from 2013 to February 2018. This development is in-line with the targeted reduction of 30% in car prices as assured by the Malaysian government five years ago.
Datuk Seri Ahmad Maslan, Deputy Minister, International Trade and Industry said that the car prices had dropped by 0.52% last year. He also said that even if the prices rose by 2.13% in 2016, the overall drop in car prices reached 12.55%. The reason for this fluctuation is said to be the depreciation in the ringgit value.
Ahmad also listed the model-wise reduction in car prices, such as Proton Exora 1.6—4.7%, Perodua Myvi 1.3—19.4%, Perodua Alza 1.5—11.3%, Honda Jazz—19.3% and Mazda CX-5—6.6%.
He said that since car prices are not determined by the government but by the manufacturers, the government faced a lot of challenges in the process of price reduction. Some of these challenges being market uncertainty, price of completely knocked-down parts, transportation cost, car loan affordability, car insurance premium rates and others.
The government has been discussing with the car manufacturers regarding the various possible ways to reduce the car prices that include but not limited to introducing new models at affordable costs, giving up on importing and beginning new installation plants in Malaysia, etc.
2 April 2018
