Revised National Automotive Policy to focus on EEVs, to be announced in mid January 2014

toyota-prius-audi-a6-hybrid

There were no auto related matters mentioned in the last two Budgets tabled by the Prime Minister, and the revised National Automotive Policy is long overdue to be announced. This time though, we seem to have specific dates to look forward to.

The government is expected to announce the revised NAP between January 10-15, 2014, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said yesterday at the Kuala Lumpur International Automotive Conference. The policy is currently in the final stage of drafting and the Cabinet is expected to approve it by year end.

The NAP will focus on ‘energy efficient vehicles’. In the first place, what energy efficient vehicles are have to be defined. The most significant part of the last NAP announcements have been the hybrid car tax exemptions – 100% import and excise duty exemption have made a significant impact to the prices of such cars, but were limited to cars with combustion engines of under 2.0 litres of displacement.

The end result of all that is that only a single hybrid car is currently being locally assembled in Malaysia – the Honda Jazz Hybrid. We expect more to be added to this list, such as the Toyota Camry Hybrid and the Nissan Serena S-Hybrid, but should the term energy efficient really be limited to hybrid cars alone?

Instead of dictating the technology so specifically, why not just set a kilometre per litre goal for each segment and let the car companies decide what technology to use to achieve that? Incidentally, the mid-January timeframe for the NAP announcement means that the current tax incentive programme for hybrids/EVs is set to run its course on December 31.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • as usual its gonna b disappointing..

    Like or Dislike: Thumb up 59 Thumb down 43
    • It is still not being table..how can u say it disappointing?

      Like or Dislike: Thumb up 56 Thumb down 42
      • Malaysians ARE so stupid. on Nov 13, 2013 at 9:50 am

        In 1989, I bought my first brand new Mercedes. It was the Mercedes 230E. Real CBU German car. It was like a tank. I bought brand new at RM57,000

        At the same time in 1989, my brother in the UK bought the same car a Mercedes 230E for about 23,000 pounds.

        Today, in Malaysia, I got no money to buy an E250. It is RM420,000. That also CKD (with 60% Made in Malaysia parts). So I thought it was inflation, so I just buy a Myvi.

        My brother in the UK just bought a Mercedes E250. Brand new. He bought for 28,000 pounds. German CBU.

        Moral of the story.

        UK price from 1989 to 2013 was 23,000 pounds to 28,000. An increase of 5000 pounds. Still CBU German Made.

        Malaysia price from 1989 to 2013 was RM57,000 to RM420,000. An increase of RM350,000. in 1989 my Mercedes in Malaysia was CBU. Now CKD.

        So who is really lying to us?

        Well-loved. Like or Dislike: Thumb up 258 Thumb down 7
        • m4a1 carbine on Nov 13, 2013 at 11:33 am

          WOW! RM57000, that”s really cheap!

          in 1983 a new Nissan Sunny cost about RM18000
          In 1985 a Proton Saga cost about RM15000
          iN 1985 Honda Accord cost around RM40000

          But in 1990, a Honda Accord cost RM90000…I guess all these taxation shit
          started around the 90″s? Can anyone correct me?

          Like or Dislike: Thumb up 48 Thumb down 1
          • know why? Its birth of our BELOVED Proton, certainly other brands need to pay higher tax in order to make Proton affordable and sustain

            Like or Dislike: Thumb up 29 Thumb down 1
          • Rich Arabs enjoy 50% less on Nov 15, 2013 at 3:56 pm

            Malaysians have no shame. All Proton models are sold cheap overseas. Infact in Saudi, every Proton model is sold for half the price it is sold in Malaysia. We Malaysians are subsidizing rich Arabs.

            People may say because our tax is high. Well Proton is the Government. It is “unofficially” fully owned by the government. The government of Malaysia can decide to reduce the tax or abolish the tax for Proton in Malaysia if it cares for the rakyat.

            The rakyat never asked for Proton cars. The government started it to make their cronies richer. Nobody asked the Government for Proton cars in the first place. So, when the government came out with Proton, they should give the rakyat the cars cheaply. Otherwise, don’t bother coming out with Proton. After all, Japanese cars are much cheaper than Proton if MITI does not control the prices of other car brands in Malaysia.

            Honda and Toyota, Nissan want to bring down their prices but Government warn them that it should never be lower or close to Proton prices. So, other Japanese brands are stuck with getting approval for to price their cars.

