By BERNAMA
The local automotive industry is bracing for a healthy competition once the government reduces car prices gradually as promised in the 13th General Election manifesto by the Barisan Nasional (BN).
BMW Group Malaysia Chief Executive Officer Gerhard Pils said the reduction would cause local carmakers — Proton and Perodua — to compete with imported cars locally and internationally.
“Local manufacturers should not be afraid if the government reduces car prices. They must start thinking of how to make local cars better and more competitive with international car manufacturers like Honda, Mazda and Mercedes-Benz,” he told Bernama today.
Pils said both local and international manufacturers could adopt the high technologies used by them not only to invent new high technology but also to develop existing technologies for a brighter future in the industry.
Gerhard Pils
“They can adopt high technology, which their competitors have and they can upgrade their weaknesses by looking at the high technology,” he said.
Pils said the gradual reduction of car prices would also open up manufacturers’ mind to create something sophisticated to attract buyers to buy their products.
He supported the government’s initiative to lower car prices in stages as a move to support the local automotive industry.
“If the government reduces car prices on the spot as the opposition would like to do, it only brings good news to the buyers but not for car makers and distributors like us.
“When it is done gradually, stage-by-stage, it will give us some time to investigate the new retail price for cars that suits the cost of raw materials, operational, manufacturing and related costs,” he said.
Pils also said the automotive industry would become more active once car prices have been lowered.
International Trade and Industry Minister Mustapa Mohamed gave an assurance recently that his ministry would work towards effecting appropriate action programmes for the gradual lowering of car prices.
– BERNAMA
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