PEKEMA - AP Holders RM100,000 Profit Claims Unsubstantiated, High Selling Price Due To High Cost!

The Youth Arm of the Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) has described the claims by certain parties that some Approval Permit holders (AP) are making profits of up to RM100,000 per electric vehicle (EV), especially Tesla, as unsubstantiated.

The Chief of the PEKEMA Youth Arm, Raja Petra Maruddin Raja Nordin, stated that the RM100,000 profit figure mentioned by various news sources is baseless and should not just take into account calculation based on the price they would potentially pay to purchase EVs in the vehicles country of origin. Various other factors should also be accounted for such as transportation, warranties, and companies operating costs.

He also mentioned that the profit margin taken by importers from the factory sticker price when reselling the vehicles is a normal industry practice.

"However, it should be remade clear that AP holders would have to bear risks such as market risk, infrastructure costs, and the responsibility to provide warranties and after-sales service on their own initiative. This is even so especially for brands that are yet to be available in Malaysia.

"All these are factors that need to be taken into consideration when determining the actual profit gained," he said.

Furthermore, Raja Petra also emphasised that as AP holders, they are not direct manufacturers like Tesla, which are able to determine and sell cars directly without going through the conventional distributors or third parties module.

"Raja Petra also stressed that Tesla is the only car manufacturer currently selling cars directly to customers. All other car brands adopt the conventional distributor module, even although some car manufacturers provide online configurations and financing."

He said that these factors result in additional costs that must be borne to ensure that the imported EVs are safe and comply with local standards.

Raja Petra also said that, "In this matter, we importers are pioneers and drivers of EV sales in Malaysia because without our support as AP holders, some EV brands might not have entered the Malaysian market.

"Therefore, the accusations that we are making substantial profits without any data or reference are unfair and an attempt to damage AP holders reputation and role in this industry," he emphasised.

Raja Petra also stressed that as AP holders they are constantly exposed to risks while operating, especially when importing EVs. Furthermore, several limiting factors, such as chip and battery shortages had also affected prices and caused fluctuations in the price of an EV that cannot be avoided.

Therefore, according to him PEKEMA hopes that all these baseless allegations needs to be viewed more rationally and the key focus should just just be on the profit numbers alone. As AP holders PEKEMA members had and will continue to play a crucial role in the automotive landscape by introducing more and more EVs to the Malaysian public, hence this efforts should be appreciated in aiding the growth of the industry overall.