SST cut extension a boon for CKD 2021 Mercedes-Benz GLE, 3 more launches next

Mercedes-Benz Malaysia (MBM) is in a strong position to capitalize on the sales and services tax (SST) cut extension.

Originally meant to expire on 30-June 2021, barely a month after the price deducted, locally-assembled (CKD) 2021 Mercedes-Benz GLE 450 was launched, the extension until 31-December 2021 will allow MBM to fulfill more of the orders collected.

"We welcome the government's decision to extend the sales tax exemption until the end of this year. Last year we saw tangible benefits from the tax incentive relief introduced by the government, helping the industry recover faster and drive demand,” said Dr. Claus Weidner, President and CEO of Mercedes-Benz Malaysia, in an email to WapCar.my.

Assembled at Mercedes-Benz Malaysia’s vehicle assembly plant in Pekan, the GLE 450 is eligible for full SST exemption.

The BMW X5-rivalling SUV is priced at RM 475,501 without SST, more than RM 110k cheaper than the previous imported from USA (CBU) model, which was last sold at RM 584,720, with SST.

For comparison, the plug-in hybrid BMW X5 xDrive45e M Sport sells for RM 439,443, without SST. The GLE 450 doesn’t benefit from a plug-in hybrid drivetrain but it offers the superior utility of having 7 seats, versus the X5 45e’s five.

Also read: BMW X5's rival, CKD 2021 Mercedes-Benz GLE 450 launched, priced from RM 475k

After the GLE 450, we expect MBM to launch at least 3 more models this year, including a new Mercedes-Benz E-Class facelift, as well as locally-assembled variants of the GLA and A-Class Sedan.

Also read: Malaysia to launch CKD 2021 Mercedes-Benz A-Class Sedan, GLA, GLE - 5 new CKD models coming

The new E-Class needs to come soon as BMW Malaysia has just launched the refreshed 2021 BMW 5 Series LCI. 

Also read: New vs Old: 2021 G30 BMW 530i LCI – Changes where it matters

Meanwhile the CKD A-Class sedan, especially the A250, will offer a more powerful alternative to the CKD BMW 2 Series Gran Coupe (from RM 2113,67), which is only available in 218i form.

The CKD GLA will go up against the CKD BMW X1, which now starts from RM 208,368 for the entry sDrive 18i variant. 

Assuming that the lockdown doesn’t delay the Pekan plant’s setup as well as price approvals by the government any further, all these models should be launched within the SST exemption period.