Car Price in Malaysia to Reduce More 2014 & 2015

car-price-reduction-2014

Car price in Malaysia will be further reduced in 2014 and 2015. Another 5% of reduction can be achieved this year.

PRICES of 29 car models from 11 brands in the country dropped between three and 17 per cent last year, and consumers can expect further reductions this year.

The 29 models, spawning 58 variants, accounted for 344,456 units, or a 60 per cent share, of the total 576,657 passenger cars sold last year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Overall, the average car price reduction stood at 4.97 per cent last year, which more or less matched the government’s target of five per cent.

Mustapa is confident that another five per cent price reduction would be achieved this year.

“We are confident that we can meet the five per cent (price reduction) target this year, according to the timeline under the National Automotive Policy, until 2017,” he said, adding that the targeted total industry volume of 670,000 units of passenger cars and commercial vehicles for 2014 is also achievable.

Mustapa was speaking after visiting the New Straits Times Press (M) Bhd’s newspaper editorial operations at Balai Berita, here, with senior officials from the various agencies under his ministry.

He said so far this year, five new models, including Perodua Alza and MyVi, and Proton Exora, had been launched with lower price tags.

“Together with the previous models (from 2013), these models have captured a market share of 56 per cent,” he said.

This is equivalent to 120,373 units of the total 215,098 passenger cars sold during the first four months.

Perodua MyVi, Malaysia’s top-selling model, saw a three per cent reduction in price last year, before easing further by six per cent this year.
“(The MyVi) prices have come down by nine per cent overall, which is a steep reduction, as we were expecting an industry-average of five per cent reduction per annum,” Mustapa said.

He added that car buyers can expect prices to be more competitive for those models that are yet to be launched.

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