We have repeatedly said over the past year that the new car selling price in Malaysia will drop soon after launch
The drop in new car prices across Malaysia which continues to be driven by heavy cash rebates, official MSRP reductions and early-bird discounts is not an accident. It is the result of a major market correction and price war. So what are the causes and how buyers will benefit?
The Arrival Of Chinese Automakers
The single biggest catalyst has been the rapid entry of Chinese brands (BYD, Chery, MG, GAC, GWM, Jetour, Zeekr). They entered the Malaysian market offering feature-packed, high-tech vehicles both EVs and ICE/Hybrids at aggressively hard to ignore price points. To capture rapid market share, these brands normalised giving huge cash rebates, free wallbox chargers (with EVs), and extended warranties right at launch.
Retaliation From Legacy Brands
Japanese, Korean and European auto manufacturers with long established showrooms (Honda, Mazda, Toyota, Mercedes-Benz, VW, BMW, Kia and Hyundai) can no longer rely on brand loyalty alone. To now have to defend their market share.
Toyota for the very first time in Malaysian history is giving discounts. Mazda have reduced prices across models like the CX-5, CX-30, and CX-80. Honda has introduced straight price reductions and cash rebates across the City, HR-V, and CR-V. Meanwhile, Kia, BMW, Benz and Hyundai repeatedly lowered prices to maintain an edge over incoming EV rivals.
The hidden trade-off has been troubling. While buyers enjoy lower selling prices today, these heavy new-car discounts have caused used car resale values to plummet. Buyers looking to trade in a 3 to 7-year-old cars are finding lower trade-in offers than expected, making cash rebates on the new purchase almost essential just to bridge the loan gap.
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Now available from RM178,888 or drive the SANTA FE home with monthly in from just RM1,888/month*. High trade-in value when you purchase with this dealer!
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*Terms and conditions apply.
