AFTA: The upcoming challenges to the Malaysian automotive

AFTA: The upcoming challenges to the Malayan self-propelling effort *Introduction Perusahaan Otomobil Nasional Berhad (Proton) was incorporated on may 7, 1983 to manufacture, assemble and sell motor vehicles and related to products including accessories, spare move and other components. Proton has an extensive market overlap in Malaysia and sells its products astray throughout the sphere. The home market provided it with the undeniable volume and viability for its success. In the 1990s they have acquired intimately 65percent of the total sales in Malaysia. This was followed Perodua which is the flash national car producer. They have conquered about 25percent of the Malaysian automotive market from 1995. Foreign automobile giants could non penetrate the Malaysian market because of the high tariffs and import task imposed on foreign vehicles. However it is going to be a all in all different drool once AFTA was waxy implemented on the automobile industry. ASEAN libera te Trade Area (AFTA) was established in the fourth ASEAN hint held in Singapore in January 1992. AFTA was initiated in order to levy intra ASEAN trade, investments and economic developments in this region. Through AFTA, the tariffs should be reduced to to a lower place 5percent by 2002 and other non-tariff barriers are to be eliminated among the ASEAN countries. ASEAN car industry falls in these schemes too.

However Malaysia has communicate a token(prenominal) two-year exemption from AFTA, which is due to number into affect in 2003,for its car industry and selected agricultural products. It says it wants to ta ke a puddle sure its industries have recove! red from the effects of the economic downturn before throwing open its markets. Foreign car giants however motor along that ASEAN is a strategic automotive market. Currently American and Nipponese auto companies have invested a lot in this region for auto industry. Further new car maker oddly from Europe has shown interest to... If you want to get a full essay, order it on our website: BestEssayCheap.com

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