New Car Prices in Malaysia, Following Abolishment of Goods & Service Tax

  • Volkswagen Malaysia first to announce new prices of cars
  • Proton, Perodua, Nissan and Subaru announce price protection schemes

With the recent announcement of the Goods & Service Tax (GST) to be zero-rated come 1 June 2018, Volkswagen Malaysia has taken the lead to announce the new prices for their cars. This will take effect on the first day of June.

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“This period in time is a windfall for Malaysians, and so I would like to urge those considering our products to grab this opportunity as there is no better time to own a Volkswagen.

“Customer peace of mind is always a priority for us, and we want to be able to provide this during the transition period until the implementation of the SST. We want our customers to benefit from the revised prices, and enjoy our ongoing promotions,” said Erik Winter, Managing Director of VPCM.

Malaysia’s national automaker Proton, as well as Nissan and Subaru, have announced price protection schemes for their customers.

Proton cars sold and registered from 16 to 31 May 2018 will include service vouchers equivalent in value to the difference between the current and new prices of the car after the GST is zero-rated.

“Proton is supportive of the new Malaysian government’s efforts to reduce the cost of living for the people. Despite zero-rated GST only coming into effect on June 1, we have decided to reward our customers immediately as a token of gratitude for their support and in the spirit of the holy month of Ramadan,” said Proton vice president of sales and marketing, Abdul Rashid Musa.

Meanwhile, TC Subaru Sdn Bhd, who are the exclusive distributor of Subaru vehicles in Malaysia, stated that unregistered as well as new bookings of all Subaru vehicle models will be price-protected from 11 May till 18 August 2018, which is almost 100 days.

Should there be price hikes before registration of any booked Subaru cars due to changes in the tax regime, TC Subaru will honour the original, lower price. However, if prices drop, TC Subaru customers will get service vouchers equal in value to the price difference (up to a limit of RM3,000).

“For example, should a vehicle’s price reduce by RM1,000 after the change in applicable taxes, it shall be traded into a service voucher worth RM1,000. For unregistered bookings, should later prevailing prices drop at registration, the booking price will be adjusted correspondingly i.e if the booking price was RM100,000 and the prevailing price at registration is RM99,000, the lower price of RM99,000 will apply,” stated TC Subaru.

Previous sales tax (left) on a car versus the current goods and services tax (GST, right). Credit –

Sales and Marketing Director of Edaran Tan Chong Motor Sdn Bhd (ETCM), Christopher Tan, said prices of passenger cars may see an increase if SST is re-introduced at the former rate of 10%.

“Almost all car brands, following the move from SST to 6% GST three years ago, saw a slight drop in prices. So, if the SST is implemented at the old rate of 10%, logically there will be an increase in prices. So, perhaps now would be the better time to to buy cars,” said Tan during the launch of the Nissan Serena 2.0L S-Hybrid on Monday.

However, Tan said ETCM has a price protection scheme whereby beginning this month, Nissan car buyers will get a refund for the difference in prices, if the prices for their new vehicle drops after GST is abolished.

“On the other hand, if car prices go up after GST is abolished, then those who buy their cars now will not lose,” said Tan.

K. Ravindran, President of UMW Toyota Motor Sdn Bhd, has assured all its customers that any relief and benefit from the new tax structure will be fully passed on to its customers and any price revision will be considered in the best interest of its customers.

As for Perodua, it will fully reimburse the GST to customers who purchase a new Perodua vehicle, service their Perodua vehicle or buy parts between 18 and 31 May 2018, ahead of the removal of GST.

“Perodua will fully reimburse our valued customers the GST amount in cash upon registration or servicing of their vehicles as well as parts purchased. This GST rebate initiative represents our commitment to customers to always place them first in everything we do,” Perodua Sales Sdn Bhd Managing Director YBhg Dato’ Dr Zahari Husin said.

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