August 30, 2013
Car prices will be reduced gradually until 2017
KUALA LUMPUR: Car prices will be reduced gradually until 2017, says International
Trade and Industry Minister Datuk Seri Mustapa Mohamed.
As outlined in the 13th General Election Barisan Nasional Manifesto, Mustapa said
the government had promised to trim car prices between 20% and 30% over five years.
"In fact, since October last year, the price of 10 popular models in the country
have come down an average 7.3 per cent," he told reporters after attending the ministry's monthly gathering, the
first after Mustapa was re-appointed to the Cabinet.
He said the price reduction was part of the market process as a result of more
efficient and competitive players in the automotive industry.
Mustapa said the price reduction exercise should be done in an orderly manner so
as not to affect the industry's growth and existing jobs in the automotive and related industries.
"As such, we have had discussions with automotive manufacturers and they are aware
of ongoing negotiations to conclude a free trade agreement which would be implemented soon," he said.
Mustapa also said industry players must now be ready to step up their
competitiveness edge in tandem with the industry which was becoming more competitive in Malaysia and
Besides bringing down car prices, the government was also reducing traffic
congestion by setting up a more efficient transport system in the country, he added.