KUALA LUMPUR (Jan 30): The Ministry of International Trade and Industry (MITI) is confident that the average car price reduction target of 20% by end-2017 can be achieved.
Last year, the average car price has dropped 7.01% across all models and variants introduced here, MITI minister Datuk Seri Mustapa Mohamed told reporters today after presenting the achievement and updates of the implementation of the NAP 2014.
"We think car prices can be reduced by 20%, if not 30%, which will be a bonus," he said.
Mustapa also mentioned that the study conducted on the controversial approved permit (AP) to import foreign cars will be finalised soon.
He is expected to make an announcement on the matter later.
Meanwhile, the tax exemption period for hybrid CKD vehicles, which will be ending this year as stipulated under the National Automotive Policy (NAP) 2014, will not be extended.
"No, for the moment there is no intention [to extend the tax exemption]," Mustapa said when asked.
He also commented that the weaker ringgit will have some impact on CKD (completely knocked down) vehicles, given that the weaker currency would translate to higher costs.
Hence, “there may be some pressure on imports”, he said.
Also at the briefing was Malaysian Automotive Institute CEO M Madani Sahari, who said that customised incentives will be introduced post-2015, which may still include tax exemption for hybrid CKDs.
"The customised incentives can be anything including tax exemption. The incentives will be given depending on the merit of each business proposal [of the automotive player]," said Madani.
On fuel, the Euro 4 standard for RON 97 petrol will be introduced nationwide in September 2015, while the same standard for ROM 95 will be implemented in 2018, said Mustapa.
Mustapa added that the Euro 5 diesel will be introduced in other states this year. Currently, the Euro 5 diesel is being sold only at 12 fuel stations in Johor.
The states that will introduce Euro 5 diesel this year are Selangor, Penang and the East coast states, said Madani.