Comparison of car prices in Germany, UK, USA and Malaysia

Comparison of car prices in Germany, UK, USA and Malaysia

economy luxury Malaysia Mercedes-Benz prices

Most people know that cars in Malaysia are expensive and blame it on the import duties imposed by the Malaysian Government on imported models in order to protect the local car industry. However, I am a bit curious how they came up with prices for Mercedes Benz cars imported into Malaysia as Completely Built Up (CBU) units.

Let us compare the showroom prices of the Mercedes Benz E300 Coup�  in 4 different countries including Malaysia.

Germany (Home Country): 54,740 Euros (Approx. RM 257,950)

UK: �41,025.00 (Approx. RM 230,930)

US: $52,150 (Approx. RM229,355). Considered the entry level E class in the US.

Malaysia: (CBU only) RM458,888

Interestingly, the model is cheaper in both the US and the UK. It is the cheapest in the US, and most expensive in Malaysia among the four countries. Please let me know if the specs differ for the models sold in different counties other than the side in which the steering wheel is placed.

In Malaysia, import duty = 30% for CBUS. Please note that this is on the factory price and not the showroom price.

Excise duty (1,991cc) = 80%

Sales Tax = 10%

The price seems a bit inflated even with all the taxes in Malaysia. 

However, what is surprising is that last year Mercedes-Benz Malaysia posted an all-time record sales of 11,779 units. While other auto car makers are suffering, they actually  recorded an 9% increase in sales (10,845 units sold in 2015). In fact, Malaysia has the highest sales of luxury cars in ASEAN, much higher than either Thailand or Indonesia which has much larger populations.

This is amazing when you consider that the per capita income in Malaysia was about RM36,000 in 2015. Compare that with the per capita income in the US which was about  $30,240 (RM132,965) based on the US Census Bureau in 2015. This indicates that we cannot estimate the market size on overall population size or per capita incomes. It is very important to identify and examine your target segments. 

Note: Mercedes-Benz USA also recorded the highest annual volume in the Country's history at 380,461 units sold in 2015.

Honda BR-V launch in Malaysia

Honda BR-V launch in Malaysia

crossover Honda Malaysia suv

Honda Malaysia unveiled the new Honda BR-V crossover in Malaysia recently. this seven seater comes in 2 variants - the E and V. The car is powered by the 1497 cc 4 Cylinder, 16 Valve, SOHC i-VTEC engine.

Both models have similar specs and the only difference between the two lies in the trimmings. Eg., the V model has chrome handles and water print matt instrument panel and leather seats. It also has an electric tailgate lock and automatic air conditioning and slighly bigger display on the audio system.

 As for safety, the BR-V received a five-star ASEAN NCAP safety rating.

The E variant is priced at RM85,800 (OTR with insurance and GST) and RM92,800 for the V variant (OTR with insurance and GST).

Mitsubishi tops J.D. Power 2016 Malaysia Sales Satisfaction Index study

Mitsubishi tops J.D. Power 2016 Malaysia Sales Satisfaction Index study

customer satisfaction Malaysia

According to the J.D. Power 2016 Malaysia Sales Satisfaction Index (SSI) Study,SM released recently, Mitsubishi ranks highest in new-vehicle sales satisfaction with a score of 815. Mitsubishi performs particularly well in sales initiation, dealer facility, salesperson, delivery timing and delivery process. Mazda rankssecond (808) and performs particularly well in the deal factor. Nissan and Toyota tie for third at 792.

This study was based on responses from 2,010 new-vehicle owners who purchased their vehicles from August 2015 through May 2016. The study was carried out from February through July 2016.

VW reviews vs customer comments

VW reviews vs customer comments

Malaysia service vw

I was a VW fan for a long time. First it was the VW Beetle (old model) influenced no doubt by the Herbie movies. Then it was the VW Hippie camper van. They were so cool, they still are. In the UK, I took a ride on my friend's Golf and was quite impressed by the power and handling. I have also taken part in a few of their social media advertising campaigns in the UK.

Once I got back to Malaysia, I was seriously considering the VW Jetta. However, the news of the emissions scandal suddenly came out. I was shocked that this reputable German company had acted unethically. Though they have admitted cheating, they have left consumers with many unanswered questions. And this included not just the Volkswagen diesels models but their sister brands, Audi and Porsche as well.

Talking to other VW owners here in Malaysia, they were not that concerned with the emission scandal as it did not really affect them. However, I started hearing accounts of bad service, new cars breaking down, faulty parts and expensive parts and service. Some even told me never to buy a VW car. This was really surprising for me as I thought the brand had a good reputation in Malaysia.

I noticed that they have opened up a new big VW 3S centre in Semenyih, on my way to work. The reviews of the new Vento Turbo on various car blogs and sites have generally been positive and I was considering giving it a test drive. I wonder whether the Vento is assembled here in Malaysia or is imported from India where they are now produced.

Anyway, I was curious to see what the visitors to their Facebook page had to say about the new car. There were hardly any positive comments though I must say that who ever is in charge of their Facebook book page is very patient and is doing a good job of replying to the comments.

Take a look:

I have not given up hope but I am going to have to give them a pass for now.

Launch of the Perodua Bezza

Launch of the Perodua Bezza

launch Malaysia perodua Safety sedan

Live coverage of the launch on the 21st of July 2016 was provided by Paul Tan on their You Tube page:

 

Besides Perodua's good reputation among Malaysians, the Bezza also has achieved five stars in the ASEAN NCAP safety assessment for the 1.3L Advance variant (first Perodua car to get 5 stars) and four stars for the other variants.

