At today’s National Automotive Policy (NAP) 2014 status update, Minister of International Trade and Industry (MITI) Datuk Seri Mustapa Mohamed told the press that, as yet, there are no plans for the current import and excise duty exemptions for locally-assembled hybrid vehicles to be extended beyond December 2015.
Incentives for CBU hybrids (with a engine capacity limit of 2.0 litres) and EVs were terminated with the introduction of NAP 2014 early last year, but those for CKD vehicles (this time without an engine size cap) continued to be doled out, with an end date set for the end of this year.
This presents quite the conundrum – the previous-gen Honda Jazz Hybrid, Mercedes-Benz S 400 L Hybrid and E 300 BlueTEC Hybrid and Nissan Serena S-Hybrid are already being assembled here, while the Toyota Camry Hybrid and Honda City Hybrid and new Jazz Hybrid are expected to come in sometime later this year.
As such, the industry players who are already involved in this scheme will no doubt be looking for a meaningful return of their investment in the country. And while there is still time for an extension to be announced, such late notice would not give manufacturers enough room to plan out their product introductions, usually occurring about a year in advance.
One way we could see this pan out would be that the benefits for those who are already assembling hybrid vehicles in Malaysia would be grandfathered – meaning that the prices of those cars will remain the same even beyond 2015 – while the door would be closed for any new entries.
Another alternative would be that the incentives would remain open on a case-by-case basis, for example through the country’s Energy Efficient Vehicle (EEV) policy. Either way, the insecurity this development brings isn’t likely to sit well with the car manufacturers.
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its sickening to learn that gomen is breaking the promises everytime!!!
Obviously this is to protect the stupid and rubbish potong!!!
They also reject hybrid becos if cars are so fuel efficiency there are no more profit for petrol and no more corruptions to feed their families!!!
well, this is what Msia gomen do.
taking care of the cronies interests first before the rakyat!
No needed tax free for ckd, its not really tax free.
Just look back the Lexus ct200h cbu.
Tax free: 160k
Tax: 260k
Measured a 62% of price increased.
If we compared the global camry hybrid price at tax free should be
Tax free: 130k
Tax: 210k
Govt/miti/maa all are thonk there are smart be a LIAR to kencing the msia citizen with 9yrs loan, its 21century with reaching global info in few seconds via internet. Not like 80s or 90s without exp9sed to outside world.
At the end, we cannot blame others but ourselves as we accept it and not fight against price reduction programe.
Yes we all sohai to accept it. We volunteers to pay 100x tax upon vehicle purchase.
While Indon enjoy HRV at 65k and msian pay for 2x double 120k.
Can Madani from MAI explain why we are losing billions to Thailand every month and now, to even Philippines!
Malaysia was on its way to becoming the Detroit of Asia in the 90s. But the AP system cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.
Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
We lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that.
Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost. And today, PHilippines pulak are benefitting from our crony practices.
A word of caution to Madani and the idiots in MITI, Malaysia might even lose existing companies who are already CKDing in Malaysia. BMW, Mercedes, Nissan, Honda and Toyota might even close up their plants in Malaysia to open up in Thailand. Now Indonesia and Phillipines included
This is so worrisome. Despite Thailand having an unstable economy with riots and bombing, no stable government, yet car companies still prefer Thailand to Malaysia. Makes us wonder…..what is wrong with Malaysia?
Another stupid plan to protect Proton. Since Proton is developing EEV, thus it gets the incentive while other carmakers that are doing CKD Hybrid does not
I have been to Rayong – the auto manufacturing hub in TH. Seen Mazda, GM, Toyota, Honda plants there. MILEs and MILEs of cars lined up for shipment. As far as the eye could see!!! Not exaggerating. Recently BMW hust opened a plant in TH.
Imagine all of there are based in MY? As a Malaysian, I feel for the country! Billions of revenue lost! thousands of jobs lost!
Seriously we need to fight for change!!! How long can we afford to bleed like this?
When did the government ever realize their promise?
Low crime rate? high income? abolish AP?
Sendiri Cakap, Sendiri Syok!
Never unless they abolish Proton
Finally someone can see the trick. Proton hybrid become cheaper below RM100k price, but other brands keep above RM100K price.
But rakyat are smart, keep on avoiding Proton until low sales and forced to relocate to Bangladesh. Ah Beng new manager there with RM850 gaji minimum.
Proton Hybrid, you dare to buy??
It is a Proton man. Proton famous Proton-Murphy law: Whatever could break down guaranteed break down gao-gao!!
Actually Proton drivers are driving hybrids now: Poor build quality and terrible fuel consumption.
That cannot beat moving coffin T
If it breaks down you can repair
If one dies you can resurrect him?
I agree theres way too much T on the roads, and even more clueless T drivers
I hope those cars didnt loose control and bang into your house killing your whole family
I hope when you cross the roads none of those T cars loose control and bang you too
The people of Malaysia should not beg for clean air. To breathe clean air, it is our right. All over the world, governments are moving to hybrid to give their people cleaner air.
