Auto Makers to Ask Malaysia for Extended Hybrid Duty Break

The Malaysian Automotive Assn. is calling for a 3-year extension of the government’s duty-free period for imported hybrid vehicles.

The government’s Bernama news agency reports MAA President Aishah Ahmad told reporters after the group’s annual meeting that the association plans to write to the government seeking the extension.

The current 2-year period for full exemption from import duty and excise tax for hybrid and electric cars below 2.0L ends Dec. 31.

“We always ask for a longer term of around five years to enable us to draw up future plans for the automotive industry,” Aishah says.

She says the exemption has boosted hybrid-car interest, with sales up 84% last year to 15,355 units. “This concession has given a huge boost to hybrid car sales in Malaysia.”

Meantime, The Business Times quotes Aishah as predicting Malaysian new-vehicle sales will grow about 2% to 640,000 units this year after 4.6% growth last year to a record 627,753 units.

“We are confident that sales will increase,” she says. “The first two months of the year saw an increase of 18%.”