KUALA LUMPUR: The promise by Pakatan Rakyat to reduce car price to only RM25,000 as stated in their election manifesto will “kill” the used-car industry in the country, says Tun Dr Mahathir Mohamad.
He said what was stated in the manifesto was “something easy to say” but was very difficult to be implemented.
“Second-hand car dealers cannot sell used cars anymore. If second-hand cars cannot be sold, then even brand new cars cannot be sold.
“Car owners wanting to sell their cars to second-hand car dealers to raise money to buy new cars cannot do so as used-car dealers have incurred losses and have ceased operations.
“The people cannot even buy new cars,” he told reporters after delivering his lecture at the Third Malaysia-Japan Leadership Lecture Series at the Malaysia-Japan International Institute of Technology.
“Second-hand car dealers cannot sell used cars anymore. If second-hand cars cannot be sold, then even brand new cars cannot be sold.
“Car owners wanting to sell their cars to second-hand car dealers to raise money to buy new cars cannot do so as used-car dealers have incurred losses and have ceased operations.
“The people cannot even buy new cars,” he told reporters after delivering his lecture at the Third Malaysia-Japan Leadership Lecture Series at the Malaysia-Japan International Institute of Technology.
Dr Mahathir was responding to Pakatan Rakyat’s manifesto which promises to revamp the National Automotive Policy to ease the people’s burden by producing cars at the lowest price of RM25,000 besides lowering excise duties periodically with a view to scrap excise duties in five years so that car prices will be more competitive.
“By selling cars as low as RM25,000, which is affordable by the people, the country, particularly in Kuala Lumpur, will be facing serious traffic congestion problems,” he said.
Dr Mahathir said the government needed revenue from import and excise duties to fuel the economy and to finance the subsidies for the people.
Asked to comment on the announcement by the International Trade and Industry Minister Datuk Seri Mustapa Mohamed that import duties for completely built-up (CBU) cars from Japan would be lowered, the former finance minister said the move would not “kill” the local automotive industry.
He, however, acknowledged that the move would create more challengee to the domestic automotive industry.
“The local automotive industry must have protection, if there is any. As the adviser to Proton, of course, I want Proton to be able to sell more cars.
“The government’s plan to reduce import duties will affect Proton’s sales,” he added.
Mustapa announced yesterday the import duty of CBU cars from Japan will be lowered to 15 per cent this year following the signing of the Malaysia-Japan Economic Cooperation Agreement.
Under the agreement, import duties for CBU cars imported from Japan will be reduced to 10 per cent next year, five per cent in 2015 and zero per cent in 2016.
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