Honda Malaysia CEO Atsushi Fujimoto has called on the Malaysian government to provide incentives and reduce taxes for manufacturers and importers of hybrid cars. He added that the Honda Civic Hybrid is priced RM40,000 higher than the regular petrol-engined 2.0S model and was selling between one to two units a month.

“If there’s government assistance, it will be better for us as we can sell more hybrid cars,” said Fujimoto-san. MITI minister Tan Sri Muhyiddin Yassin has already indicated in the past that MITI will consider revising the rates for CBU hybrid cars. With pushes from both principals as well as grey importers with strong connections such as Premier Hybrid Cars, we could really see something happening with hybrid car taxes in the future.

However, at the same time the PM is also pushing for Proton to come out with a hybrid car and Proton has reported they are collaborating with hybrid component suppliers for a hybrid car that could be ready for market in 2 to 3 years if it finds it feasible.

So there is also a possibility for MITI pull a flip flop and instead put up a protective policy for Proton’s hybrid car. Let’s cross fingers and hope this does not happen.