In Malaysia, government blackmails us to get clean air. One day tax incentive is on for hybrid, then another day, tax incentive is off for hybrid. 10 years ago, told us clean diesel is on its way. Now 2020 comes, they will say 2025 or 2030.
The Government of Malaysia blackmails its people for the right to breathe clean air.
The whole purpose of a government is to look after the well being of its rakyat and provide the rakyat security. That is the definition of a government. A government collects taxes from the rakyat, in return, they provide a safe, secure country for its tax paying rakyat.
In this case in Malaysia, Malaysians have been suffering with dirty fuel and higher emissions for over 15 years when all over the world they have upgraded their fuels to give their people cleaner air. They also promote cleaner hybrid engines to provide cleaner air and they give their rakyat cleaner petrol and diesels that emits very low Co2.
Don’t talk about cars now. Lets talk about the health of a nation. Because of the dirty petrol and diesel and not promoting hybrid cars, the air pollution is so hazardous to the rakyat, it is the result of countless of cases of lung infection, cancer and respitory illnesses. All our hospitals are full daily mainly because of respitory illnesses. Older people suffer most because of polution by the low grade fuel given by our government.
Have you seen your old mother and father pant and gasp for air?
That is because the government of Malaysia has failed its rakyat giving them cleaner air to breathe. They don’t care for the 30 million people suffer and the environment. They want you to use more dirty petrol and fuel and pollute the environment.
The Environment Ministry and the Minister has no balls. His job is to ensure a cleaner environment.
All over the world, the oil companies are so scared of the governments and they comply with all the Euro5 regulations imposed by their caring governments. But not in Malaysia.
Government does not care at all about the Environment at all. Besides Hybrids, government must ensure all companies come out with Hybrids to promote lesser emissions into the environment.
The Government of Malaysia has failed its rakyat in giving a clean environment, safe and secure country for the rakyat to live in. The government takes the tax payers money in vain here. It is not doing it job. It is as bad as some African war torn country. Don’t be fooled just because Malaysia has no war and is supposedly peaceful. The dirty air and environment itself is war on your lungs and respitory system and this war is far worse than your physical war of guns, mortars and tanks. It is a silent killer. The dirty fumes emitted from vehicles because of the dirty fuel and non hybrid promotion kills more people per annum than any war will.
Our government has time to play a chess game with people’s lives and health in Malaysia, gambling their lives away with their lalang attitude towards hybrid tax incentives.
People are getting even more creative with their complaints now lol
Their own health is the government’s responsibility now
I wonder next time if they cannot have babies its the government fault too and they need to be responsible by sending some capable officer to have babies with your wife too?
Seriously tho the government did not point a gun to your head to continue staying here
If you think the environment here is killing you and your beloved family, you should really consider migrating
Your voice will do little here and further more you’d think changes can be made with postings on the internet?
Might as well save your breath and effort to fill in migration forms to your chosen country
As long as Proton’s here, we cannot get clean air
MAI/MAA/MITI or Cronies always ask Rakyat’s to lower the foods and goods price…
BUT yet they only knew how to add taxes and implanted new ways of increase price for their own !!!
Bolehland that manage by those so-called Cronies Rights ???
Deym…
They think assembling car is like assembling lego is it with this kind of uncertainties.
Manufacturers need to spend a lot to build production line and these kind of incentives only last for a year???
Nonsense.
True… if I am a car manufacturer I will want a long term security and profitability. Not end on Dec and hope the exemptions gets renew. If not then? Sell the production line to who? Hey wait.. seems like it has been well planned by someone.
Why? To protect Proton hybrid.
Such flip flop policies with no long term view. If you want to implement tax free policies at the very least set it over a 5-year period. Giving yearly tax breaks with varying conditions is useless and does not give enough time for car companies to adjust their business plans accordingly.
RESIGN
With no long term plan nobody wants to invest heavily in Malaysia esp in the hybrid/EEV segment.
Flip flop policies with cronies agenda. Thai car policy never changed although their government changed. That makes Thai a better investment than Bolehland.
Thai car policy never changed although their governments keep changing.
Malaysia car policy keep changing although the government never change.
See the difference?
That is one hell of a difference ;)
This is why potential investors are leaving the country and cause the ringgit to drop badly.
Car manufacturers please pack your bags and move to thailand or indon. Dont waste anymore time with this government. Thank you for your patience which I have already loss.
Don’t worry, they already have.
http://asia.nikkei.com/magazine/20150122-Oil-pressures/Cover-Story/Slumping-crude-starting-to-hit-Malaysian-economy
“Already, investor money is fleeing from Malaysia. Total sales of Malaysian stocks by foreign investors topped $2 billion in 2014, the highest figure since the 2008 financial crisis, according to MIDF Research. The sell-off appears to be continuing this year.”
All this thanks to Proton. Terima kasih Proton
Congrats next GE sure again win by having uncertainties like Dis.
Lol good luck for the government trying to show the public that they are reducing the prices by 30%. Instead when this exception ends the prices will shoot up way more than 30%!
Another sad day in my beloved country.
no wonder car manufacturers now heading to Thailand
and we are heading towards longkang!
Why can’t they just put some commitment and big companies will put their money in this country instead of uncertainty policy.