CPR1 examples

At the just-concluded National Automotive Policy (NAP 2014) status update, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed claimed that on average, car prices dropped 7.01% across all models and variants introduced last year, compared to a 4.97% reduction in 2013.

He said that the lower prices benefitted some 72.5% of Malaysian car buyers in 2014, and that the aim is to gradually reach an average 20% reduction by end-2017.

The slide above undoubtedly raises a few eyebrows – we recognise the Mazda CX-5‘s RM15k drop as a result of local assembly (CKD), but we’re curious as to how the Honda Jazz‘s RM15,100 drop is derived. However, the previous-gen CKD Jazz petrol was priced at RM74,800, and its Hybrid counterpart RM89,900 – the difference is exactly RM15,100…

CPR1

With regards to the Perodua Myvi, the 2%, 6% and 3% drops probably represent the 2011 Premium to 2013 SE, down to 2014 XT and finally to the 2015 facelift. The Proton Saga‘s 13% drop of RM4,923 is likely derived from the difference between the 2011 Saga FLX Standard and the 2013 Saga SV.

Under NAP 2014’s Car Price Reduction Framework, MITI expects car prices to go down through increased competition brought about by the liberalisation of the industry, rather than the reduction or abolishment of excise duties.