Car prices on average may be slashed by between 1-3% after the Goods and Services Tax (GST) is implemented on April 1, 2015 if the Malaysia Automotive Institute (MAI) is correct.

According to Bernama, MAI CEO Madani Sahari said that its simulations showed there should be a slight price reduction for most models, including imported cars.

“Our target for the total industry volume (TIV) next year is 700,000 units as car prices will be more competitive. As for this year, we are forecasting a TIV of 670,000 units,” he said after the Altair Annual Technology Conference 2014.

Madani added that there is no point in holding out on buying a car before GST is implemented, as there will be little impact on new car prices. However, he claimed the institute expects the values of used cars to see a larger reduction, by an average of between 5-10% every year.