KUALA LUMPUR: Perodua hopes the Government will consider including special incentives for first-time national vehicle buyers in the upcoming Budget 2017.
President/chief executive officer Datuk Dr Aminar Rashid Salleh said the move is to further spur consumer spending. He said one way to do so is to reduce downpayment required.
"This will have a domino effect on the entire automotive ecosystem, as well as the financial and insurance industry, given the sluggish economy in the near term," he said.
Aminar mentioned that Perodua's specific wish list includes continuing with the current National Automotive Policy roadmap in liberalising the market. "However, it should be done on a staggered basis to ensure local vendors have sufficient time to improve competencies and capabilities to compete fairly. "This is also to ensure that investments of automotive players are not jeopardised," he said.
He said Perodua also hoped the Government would continue to support the local automotive industry with incentives in a similar way as developed countries such as Germany, South Korea, Japan and the United States have.
"This will encourage manufacturing activities, while improving vendors' and original equipment manufacturers' capabilities. At the same time, it helps promote exports within the automotive ecosystem.
"The Government should also consider loosening the procurement policy to allow Perodua to be included as an option for government bulk vehicle purchases.
"This will create greater options and value for the Government at a time when it needs to get the best value on items purchased," Aminar said.
He said a reduction in the overnight policy rate (OPR) would have a positive impact on the overall economy, as banks would reduce lending rates and spur spending.
"While we respect and support the central bank's stand on the lending guidelines, we also believe that all financial institutions should implement it on a case-to-case basis, rather than have a blanket rule," he added.
The other national car maker, Proton, also urged the Government to offer incentives such as those to spur research.
Proton deputy chief executive officer Datuk Radzaif Mohamed said he hoped the Government would take into consideration Proton’s status as an original equipment manufacturer (OEM) that has helped a lot to produce skilled local manpower for the industry.
The Budget 2017 will be tabled in Parliament on Oct 21.
