ETCM: Lower excise duties will hurt automotive industry

KUALA LUMPUR: Edaran Tan Chong Motor Sdn Bhd (ETCM), a wholly-owned unit of Tan Chong Motors Holdings Bhd, says the proposal to bring down car prices and excise duties will have a negative impact on the industry.

Executive director Datuk Dr Ang Bon Beng said discussions must be held with used car operators, dealers and traders to obtain their feedback on the proposal before it was implemented.

He said the proposal would have a negative impact on new car dealers as they would have tied-up their funds in new vehicles as stocks.

“If the value of cars suddenly goes down, the dealers are certain to lose out,” he said after breaking fast with members of the media.

Ang said the proposed price reduction would affect the used car industry badly and this could result in steep losses as consumers would opt to buy cheaper, new cars over used cars.

He said 14% of used car buyers were still paying for their loans and they would lose out if the value of cars depreciated.

“Although the move will be good news for consumers, a proper study is needed in order to come out with a holistic approach before implementing the proposal,” he said.

Ang also said the easing of car prices and excise duties would reduce Government revenue by RM7bil. - Bernama