Malaysians often complain that because of high taxes, they have pay some of the highest car prices in the world. There is some truth in that argument. Take for example an import and excise duty exempted Japan-made Toyota Prius, which starts at RM140,000 in Malaysia. A similarly equipped Prius sells for only around RM80,000 in the US and Japan.

In truth, the subject of high car prices is actually quite complicated and goes beyond just taxes. This post will attempt to explain to Malaysian car buyers on the mechanics behind vehicle pricing, and along the way debunk some myths.