New Automotive Policy: What to expect?
The New Automotive Policy (NAP) announcement, set to be released on 20th January 2014, by the Federal Government had Malaysians anticipating lower car prices.
The current policy has always revolved around the initiative to resuscitate the local automobile industry, to boost local manufacturers, such as Proton and Perodua. Individuals have expressed their concern on the rising prices of imported vehicles.
However, the new National Automotive Policy, is expected to relax the restrictions imposed on foreign automakers from manufacturing small passenger cars, according to a Bloomberg report.
Some of the predictions and expectations are:
- According to the same Bloomberg report, the new policy, would further open up national maker Proton to foreign competition.
- According to M. Madani Sahari, CEO of the Malaysia Automotive Institute, the car prices in the country could fall by as much as 30% by the end of 2018 as a result of government initiatives.
- Most Malaysians are expecting the tax exemption on hybrid cars to be extended as the exemption ended in 2013.
- However, some think this will only be applicable for locally assembled hybrid cars as Perodua and Proton will most probably be coming up with their own versions of hybrid and electric cars.
- The experts opined that Honda, Toyota, Nissan, Lexus and Audi, which have benefited from import tax and excise duty exemption for below 2,000cc hybrid models, will have to come up with a new business strategy without the tax exemption.
- A netizen commented on Facebook, saying that the discount on car prices should not only be for hybrid or electric cars, but on all types of cars as well.
What is your take on the New Automotive Policy? Are you expecting cheaper cars?
