IATO - SAE Indonesia

THE Malay Car Importers and Dealers Association (Pekema), a group of more than 200 firms, says sales of luxury cars by its members remain stable despite the soft car market.

Pekema also said it had proposed that a minimum of 25,000 open APs (approved permits) be given to Bumiputera firms annually, with each receiving no less than 200 units.

The proposal is part of a Pekema memorandum explaining the current situation faced by Bumiputera entrepreneurs in the automotive sector submitted to the Government recently.

THE Malay Car Importers and Dealers Association (Pekema), a group of more than 200 firms, says sales of luxury cars by its members remain stable despite the soft car market.

Pekema also said it had proposed that a minimum of 25,000 open APs (approved permits) be given to Bumiputera firms annually, with each receiving no less than 200 units.

The proposal is part of a Pekema memorandum explaining the current situation faced by Bumiputera entrepreneurs in the automotive sector submitted to the Government recently.

"In the memorandum, we have also proposed that the policy on AP be implemented in consideration of the investment and commitment made by the companies to the employees and finances as well as basic and technical amenities," Pekema vice-president Mohamed Jusoh said in a statement to Business Times.

Mohamed said there are currently 82 open AP companies - including six which received extra AP allocations recently - with a quota of 17,000 out of total 52,138 APs given out by the Government. Of the 82, about 40 per cent got between 13 and 100 units a year.

"Only three brands are held by Bumiputera firms - Fiat, Jaguar and Lamborghini - but they collectively receive 300 APs a year.

"Bumiputera franchise companies and independent importers are dealing in an unfair market because we are imposed with various import restrictions. We are not allowed to import car brands which have been franchised and given less APs, among others," he said.

Under the new National Automotive Policy announced on March 22 last year, APs will be phased out in stages and completely abolished in 2010.

On sales by Pekema members, Mohamed said the performance was favourable although the numbers were not as good as in past years.

He said Pekema members are not severely affected because they deal in a niche segment - selling new and used luxury vehicles worth more than RM120,000 each.

Mohamed was commenting on the Malaysian Automotive Association's statement that new cars sales dropped 14 per cent year-on-year in February. - By Zuraimi Abdullah