 No wonder Perodua has reportedly received more than 4000 orders in first five days.

Range Rover Evoque prices: UK vs Malaysia

Range Rover Evoque prices: UK vs Malaysia

issues land rover Malaysia prices range rover

Recently met an old friend after 18 long years. We were university mates and both of us ended up in the UK in quite different occupations. However, despite being only about 100 miles apart we were unable to meet up because of something or the other.

It was quite ironic that we finally met up in Malaysia, around 9000 miles away from the UK. Anyway, we got to talking about cars like car lovers usually do and the cars we drive. My friend recently bought the Ranger Rover Evoque, which coincidentally also happens to be my dream car.

We were discussing car prices and how the Evoque is quite out of my league with prices starting at RM413,888 (without insurance).  Source: Paul Tan.

My friend was visibly shocked as the cost in the UK was around �30K (OTR). That's considered quite a handsome even for a luxury brand. However, it translates to about RM180K at the current exchange rates, which means that we are paying more than double the price of the Evoque here in Malaysia as compared to the UK. 

With that amount, I can buy a 2-sty Terrace/Link House 3 bedroom house near my office in Semenyih, Selangor. So literally the Ranger Rover Evoque is a house on wheels. 

Performance of European car brands in Malaysia

Performance of European car brands in Malaysia

Malaysia Mercedes-Benz vw

According to  recent report, of all European brands sold in Malaysia in 2014, Volkswagen performed the best with sales of 8916 units. They were followed by BMW (7808 units) , Mercedes-Benz (7131 units), Peugeot (5498 units) and Volvo (with 1210 units).

Mercedes-Benz may very well overtake VW this year with the German automaker seeing record breaking sales of 967 units in the first quarter of this year (up 13%). This growth was largely due to the sales of the new locally-assembled E300 Blue TEC Hybrid  (638 units) and the S400L Hybrid (270 units).

Mercedes-Benz E 300 BlueTEC HYBRID

Volvo Car Malaysia expands into Sarawak

Volvo Car Malaysia expands into Sarawak

Malaysia volvo

Volvo owners will now be able to service their cars at the two authorised service centres in Sarawak, located in Sibu and Kuching with more locations planned in the future

Greatwall Group of Companies has been appointed as the new 2S representative.

Wanted - a small car for city driving in Malaysia

Wanted - a small car for city driving in Malaysia

Malaysia perodua Proton

Wanted a small, affordable second car for city driving in Malaysia.
The maximum budget is RM 40K (approx �7298).

If I had that budget here in the UK, I would probably go for a second hand car and would have several options.

However, in Malaysia there are only 2 options available, namely the Perodua ViVA (Yes! That is how the name is written) with prices starting from RM 24,936.45 (for the ViVA 660 BX - Manual, solid white colour) and the Proton Saga with prices from RM 33,426 (for the Saga SV Manual, solid white colour). The SV stands for Super Value.

Dimension wise, the Perodua ViVA (3575 x 1475 x 1530) is slightly smaller but taller than the Proton Saga (4278 x 1680 x 1520).

Looking at the websites of the two Malaysian car companies, I am quite impressed with the information provided from engine specs in detail to the various accessories available.

Though there is nearly RM 8000 difference in prices between the two cars, the Viva seems quite underpowered even for a city car with an engine displacement of only 659 cc. If I choose the ViVA 850 - Manual (847cc), prices goes up to RM 32,756.45.

I am not too concerned about the maximum speed but I am definitely interested in the fuel efficiency.

The Perodua website does not tell us anything about the fuel efficiency, other than mentioning that the cars have been equipped with "Dynamic Variable Valve Timing (DVVT), Double Overhead Camshaft (DOHC) and Electronic Fuel Injection  (EFI)".

The Proton Saga has a CamPro IAFM, 4-cylinder, DOHC 16V 1332cc engine and according to their website, the fuel consumption at @ 90km/h (approx. 56m/h) is 5.7 litres.

So if you had RM 40000 to spend on a car, I would definitely recommend the Proton Saga.

Volvo V40 makes Malaysian debut

Volvo V40 makes Malaysian debut

Malaysia volvo

The new Volvo V40 models made their Malaysian debut at Mid Valley, Megamall concourse today. The models were the new Volvo V40 T4, the Volvo V40 T5 and the Volvo V40 Cross Country. The Volvo V40 boasts a 5 star NCAP rating and a host of new innovations such as Knee Airbags for the driver and radar based Cross Traffic Alert.

At the launch was Keith Sch�fer, Managing Director of Volvo Car Malaysia, who has taken over the reins from Goran Larson (retiring Volvo Car Asia President), a couple of weeks ago.

According to the press relese, the V40 T4 model will be available from RM173,888 for the V40 T4 model, RM188,888 for the T5 model and RM198,888 for the V40 Cross Country. In addition, they come with 5 years free servicing, inclusive of parts, 5 years free warranty and 5 years Volvo On-Call cover.

Keith Sch�fer, Managing Director of Volvo Car Malaysia together with Mr. Lee Ming Tiong, Sales Director of Volvo Car Malaysia

Volvo V40 Cross Country

(From left to right): Sales Director of Volvo Car Malaysia Lee Ming Tiong, Managing Director of Volvo Car Malaysia, Mr. Keith Sch�fer, and President of Volvo Car Asia,Goran Larsson

Thanks to David Lau for the info and pics