            Anyway, Proton should give their rakyat cheap cars. Why give cheap cars to rich Arabs? They have so much of money. We Malaysians suffer paying our loans. If the government really cares for Malaysians, they will see that Proton cars are taxed lower. After all its our local brand. they do that for everything from chocolates, cooking oil, biscuits, aircons etc. They tax Mat Salleh goods higher but local goods cheaper. So, Proton should either be taxed lower or abolish the tax completely for Malaysians to enjoy cheaper cars.

            Like or Dislike: Thumb up 15 Thumb down 0
        • Andrew on Nov 13, 2013 at 4:49 pm

          Car prices have actually gone down all over the world in the past 20 years. Cars have become much cheaper despite inflationary powers because there is economies of scale and a larger consumer base compared to earlier years. Also people earn far more than the 70s and 80s creating a constant demand for cars, so laws of demand and supply dictate, lower prices.

          In Malaysia terbalik. Because to feed the cronies and because of stealing and corruption, car prices have gone up over the years. It is the ONLY country in the world that car prices have gone up. Singapore car prices are technically higher but the Singaporean earns 5x more than the Malaysian and their GDP per capita is the 3rd or 4th highest in the world. What this means is that car prices in Singapore too have dropped over the years in proportion to the cost of living and remuneration of the average Singaporean. For example, a Honda Civic Hybrid is SGD$133,900. A normal average Singapore government servant earns about SGD$8000.

          Do you think Singapore or Malaysia got cheaper car prices when our Honda Civic Hybrid is RM$118,000 (kononnya tax free)

          Like or Dislike: Thumb up 30 Thumb down 2
          • Andrew on Nov 13, 2013 at 7:49 pm

            I am a Singaporean and I would like to point out that an average Civil Service worker don’t really earn $8000. More like $3000 – $4000. I am really curious where you get your figures from. And we also don’t really earn 5x more than Malaysians. And don’t forget, our property prices are just as crazy as our car prices. And regarding the 3rd or 4th highest GDP per capita, it’s really because the rich in Singapore are all those foreigners, converted citizens, and not the normal average Singaporean. People like us struggle to make ends meet, just in case you are not aware.

            Like or Dislike: Thumb up 33 Thumb down 2
          • oomph on Nov 13, 2013 at 8:51 pm

            i hear you Andrew. Taxi driver in Singapore told me the same thing about the foreigners and high cost of living for locals.

            Like or Dislike: Thumb up 7 Thumb down 1
          • chinz on Nov 13, 2013 at 11:34 pm

            andrew! many thing that u still dunno yet! come over to east malaysia! u will know, our salary not even reaching 1000! around 800, after conveted to sin dollar is around SGD 311! and house price not cheap too normal 2 room apartment will cost 300K or above(compare singapore confirm cheaper, but not forget our salary) at singapore there, no car? won’t die! public transport bunch of it, some operate till midnight! over here after 8pm you’re in deep sh*t! make it simple! no car die! as you say not 5x earning this story, let have a mathematics question SGD 3000(singapore worker salary) divide by SGD 311(malaysia worker salary)
            by the way i have been singapore once! nice country, clean, public transport, thumb up!

            Like or Dislike: Thumb up 11 Thumb down 7
          • Andrew SG on Nov 16, 2013 at 12:37 am

            Hello Chinz,
            FYI, I have been to Sabah many times. My wife is a Sabahan. Yes, it is true things are more costly in the East than in the Peninsular. And I agree the situation in Sabah (Sarawak I am not too sure) is not good there. But please, you have only been to SG once, and you are so sure that the transport system is really flawless here? I think you should come and stay here for a few months and get yourself squeezed everyday on the trains and buses first before saying that. But wait, you have to be able to get on the train / bus first before you can experience that. And you can always wait for the next train, and the next, and the next…

            Like or Dislike: Thumb up 7 Thumb down 1
      • Base on the ‘Good Track Record’

        Like or Dislike: Thumb up 8 Thumb down 1
      • Low Budget on Nov 13, 2013 at 1:47 pm

        We know the Gomen too well, don’t we? Whatever ‘NAP’ it is, it won’t definitely cause Malaysian motorists to get an orgasm.

        Like or Dislike: Thumb up 7 Thumb down 1
      • based on track record, so far there have been 2 NAP announced. Yet car prices are still super high and most are with 9 years loan, how can that b not disapointing??. probably they allow 20 years tenure and extend ap till 2020 instead 2015..lol

        Like or Dislike: Thumb up 9 Thumb down 1
      • Ya la..this country is most corrupt, most oppress gov, most stupid, most bias, most rasis….

