AFTER 2014 BUDGET: New incentives to drive Malaysia's EEV hub bid, say sources
THE revised National Automotive Policy (NAP) is expected to be unveiled by the middle of next month, sources said.
They added that the industry roadmap will boast incentives for players that will make Malaysia a hub for energy efficient vehicles (EEV).
"The revised NAP will be announced in two or three weeks, after Prime Minister Datuk Seri Najib Razak presents the 2014 Budget in Parliament on October 25," said an industry source.
Another source said under the blueprint, the government may not extend the exemption on import and excise duties on fully imported hybrid vehicles.
However, locally assembled hybrid vehicles would continue to enjoy tax breaks, said the official.
Malaysian Automotive Association president Datuk Aishah Ahmad does not expect the revised NAP to veer much from what industry players are anticipating.
They had earlier said the blueprint would focus on, among others, new market openings and an end-of-life policy for old vehicles.
"We are all waiting for the revised NAP," Aishah told Business Times.
Malaysia Automotive Institute chief executive officer Madani Sahari said to make Malaysia an EEV hub, it only makes sense for hybrid vehicles to be assembled locally.
"Part of the NAP's focus will be on making Malaysia an EEV hub by 2020, which will transform the sector into a green ecosystem encompassing products, processes and standards.
"In our bid to make green products, the car has to be light and safe. To do that, you have to use green composites that adhere to certain standards," Madani said.
An industry source said when formulating such a blueprint, the government has to tread carefully the whole automotive ecosystem.
"The local sector is huge and it provides millions of job. Any tweaks by the government could affect it adversely.
"When the NAP was first unveiled, it hit the industry in a big way by eroding the profits of car producers and used car dealers," the source said.
He added that any changes must factor in fuel subsidies, car prices, vendors, finance and the players.