Naza Auto in wait-and-see mode but does not rule out price hikes

PETALING JAYA: Naza Automotive Group (Naza Auto) does not rule out the possibility of increasing prices in the future, following the increase in service tax.

Naza Auto Group CEO Mohd Rizal Jailan said seeing that the service tax was only implemented last week, it will adopt the “wait-and-see” approach and adjust accordingly to the situation.

“We are still evaluating (whether to increase the prices) because as much as possible, we do not want our customers to be affected,” he said during the 2024 Maserati GranTurismo launch ceremony today.

While the group does not have any immediate plans to increase its car prices, Mohd Rizal said he does not guarantee it will maintain prices as various factors need to be considered before any decision is made.

“Vehicle pricing is not only affected by the service tax as there are other factors involved, such as foreign exchange rates and so on. Obviously, we are going to sit down and look into all factors but Naza intends to (do our best) not to burden our customers.

“The possibility is always there but by our approach, we look into things that we can control such as operational costs to ensure that as much as possible, prices are not being affected.

“I cannot elaborate further, as we are still evaluating on this. When we have a clearer picture, we will look at the cost structure (as a whole) to make a decision but so far, we are putting effort to look into all things within our control (to exercise) cost-efficiency,” he added.

Mohd Rizal also said his team is focused on looking at various cost-saving measures, including supply chain and predelivery inspection costs, in order to offer competitive pricing to customers.

Asked about the high-value goods tax which is to be implemented on May 1, he declined to comment as it has yet to be gazetted by the government.

Meanwhile, Mohd Rizal noted that the general forecast on new motor vehicle sales or total industry volume is expected to decline this year, despite achieving high record sales in 2023.

“For our product offerings, we believe that the challenges that we are facing is more on the ringgit (and the foreign exchange rate) and how we approach our customers.

“That will be the significant factor for our success this year and that's why we are focusing on the customer experience as with these type of products, the customer experience plays a very vital part in determining the success of the brands,” he said.

Naza Auto is the sole distributor and importer of the Maserati brand in Malaysia.