        Like or Dislike: Thumb up 10 Thumb down 5
    • Najib, where is the 30% reduction? on Nov 13, 2013 at 9:02 am

      Where is Najib’s promise of 30% reduction in car prices over a period of 5 years? Najib promised before the election that if we voted for him and BN, he would ensure that he would match PKR’s offer to reduce car prices. Najib himself quoted saying that the BN government would reduce car prices by up to 30% gradually over 5 years and we should trust BN. Infact he said BN always keeps to their word. 4 months have passed and nothing has been done.

      Infact companies like Toyota and VW have increased their prices. Does not matter now whether a car is Hybrid, CKD or CBU. What matters now is where is Najib’s promise?

      Can Datuk Seri Mustapa Mohamed also assure us that his tuan will keep his promise? That is more important than Enery Efficient Vehicles. Keeping to one’s promise is the most basic element of trust.

      Well-loved. Like or Dislike: Thumb up 94 Thumb down 5
      • mr_em on Nov 13, 2013 at 9:30 am

        Inflation 30% over 5 yrs and car price reduction 30% over 5 yrs. You do the math.

        I guess they did not promise 30% reduction over the CURRENT PRICE. So sorry if you people got “conned”. Nobody reads the small print these days so Govt won’t hear you crying over spilt milk. Next time ask more questions before you vote, OK?

        Like or Dislike: Thumb up 45 Thumb down 6
      • ABTguy on Nov 13, 2013 at 10:41 am

        I did not trust his so called promise at all prior to election, so the end result like now does not upset me.

        The result of GE did.

        All must wake up, don’t complain if you voted for bee end.

        Like or Dislike: Thumb up 39 Thumb down 2
      • No Logic on Nov 13, 2013 at 1:44 pm

        Nearly all car companies ARE owned by the government. Honda, Toyota, BMW, Kia, etc. Look into the background of each company, all of them are fully GLC or is owned by the Government.

        So, this is a good way to rip people off in Malaysia. Dua kali ganda when ALL the banks are GLC and government owned. Every single bank in Government owned despite seeming Private. The banks get a free ride too with car loans. They live on car loans.

        Government gets hundreds of billions back from the rakyat if you realise that ALL car companies ie car brands and ALL banks are GLC owned.

        Easy way to screw and perah the rakyat.

        Like or Dislike: Thumb up 19 Thumb down 0
      • Low Budget on Nov 13, 2013 at 1:52 pm

        You should be lucky if he wake up from his ‘NAP’ and and announce 10% less on excise duty.

        Like or Dislike: Thumb up 2 Thumb down 1
      • Janji dicapati for lower car price, lower petrol price, cut down toll price……

        Janji ditepati for increased petrol price, increased sugar price, increased electricity bill (soon), increased tax (GST, soon)………

        Like or Dislike: Thumb up 3 Thumb down 0
  • presna on Nov 13, 2013 at 12:53 am

    hmmmm, so this effectively means all of the hybrid duties exemptions will end on 31Dec, dashing all hopes for a sudden announcement in December of an extension…. dang….

    Like or Dislike: Thumb up 8 Thumb down 1
  • ntah pa2 on Nov 13, 2013 at 1:01 am

    letrik kan mahal..macamna nak pakai keta letrik?

    Like or Dislike: Thumb up 8 Thumb down 7
  • Yeefung on Nov 13, 2013 at 1:04 am

    Nissan Serena hybrid isn’t a full hybrid….
    The functions of so called “s-hybrid” are the same as the mazda6 ieloop n the upcoming mazda which also comes with the same functions. Yeah.. Maybe mazda biante as well . It only uses the rechargeable capacitor / battery to power the aircond n other electronic stuff when the engine is idling. Yeah, the engine stops when u stop.
    Why only nissan gets the tax exemptions n not mazdas??
    Understood the same function also installed in bmw , audi n Mercedes . Do they get exemptions too? Or the consumers being cheated?

    Like or Dislike: Thumb up 28 Thumb down 1
    • The main difference between Mazda ieloop & Nissan S-Hybrid is S-Hybrid has a electric motor. ieloop is just regenerative deceleration. I think the tax exemption is for vehicles with alternative drive & not just recovery of energy while deceleration.

