With Malaysia’s exemption of import and excise duties on hybrid and electric cars expiring at the end of this year, a National Automotive Policy update is widely expected, and industry experts are predicting that a New Policy Could Make Malaysia The Next Big EV Market.
The infrastructure of Malaysia is one of the most developed in Asia and it has had one of the best economic records in the region, with GDP growing an average 6.5 per cent annually, making it the third largest economy in ASEAN and the 29th largest in the world. The country has shifted towards an industrial/manufacturing based economy and aims to attain developed country status in 2018 – most economists agree that it has all the right ingredients to achieve that.
Automotive manufacturing is a key part of Malaysia’s economic development plans, and in particular the manufacture and development of low emissions vehicles that will also help it to realise it’s COP15 commitment to reduce its CO2 emission’s to 40 per cent by the year 2020.
According to regional press: Datuk Takashi Hibi, Deputy Chairman of UMW Toyota Motor Sdn Bhd, says [Toyota] are considering the possibility of assembling hybrid vehicles in Malaysia – The company (more…)
According to Malaysian newspaper The Star Online, prices of hybrid cars may go up if the Government decide not to extend the exemption of import and excise duties on hybrid cars, that expires at the end of the year.
In the same week UK business newspaper the FT is reporting “Carmakers flock to new southeast Asian growth frontier“, in which case; they should be looking at manufacturing or part-completing their vehicles locally: An industry insider believes that the current exemption will be extended for vehicles which are partly manufactured/finished in Malaysia, but not for pure imports, and both Honda and Toyota are preparing for a drop in sales of their imported hybrid models.
Import duties have been high in Malaysia for many years as part of a strategy to support local automotive manufacturers such as Perodua, and Proton. Foreign vehicles are seen as highly desirable, status-products due to the high cost compared to domestic vehicles – the exemption has so far been effective in boosting sales of hybrids in the country, because it has made a number of popular Japanese vehicles affordable to consumers, which also happen to be fuel efficient (more…)