The government’s plan to reduce car prices gradually by between 20 and 30 per cent within the next five years is the best mechanism for consumers and the automotive industry without disrupting the ecosystem, says an industry expert. Malaysia Automotive Institute (MAI) chief executive officer Madani Sahari said although the car price cut plan has recently received wide publicity, the exercise itself started last year with some popular car brands reducing their car prices by 2-5 per cent. On Tuesday, Prime Minister Datuk Seri Najib Tun Razak reiterated the government’s commitment to gradually reduce car prices by 20-30 per cent within the next five years. Madani said the car price reduction does not involve a cut in the excise duties, as Malaysian companies in reality are only paying about 40 per cent of excise duties, even though it hovers at around 65-105 per cent depending on the segment, due to value-added activities undertaken in the country. – Bernama