2017 BMW 530i M Sport now available in Malaysia

2017 BMW 530i M Sport now available in Malaysia

BMW prices

The new BMW 530i M Sport is here in Malaysia. Comes with a 4 inline cylinder 1,998cc petrol engine, with max output (kW/hp/rpm) 185 / 252 / 5,200 - 6,500 and top speed of 250 km/h. It features a 8-speed Steptronic Sport transmission.

This is the seventh generation in the G30 5 series and the version here in Malaysia is imported Completely built up (CBU), priced at RM 398,800 (recommended OTR price without insurance).

The 530i goes for about �47,450 and �50,000 for the four-wheel xDrive version in Germany. That's about RM224,725 and RM236,800 respectively (as of today).

The same model costs about �40,120 in the UK - approx. RM224,205.

So comparing with home country prices, that a difference of nearly RM174000. Even with all the taxes, it does not add up.

Note that for CBUs import duty = 30% for CBUS (on Factory price)
Excise duty (1,998cc) = 80%
Sales Tax = 10%

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.

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.