Toyota, Honda, Nissan to be hit the most by new National Automotive Policy

by **Cals** Wed 12 Feb 2014, 08:46

ublished: Wednesday February 12, 2014 MYT 12:00:00 AM
Updated: Wednesday February 12, 2014 MYT 6:39:52 AM
Toyota, Honda, Nissan to be hit the most by new National Automotive Policy
BY EUGENE MAHALINGAM
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PETALING JAYA: The local hybrid vehicle sector is undergoing a shake-up following the changes brought about by the new tax incentive system under the National Automotive Policy (NAP).
Marques selling hybrid and electric vehicles, such as Toyota, Honda and Nissan, are the ones to be hit the most.
Under the NAP, the excise duty exemption will only be given to locally assembled or completely-knocked-down (CKD) hybrid and electric cars.
The exemption for hybrids will end on Dec 31, 2015 and for electric cars on Dec 31, 2017.
This means prices of completely-built-up (CBU) units will revert to their original prices before the exemption for hybrid and electric vehicles was first announced in Budget 2011.
The exemption, which officially ended on Dec 31, 2013 had applied to both CKD and CBU models.
According to UMW Toyota Motor Sdn Bhd’s website, the on-the-road (OTR) price for a Toyota Prius (with the exemption) is RM139,915.30. This only applies to its 2013 stock, the website mentioned.
Prior to Budget 2011, the Toyota Prius had cost around RM175,000. When contacted, UMW Toyota Motor president Datuk Ismet Suki confirmed that prices of its new stock will increase.
“The new shipment has still not come in and the new price has yet to be finalised,” he said, adding that the company had no plans to assemble the Prius locally.
UMW Toyota has, however, committed to locally assembling the Camry Hybrid, with operations expected to commence by year-end.
Honda Malaysia Sdn Bhd chief executive officer Yoichiro Ueno, on his part, said the company intends to continue selling its existing hybrid models.
“However, due to the withdrawal of the Government subsidy for CBU hybrids, a considerable price increase is anticipated, and we expect the sales volume to be marginal,” he said in a statement.
Honda Malaysia’s CBU hybrids include the Civic Hybrid, CR-Z and Insight. It assembles the Jazz Hybrid at its Pegoh plant in Malacca.
“The Government has announced the extension of the subsidy for CKD hybrids and Honda Malaysia is considering focusing on CKD hybrid models,” said Yoichiro.
“Currently, we are producing the Jazz Hybrid locally and are planning to add more CKD hybrid models in the near future.”
Meanwhile, a source said Edaran Tan Chong Motor Sdn Bhd (ETCM), the distributor of the Nissan Leaf electric vehicle in Malaysia, was in talks with the Government regarding the removal of tax incentives on CBU electric vehicles.
“Nothing has been firmed up and details on whether there will be a new price for theLeaf is yet to be finalised.”
The source added that ETCM had no plans to assemble the Leaf locally, given that the vehicle was “not a volume model”.
The Leaf costs RM168,800 (OTR). Since its launch in December, some 10 units have been snapped up. ETCM also imports the Serena Hybrid.
Hybrid vehicle sales rose 24% in 2013 to 18,967 units from 15,355 units a year earlier.
The bulk of the sales last year was from Honda and Toyota, which sold 8,550 and 5,789 units, respectively.
To be fair, however, these car companies had expected the outcome of the NAP and have put in strategies to address the expected fall in sales of the affected models.
In Toyota’s case, plans had already been put in place to assemble the Camry Hybridin Malaysia.
Meanwhile, a representative from Honda Malaysia confirmed that there has been a surge in sales for its existing hybrid stock, which still qualified for the tax relief under the old system.
“We did see a rush in demand. For our 2013 models, we only have the Hybrid CRZ. The other models have all sold out.”