Mustapa says, car prices have dropped by 17.9% since 2013

Kuala Lumpur: Car prices in the country have dropped by 17.9 percent for the past two years until October 2015, the International Trade and Industry Minister, Datuk Mustapa Mohamed informed Bernama reports.

Minister Mustapa Mohamed said the government remained committed to reducing car prices as pledged in the Barisan Nasional's manifesto during the 13th general election in 2013.

"BN has promised to continue to reduce vehicle prices between 20 to 30 percent within five years, and for the past two years, we managed to achieve an average reduction of 17.9 percent," he said when winding up debate on the Supply Bill 2016.

Read Also: Mitsubishi Motors Malaysia to hike vehicle prices

However, he did not deny that several automotive companies either did not reduce their car prices or were forced to revise them due to pressure from the weakening ringgit.

In this case, he said if the Trans-Pacific Partnership Agreement (TPPA) was signed, import duties on completely built units from the US will be reduced to zero percent.

"In 12 years' time, the import duties of US vehicles, currently at 30 percent, will be gradually reduced to zero percent."

"In addition, Japan and Australia, through free trade agreements, ratified before the TPP Agreement, will be allowed to bring in cars without paying import duties from Jan 1 next year," he said.

Read Also: Hike in car prices is not confirmed yet, says MAI

Mustapa is confident that if the TPP Agreement were signed, national car companies like Toyota would continue to stay competitive and change their business strategy by producing models at more competitive prices.

There are few companies which has already raised the prices of vehicles which will come in effect in 2016, including Toyota and Lexus which has raised bars by 4-16%, Honda by 2-3% and Mitsubishi by 2-7%. While, there are brands on the other side, which has announced that it will maintain its prices in 2016 and will not make it more complicated for the interested buyers.

Read Also: Honda Malaysia hints for car prices increase in 2016

Image Courtsey: Malaysiakini.com