KUALA LUMPUR: The government is confident that the car price reduction target of 20 per cent by the end of 2017 can be achieved, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said.

He said the average price of all models and variants of cars in the country had dropped by 12 per cent since 2013.

"In 2013, the average price of cars dropped by five per cent, and last year, it further decreased by seven per cent, benefitting 72.5 per cent of buyers," he told a press conference during the National Automotive Policy (NAP) 2014 update here today.

The minister said the comparison were between new and previous on-the-road prices.

On the NAP, he reiterated that the key objective of the policy is to transform Malaysia into the Asean energy-efficient vehicle (EEV) hub by 2020.

"Other objectives are developing research and development capabilities for right-hand drive vehicles and related technologies such as fuel efficiency, light material, telematics, tooling and component design," he said.

Citing examples of car price reduction, he said Perodua slashed Myvi prices by 11 per cent, Proton by 13 per cent for Proton Saga, and Honda by 17 per cent for 'Jazz'. - Bernama