Car prices will be reduced gradually until 2017

KUALA LUMPUR (Bernama)- 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
per cent and 30 per cent over five years.
"Infact, 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 abroad.
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. -BERNAMA