The Government, in line with their election manifestos which they pledged upon since taking seat after the 13th General Election, says their commitment to ensure that prices of imported cars will be reduced by up to 30% is well on track, according to a report by The Star.
The plan to reduce car prices over a five-year period is also part of what forms the 2014 National Automotive Policy (NAP), and according to the CEO of the Malaysian Automotive Institute (MAI) Mohamad Madani Sahari, last year saw an average drop of 4.9 percent in car prices, whereas several vehicles recorded a more significant decrease this year, between 9 to 29 percent.
Debates on whether or not the Government is staying true to their manifesto is wide and rampant, and a large portion of this dispute is comprised of people wanting immediate results. In this case, an overnight reduction of car prices.
International Trade and Industry’s Deputy Minister, Datuk Hamim Samuri addressed the concerns by saying that the best way to go about reducing car prices is if it’s done gradually and over a few years’ period. This way, the used car industry will not suffer from the reduced profit margin.
“If car prices are to be drastically reduced, then consumers will turn their focus to buying a new car instead,” Datuk Hamim added.
As for the implementation of GST, Madani said most car prices should drop by 1 to 2 percent. MAI earlier revised their 2014 Total Industry Volume (TIV) to 670,000 units this year, and they are expecting vehicle sales to hit the 700,000 mark next year.
Luxury grey import vehicles on the other hand, will not benefit from the price reduction.