Car prices dip 16pct since 2013

 |Apr 4, 2018

KUALA LUMPUR: Car prices dropped by an average of 16.38 per cent from 2013 to last February, the Dewan Negara was told yesterday.

Deputy International Trade and Industry Minister Datuk Ahmad Maslan said last year, car prices had dropped by 0.52 per cent.

“In 2016, however, car prices rose by 2.13 per cent due to the depreciation of the ringgit. During the same year, the overall drop in car prices stood at only 12.55 per cent,” he said when replying to a question from Senator Yong Wui Chung.

Yong had wanted to know whether the targeted 30 per cent reduction in car prices, as promised by the government five years ago, was achieved.

Ahmad said the prices of several car models had been reduced in stages from 2013 to 2017, including Proton Exora 1.6 (4.7 per cent reduction); Perodua Alza 1.5 (11.3 per cent), Perodua Myvi 1.3 (19.4 per cent), Mazda CX-5 (6.6 per cent) and Honda Jazz (19.3 per cent).

Ahmad said among the challenges faced by the government to achieve the target was the decline in the value of the ringgit, market uncertainties, and high prices of completely knocked-down (CKD) parts and transport.

He said car prices were not set by the government but were determined by the manufacturers and assemblers.

“The government will continue to discuss with the car manufacturers to ensure affordable prices for cars.

“Some companies are able to reduce car prices through their marketing strategies, including the introduction of new models and shifting operations locally,” he said. – Bernama