By Sherilyn Goh
Mark Raine
Mercedes-Benz Malaysia does not see itself increasing car prices in the short and medium term, despite the fluctuation in the ringgit and dampened economic conditions, according to its vice-president of sales and marketing Mark Raine.
“We do not foresee price increase in the short to medium term. We are affected by the fluctuation in the ringgit but we constantly monitor the situation, and will try the best of our ability to protect not only the company but also our customers,” Raine told the media present at the Mercedes-Benz Malaysia third quarter for the financial year 2015 (3Q15) results briefing.
Mercedes-Benz Malaysia is 51%-owned by Daimler AG, and 49%-owned by Cycle & Carriage Bintang Bhd.
Asked if the carmaker is expecting compressed margins as a result of the depreciating ringgit, Raine said Mercedes-Benz Malaysia will adopt all financial instruments and measures available to compensate (for foreign-exchange losses) and maintain steady long-term price strategy.
This comes after some carmakers announced their plans to increase car prices following persistent fluctuation in the domestic currency.
Earlier this week, UMW Toyota had announced that it will increase the prices for all of its Toyota and Lexus vehicles by 4% and 16% respectively, effective January next year, to cope with the impact of a weaker ringgit.
Perodua, the biggest national carmaker which controls one-third of the local automotive market share, is also looking at increasing the selling price of its car models if the plunge in the ringgit persists, as some of its car components are imported with the cost denominated in the US dollar.
Reduced prices for C-Class variants
A beneficiary of the customised incentive scheme under the National Automotive Policy (NAP) 2014, Mercedes-Benz Malaysia is also introducing three of its C-Class variants under reduced prices effective today, as all three variants comply with the criteria of the NAP.
The NAP 2014 provides tax incentives to qualifying foreign carmakers in exchange for certain requirements including localisation and energy efficiency.
The carmaker is now introducing three of its C-Class variants – the C200 Exclusive (previously only available for the C250 Exclusive), the C250 AMG and its previous C200 Avant Garde – at reduced prices as all three variants meet the criteria of the NAP 2014.
Its locally produced C-, E-, and S-Class models have continued to drive sales for the German carmaker in 3Q15, accounting for over 70% of sales for the period, while the C-Class takes the lead by registering a 260% year-on-year increase to 861 units in the same period.
Mercedes-Benz has a local production facility in Pekan, Pahang, which assembles its best-selling C-, E-, and S-Class models.
Mercedes-Benz Malaysia charted a 109% growth in car sales in 3Q15, registering a total of 3,033 units sold compared to 1,451 units in the corresponding period last year. As of mid-August financial year 2015 (FY15), Mercedes Benz Malaysia has sold 7,194 units, surpassing full-year figures of 6,932 units in FY14.
Asked if the carmaker is likely to introduce more of the well-received locally assembled models in the future, Raine told KINIBIZ: “We constantly look into that and where we see future market opportunities, we try to grab them when they arise.”
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