PETALING JAYA, March 28 — The Malaysian Automotive Association (MAA) expects sale of locally-assembled completely-knocked-down (CKD) hybrid cars to be positive this year.

President Datuk Aishah Ahmad said there was no quota in terms of the production of CKD hybrid cars and the cars are sold at more competitive prices.

In January 2014, International Trade and Industry Minister Datuk Seri Mustapa Mohamed announced a series of fresh incentives to attract more foreign and domestic producers of energy efficient vehicles (EEV) and hybrid cars, hoping to restore the country’s status as Southeast Asia’s automotive hub.

The exemption of excise tax and import tax for locally-assembled hybrid cars and electric vehicles will be extended until Dec 31, 2015 and Dec 31, 2017 respectively.     

“The incentives for CBUs (completely-built-up) had ended in 2013 while those for CKD will continue,” Aishah told a press conference after MAA annual general meeting here today.

She said currently there are three car manufacturers that had applied for approval for CKD facilities from the government.

She said total hybrid car sales in Malaysia in the first two months of this year for both CBU and CKD cars increased 32.4 per cent, or 2,785 units, compared to the same period last year with 2,103 units sold.

Aishah said Honda, which has a CKD facility, led in terms of total sales of hybrid cars with 1,767 units, followed by Toyota with 474 units and Nissan with 361 units.

“Other car manufacturers should approach the government and get approvals for setting up their CKD facilities in Malaysia,” she said, adding the amount of investment would indicate the number of customised incentives that the car manufacturer would get from the government.

“The good thing about this is that any car manufacturer can come in, it doesn’t mean you have to reach a certain amount of investment.

“They (car manufacturers) have to go to the government, submit their applications to say that the car qualifies as an EEV, which will be verified by the technical division of the transport department,” she added. — Bernama