      Like or Dislike: Thumb up 9 Thumb down 2
      • Fungyau on Nov 13, 2013 at 9:23 am

        That is where u have been fooled. There is no such acceleration assist in Serena shybrid… The features is exactly the same as ieloop, just enlarged capacity for the alternator to store energy

        Like or Dislike: Thumb up 9 Thumb down 0
        • sepul on Nov 13, 2013 at 12:16 pm

          True with what Fungyau said. The term S-Hybrid is a misleading one. Possibly the G describe EEV as hybrids and EV only.

          Such a mediocre assumption because EEV or energy efficient vehicles is a general term, which should apply to any vehicles with low carbon emission and fuel consumption rating, petrol or diesel powered ones included.

          Like or Dislike: Thumb up 6 Thumb down 0
    • Chris on Nov 13, 2013 at 8:50 am

      Just like when you to your local phone shop or PC shop to get a new phone/PC, where some of the employees knows absolutely nothing about the gadgets.

      I’m willing to bet that people who draft the NAP knows nothing about cars, probably isn’t even a car person to begin with.

      And.. when it comes to business… endless conspiracy theory.. you know..

      Like or Dislike: Thumb up 20 Thumb down 0
  • NAP annoucement delay, thought it will announce middle of this month

    Like or Dislike: Thumb up 3 Thumb down 1
  • If the govt set a km/L goal, it has to come with a testing standard. While it is not a concern for local distributed cars, but what about “grey” imports? If the govt set a high km/L goal, i suspect most local cars wouldnt make it to the energy efficient list…

    Like or Dislike: Thumb up 7 Thumb down 0
  • I think all car maker n official distributor know how the EEV in NAP work especially the management top…that’s why there is many appearance of hybrid car from nissan to mercedes, from small engine to big engine..

    Like or Dislike: Thumb up 16 Thumb down 6
  • kadajawa on Nov 13, 2013 at 9:05 am

    “why not just set a kilometre per litre goal for each segment and let the car companies decide what technology to use to achieve that?”

    We all know how poor Fuel efficiency by Proton engine…that’s why all the delays, waitings by NAP…

    The world is moving with latest engine fuel efficiency tech but here everything must be stopped just to wait Proton to improve first…NAP – never against Proton….

    Like or Dislike: Thumb up 22 Thumb down 3
    • Dregen on Nov 13, 2013 at 10:07 am

      Bro.. Im not trying to defend Proton. But u might wanna teach urself more la. Proton did have the technology hybrid & ev. They even won a few competition in the UK.

      I guess for em Proton, it all comes down to demand, cost & customer’s perception. Until then, no matter how good their product is, if people hesitate to buy buy it..tak guna juga buat kn.

      Like or Dislike: Thumb up 9 Thumb down 24
      • Having the tech & large scale commercial manufacturing & selling it are different.

        Like or Dislike: Thumb up 16 Thumb down 1
  • Instead of dictating the technology so specifically, why not just set a kilometre per litre goal for each segment and let the car companies decide what technology to use to achieve that?

    Yup, good idea…eg if EEV is defined as those achieving more than 20km/l….yup, most modern diesels will be able to achieve this without trying (and most NA petrols will be hard press to reach this)

    Like or Dislike: Thumb up 1 Thumb down 0
  • abdullah on Nov 13, 2013 at 10:10 am

    It will be a failure like all previous NAP.

    Like or Dislike: Thumb up 12 Thumb down 1
  • takNakP1 on Nov 13, 2013 at 10:17 am

    Let me speculate.
    “There will be no reduction in tax/duty for non-EEV becos we want to support GREEN environment, bla bla…”

    Like or Dislike: Thumb up 4 Thumb down 1
  • Inept and useless.

    As usual, cannot even come out with policy on time, after fifty years, NAP just gets worse.

    Like petrol price rise, all last minute.. Why?

    Like or Dislike: Thumb up 7 Thumb down 0
  • If najis set a more logical km/l goal, they would run out of money, because it doesn’t benefit them from taking your tax money. Its waaay too much money sent back to the citizens.

    Like or Dislike: Thumb up 12 Thumb down 2
  • Wilson on Nov 13, 2013 at 11:33 am

    I believe other than extending the hybrid car tax exemption period, no any other surprise..

    Like or Dislike: Thumb up 2 Thumb down 0
  • practical on Nov 13, 2013 at 12:18 pm

    If i tell my boss that i will only present the workpaper in mid january after the current program ends in dec, i will get fired because i did not plan ahead. typical tidak apa attitude of the civil service. it’s like “shit first, then only look for toilet”

    Like or Dislike: Thumb up 20 Thumb down 0
  • Richard on Nov 13, 2013 at 1:05 pm

    I suspect the differences year to year of Malaysian cars prices of the same model compared with UK not so much due to inflation alone .Cronies might be the the main suspect

    Like or Dislike: Thumb up 3 Thumb down 0
  • Pee End on Nov 13, 2013 at 1:26 pm

    LET’S IMPLEMENT TO SCRAP ALL CAR ABOVE 9 YEARS OLD.

