Proton complains of dumping<\/p>\n
Agence France-Presse, Kuala Lumpur<\/p>\n
Malaysian national carmaker Proton has complained that foreign
\ncars are being "dumped" in the domestic market at below their
\ntrue value, amid a slump in national car sales, a report said on
\nWednesday.<\/p>\n
Proton's chief executive Mahaleel Ariff was quoted by the
\nBernama news agency as saying that such "product dumping will
\naffect the market."<\/p>\n
He did not elaborate on his remarks but the Proton Edgar
\nDealers' Association (PEDA), which groups national car dealers,
\nsaid some imported cars were being sold in Malaysia at 20-50
\npercent below their true value.<\/p>\n
PEDA president Wan Ahmad Sepwan Wan Abdul Rahman told Bernama
\nhe had received information that the cost, insurance and
\ntransport of some Korean-made cars were under-declared in order
\nto secure a lower price tag.<\/p>\n
"With such a declaration, a lower tax is imposed and this
\nenables the distributor to give discounts to customers," he said.<\/p>\n
Deputy Prime Minister Najib Razak said over the weekend the
\ngovernment would give serious attention to the issue of dumping
\nby foreign carmakers in Malaysia because it could lead to
\nunhealthy competition.<\/p>\n
Malaysia's top two state-backed national carmakers, Proton and
\nPerodua, jointly control more than 70 percent of the domestic
\nauto market.<\/p>\n
However, they face increasing pressure from Japanese and
\nKorean carmakers as the auto market gradually liberalizes under a
\nregional free trade pact.<\/p>\n
Last year, Proton's market share dropped to 44 percent from 48
\npercent in 2003, while Perodua's share dropped to 30 percent from
\n35 percent.<\/p>\n
The government, which has been pushing national carmakers to
\nboost their competitiveness, earlier this week said current
\nexport levels were unsatisfactory and urged them to take steps to
\nimprove sales abroad.<\/p>\n
Deputy trade minister Ahmad Husni Mohamad Hanadzlah told
\nparliament that Proton's exports accounted for only 6.1 percent
\nof its total production while Perodua's accounted for only 1.7
\npercent.<\/p>\n
Proton exported 10,916 units in 2004, compared with its
\nproduction of 179,700 units while Perodua exported 2,180 out of
\n125,820 units.<\/p>\n
Separately, total vehicle sales in February rose 20.4 percent
\nyear-on-year to 36,904 units as customers rushed to buy in
\nanticipation of higher car prices under a new tax regime, Bernama
\nquoted the Malaysian Automotive Association as saying.<\/p>\n
Of the total, 61 percent or 22,419 units were national
\npassenger cars and commercial vehicles, while the remaining
\n14,485 units were non-national cars, it said.<\/p>\n
The association said the uptrend in sales was expected to
\ncontinue into March, as market sentiment and consumer confidence
\nremained strong.<\/p>",
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