Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost

Hans · Jun 23, 2022 04:13 PM

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 01

Mercedes-Benz Malaysia (MBM) is committed to maintaining the competitive price points for most of its models, especially its core locally assembled models like the A-Class Sedan, GLA, C-Class, GLC, GLC Coupe, E-Class, GLE, and S-Class.

This will hold true for the near-term, despite a sharp rise in materials and logistics cost as well as the weakening Ringgit.

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 02

“For sure we are also affected by the cost of raw materials increasing globally, but fortunately as an organization, we are very well hedged at the moment. Within the current scope, I think we are able to maintain our price points. Of course we will continuously face rising cost when it comes to raw materials and we have to continuously evaluate that – are we still in the right pricing bands? – but we are comfortable at this stage in time to maintain price points,” said CEO Sagree Sardien.

She also added that MBM is confident that its current outlook will still be valid for another 6 months, barring any unforeseen extreme circumstances.

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 01

Mercedes-Benz Malaysia (MBM) is speaking in the context of its own prices, excluding resumption of SST. Of course, once SST resumes on 1-July, prices will be revised upwards but that’s a tax related matter and the extra money paid by customers don’t go to MBM.

What is not said however is that although prices most Mercedes-Benz models will be more or less maintained (SST resumption aside), there could be some adjustments in specifications, especially when a new variant / model is introduced.

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 02

“Of course with every new launch that comes, we continuously evaluate this but we would like to keep a very stable platform to our customers,” she said.

Sardien also said that ranking at the very top of MBM’s priority now is to fulfill its outstanding orders, which has been building up due to the worldwide shortage in automotive parts, especially semiconductor-related ones.

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 03

“So our first priority right now is to fulfill the order banks, maintain the price points within the constraints that we have, like the SST resumption that has recently come up. We should be in a favourable position but you never know what’s the economic position and the prices that can go up, it can fundamentally change in a month or so, hence the reason I say we have to continuously evaluate this,” said Sardien.

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 04

CEO Sardien said the above at the sidelines of the launch of Hap Seng Star’s RM 99 million 7-storey high Mercedes-Benz Autohaus in Setia Alam, which also hosted the launch of the CKD Mercedes-Benz GLC 300e Coupe.

Also readHap Seng Star opens RM 99 million Mercedes-Benz Autohaus in Setia Alam

Mercedes-Benz Malaysia: SST aside, no further price hikes despite weak RM, increase in materials and logistics cost 05

Prices for the locally-assembled plug-in hybrid sloping roofline SUV-coupe starts from RM 374,073 without SST (valid until 30-June), and RM 398,888 with SST.

Also readThis CKD Mercedes-Benz GLC 300e Coupe (C253) is a RM 374k PHEV that makes 320 PS

Hans

Head of Content

Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.

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