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Honda Malaysia has announced on its website that the Honda Jazz and Honda City have been qualified as Energy Efficient Vehicles (EEV). Both of them belong to the 1,001-1,250 kg category, and undercut the corresponding 6.0 litres per 100 km required for EEV classification, with a quoted 5.8 litres per 100 km (see table below).

Under the latest revision of the National Automotive Policy (NAP 2014), carmakers that manufacture EEVs locally are granted “customised incentives” that include grants and tax breaks, which can lead to lower prices for the consumer. However, Honda Malaysia has told us that there are no changes to the retail prices for the Jazz and City, and that their pricing already takes into account the EEV incentives.

In its simplest form, the EEV is defined as a vehicle that meets or betters a set fuel consumption figure for its kerb weight, regardless of its method of propulsion or engine displacement. If a carmaker builds its EEV(s) locally and wishes to take advantage of the incentives, it has to apply for EEV certification from the government, much like Thailand’s Eco Car programme.

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It should be noted that hybrid and electric vehicles (EV) are separate from this – as long as a hybrid or EV is locally-assembled (CKD), it is completely duty-exempt, until this policy expires.

Other carmakers that have either established EEV facilities in Malaysia, have been given an EEV manufacturing licence or produce vehicles that have been granted EEV status so far include Perodua (for the Axia), Great Wall (for the M4 and H6) and Mazda (for SkyActiv cars).

The Ministry of International Trade and Industry (MITI) is expected to reveal more details on EEVs and EEV firms sometime soon – will we then finally know how much carmakers get in terms of EEV incentives?

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