KUALA LUMPUR: The Government's plan to reduce car prices gradually by
between 20% and 30% within the next five years is the best mechanism
for consumers and the automotive industry without disrupting the
ecosystem, said an industry expert.
“Five years is the right
timing to reduce car prices because a sudden reduction would impact the
second-hand car industry,” Malaysia Automotive Institute chief executive officer Madani Sahari said.
He
said although the car price cut plan had recently received wide
publicity, the exercise itself started last year with some popular car
brands reducing their car prices by 2% to 5%.
“The Government has
had the car price reduction plan in the yet-to-be-announced National
Automotive Policy since 2011 and had started to implement it since last
year in a silent way,” he said on the sidelines of a forum on “Business
Time Insight The National Automotive Policy” here yesterday.
On Tuesday, Prime Minister Datuk Seri Najib Tun Razak reiterated the Government's commitment to gradually reduce car prices by 20% to 30% within the next five years.
