Post-GST: Perodua Announces Price Reduction Between 0.1% and 1.6% On Its Vehicles

With the implementation of the Goods and Services Tax (GST), Perodua will be reducing its vehicle prices between 0.1% and 1.6% depending on model. Furthermore, Perodua will maintain its spare parts prices by absorbing the impact of GST. However, no official GST-inclusive price list was provided as of yet.

Perodua President & CEO Datuk Aminar Rashid Salleh said, “We have always been supportive of the government’s intention and the customers’ expectation in terms of providing affordable and value for money vehicles. We had repositioned the price of some of our models and added value ranging from 3% to 12% since 2013. In addition all our models have a 5-year warranty for the peace of mind to our customers.”

Among the first product to emerge from the cost saving initiative was the Perodua S-Series that has managed to accumulate sales of approximately 153,000 units from March 2013 and January 2015.

Aminar also added that Perodua was supportive on the implementation of GST. “While the impact of the GST may result in reduction to some areas of our business, unfortunately there are other areas of our business that will result in an increase in cost”, Aminar said.

That increase in cost could possibly be affecting the dealers where a report from The Sun Daily stated that the Perodua Dealer Association is requesting the government to allow its members to reclaim the previously implemented 10% Sales Tax on invoices to were issued pre-GST.

Wan Kamal Wan Ismail who heads the association said the unsold stocks which have had their 10% sales tax already paid, will be subject to an additional 6% GST after April 1^st, resulting in double taxation and substantial losses for each independent dealer.