The road to making Malaysia a regional automotive hub for energy efficient vehicles (EEV) will be kicked off by giving out manufacturing licenses for EEVs without any restrictions, a one up on markets such as Thailand and Indonesia that has restrictions on investment and production units for eco cars. International
The road to making Malaysia a regional automotive hub for energy efficient vehicles (EEV) will be kicked off by giving out manufacturing licenses for EEVs without any restrictions, a one up on markets such as Thailand and Indonesia that has restrictions on investment and production units for eco cars.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the government hopes to approve three to four manufacturing licenses for EEVs by 2018.
Manufacturing licenses for vehicles with a capacity of 1.8 liters and below were previously frozen.
EEV is defined as vehicles that meet a set of specifications in terms of carbon emission level and fuel consumption. EEV includes fuel-efficient vehicles, hybrid, electric vehicle and alternatively fuelled vehicles such as compressed natural gas (CNG), liquefied petroleum gas (LPG), biodiesel, ethanol, hydrogen and fuel cell.
Based on this vision, about 85% of vehicles produced in Malaysia in 2020 will be EEVs.
The NAP 2014 will also provide customized incentives for both foreign direct investment and domestic direct investment such as pioneer status and investment tax allowance; grants for research and development and training; infrastructure facilitation; lower taxes and expatriates.
Meanwhile, the exemption of excise duties and import taxes for hybrids and electric vehicles (EV) will be extended for models that are assembled in Malaysia.
The exemption will be extended until Dec 31, 2015 for hybrids and Dec 31, 2017 for EV.