Electricity tariff hike affected car prices – manufacturers had to pass some of the cost to consumers.
The recent automotive annual review by the Malaysian Automotive Association (MAA) brought to light some interesting facts. In summary, 2022 was the best year ever for car sales, and they predict that 2022 will see a slowdown in car purchases due to fears of recession.
One of the other factors that might slow down car sales in 2023 is the hike in electricity tariff, because indirectly, it affected car prices. Remember when some auto manufactures announced an increase in prices for their cars earlier this year? well, this is one of the reasons why they had to do so.
According to UMW Toyota Motor’s Mr. Ravindran K., who is currently the MAA Council’s Vice-President for Trade, “when electricity prices go up, we will take half of the cost, and the other half will be passed to the consumers.”
“We (auto manufacturers) will try as best as we can to hold as much as possible, but some will have to be passed to consumers,” said Ravindran.
It seems the revision of the electricity tariff for industrial users (medium- and high-voltage users) at the end of last year is the main culprit for the increased prices of cars.