By Chan Quan Min
Roland Folger
High-end carmaker Mercedes-Benz will fuel its expansion in Malaysia this year by capitalising on its unique position as the only marque currently offering luxury hybrid models with full duty exemption.
Speaking to the press today, Mercedes-Benz Malaysia president and CEO Roland Folger said that this is the year of its “hybrid offensive strategy.”
The carmaker added a second locally assembled hybrid vehicle to its range with yesterdays launch of the E300 Bluetec Hybrid, which runs on diesel fuel.
Its first locally assembled hybrid vehicle, the S400L Hybrid, was launched in May last year. Over 600 units were delivered to customers last year and the waiting list remains long due to the popularity of the model.
The duty exemptions have allowed Mercedes-Benz to price its locally assembled hybrid vehicle competitively. The new E300 Bluetec Hybrid is available from RM348,888 and the S400L Hybrid from RM588,000.
Both models are assembled at the carmaker’s plant in Pekan, Pahang under a joint venture arrangement with DRB-Hicom.
Folger told reporters today the capacity of the carmaker’s S-Class assembly line will be doubled with the addition of a second shift to keep up with demand. The second shift should allow for the assembly of up to eight vehicles a day.
According to Folger, the implementation of the Goods and Services Tax (GST) from April and the recent fall in the value of the ringgit against the US dollar should not affect car prices.
“As a company we are in favour of GST,” Folger said. “But our pricing is dependent on our customers.”
He stressed that it was “not the attitude” of the carmaker to accept any price increases from the implementation of the tax as had been suggested by some of their partner dealerships.
Most experts say the replacement of the Sales Tax on cars and car parts with the GST should result in no change or a slight decrease in car prices. However, the actual effect is difficult to predict.
The recent fall in the ringgit against the US dollar should have no effect on car prices in Malaysia at this stage, Folger said, because the value of the euro is a more important determinant of prices for Mercedes-Benz cars. Both the ringgit and euro have been falling in tandem with the US dollar over the past few months.
Record breaking year
Last year was a successful one for Mercedes-Benz Malaysia, Folger said. Sales of passenger vehicles recorded a 29% increase in 2014 with total sales of 6,932 vehicles.
The best selling models where in the carmaker’s Next Generation Compact Car family comprising the A-Class, B-Class, and the newly launched CLA and GLA.
“This past year has been incredible for Mercedes-Benz Malaysia in every way,” Folger exclaimed.
“We saw record sales, especially in the passenger car segment. We flexed our muscles across the entire product line with the Next Generation Compact Car portfolio and brought customer experience to an all-time high.”
You must be logged in to post a comment.