    SO EVERYONE HAVE TO BUY A NEW CAR ONCE SETTLE THEIR 9 YEARS LOAN!

    HIDUP AUTOMOTIVE NEGARA, HIDUP BN, HIDUP PROTON, HIDUP KRONI!

    Like or Dislike: Thumb up 12 Thumb down 1
  • Tree Hugger on Nov 13, 2013 at 1:38 pm

    Agreed with you Paul.

    The EEV definition or scope should be based on MPG rather than specific engine technology. As long as the car can meet the minimum MPG requirement set by the government, then it should enjoy all those tax exemptions and then most importantly the saving be passed to the eco-concious buyers. For example, the Ford’s 1.0 Ecoboost might not be a hybrid but it still has a respectable technology and should be appreciated for having MPG figure that rivals and even beats some of the hybrid engines out there.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Visitor on Nov 13, 2013 at 1:56 pm

    Perhaps NAP should also include provision that requires every car companies that sells cars in the country (P1 and P2 included) to state their models’ fuel consumption on their website/brochure. This will encourage them to create a more fuel efficient vehicles because people will take into account fuel efficiency when buying new cars.

    Like or Dislike: Thumb up 3 Thumb down 0
  • NAP Concern on Nov 13, 2013 at 3:37 pm

    A part from the EEV, NAP should also set a series of the safety features that become a must for every piece of car they sell to us. NAP must impose hefty fine for those car manufacturers that don’t want provide such safety features for the cars and this heavy fine is count piece by piece. And for those manufacturers that abide to this regulation, NAP can provide them some incentives or tax exemption and in return it would cost more to us as consumers here. Hence toward us as the driver and passengers, we will definitely feeling safer as compare to what we facing now.
    For A segment : at least 2 airbags, ABS, EBD, BA as standard.
    For B segment: at least 4 airbags, ESP, ABS, EBD, BA, Disc brake (Front & Back), ISOFIX as standard.
    For C segment: at least 6 airbags, ESP, ABS, EBD, BA, Disc brake (Front & Back), ISOFIX, blind spot monitoring system as standard.
    For D segment: at least 8 airbags, ESP, ABS, EBD, BA, Disc brake (Front & Back), ISOFIX, blind spot monitoring system, active cornering light, Lane departure warning system and other latest technologies as standard.
    These also apply to MPV, SUV and that kind of cars.
    And all the cars built also must have very good body structure as well.
    With these, only our life will be more precious more than ever….

    Like or Dislike: Thumb up 5 Thumb down 0
    • jacksonljs on Nov 13, 2013 at 9:54 pm

      Agreed. Plus there’s no such thing as ‘You get what you pay for’ when it comes into few basic active (ABS+EBD+BA and most importantly, ESC, without ESC esp. on more expensive cars is like driving without seatbelt on) and passive safety features (min. 2 airbags with front passenger airbag deactivation option, 3-point safety belt for every seat and ISOFIX mount point at every rear seat). The other ornamental features/accessories such as leather seat, multimedia touchscreen, skirtings as well as alloy rims and remote control side mirrors and driver seat can be offered for higher grade/specs depends on number of features available for each grade.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Sad Man on Nov 13, 2013 at 6:09 pm

    Yea.. NAP.. najib auto policy

    Like or Dislike: Thumb up 2 Thumb down 2
  • Annoynimouse on Nov 13, 2013 at 7:09 pm

    Well said in the last para… couldn’t agree more.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Instead of just cars, I want to see better quality fuel especially diesel.

    Like or Dislike: Thumb up 3 Thumb down 0
  • genius.girl on Nov 14, 2013 at 1:59 pm

    you guys have so much to say…but it doesnt mean anything until one of you actually does something to fix the country. lip service? armchair politics? easiest thing in the world to do.

    Like or Dislike: Thumb up 0 Thumb down 0
  • masters in renewable energy on Nov 22, 2013 at 1:37 pm

    just take rate/total of CO2 emission and fuel consumption into EEV definition, because only those 2 parameters are the significant ‘Green’ indicators for effective car.Then, let the car manufacturers decide what technologies they capable to achieve that goals.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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