Kuala Lumpur, Jan 21- Following are highlights of the National Automotive Policy (NAP) 2014 unveiled by the International Trade and Industry Minister Datuk Seri Mustapa Mohamed yesterday:
Objectives:
* to promote competitive and sustainable domestic automotive industry including the national automotive companies.
* to transform Malaysia into a regional automotive hub in energy-efficient vehicles (EEV)
* to promote higher value-added activities
* to bolster exports of vehicles and components
* to encourage participation of Bumiputera companies in total value chain of the domestic automotive industry
* to safeguard consumers’ interest by offering safer and better quality products at competitive prices.
* Overall, the NAP 2014 provides a total financial package of about RM2 billion and measures and implementation plans to realise the NAP 2014
* The NAP 2014 targets at least 200,000 units of cars to be exported while exports of components will reach a minimum value of RM10 billion in 2020
* The government is open to possibilities to reduce excise duties gradually when the fiscal situation permits.
* On Approved Permits (APs), the government has decided an indepth study to be undertaken to asses the impact of the termination of Bumiputera participation in the auto industry.
* The NAP 2009 has specified for termination of the open AP by Dec 31, 2015 and the franchise AP by Dec 31, 2020.
Car Price Reduction
* A car price reduction framework has been developed to fulfil the promise of gradual reduction ranging 20 per cent to 30 per cent over the next five years.
* More new national car models and variants will be introduced at competitive prices this year.
* The NAP 2014 will see a bigger base of new models being introduced in the domestic market. These models will not only be greener but also safer.
* The government is constantly reviewing its fiscal position and is open to possibility to reduce excise duties when the fiscal situation permits.
* Models such as Saga SV, Persona SV, Viva, Alza and MyVi S Series, the new Honda Jazz and Nissan Almera were introduced at reduced prices of between three and 17 per cent. These models accounted for 30 per cent of market share in 2013.
Energy-Efficient Vehicle (Eev)
* Malaysia to become an energy-efficient vehicle (EEV) hub. This encompasses strategies and measures to strengthen the entire value chain of the automotive industry and will also lead to environment conservation, high-income job creation, transfer of technology and create new economic opportunities for local companies.
* The EEV includes fuel-efficient vehicles, hybrid, electric vehicles and alternatively-fuelled vehicles.
– Bernama
