No open APs after 2015

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KUALA LUMPUR: Among the measures to be implemented under the revised National Auto-motive Policy (NAP) is the termination of open approved permits (APs) for used vehicles by 2015 and franchise APs by 2020.

However, there was no clear indication if there would be any reduction in car prices.

International Trade and Indus-try Minister Datuk Mustapa Mohamed, who announced the revised policy yesterday, said the AP system was being dispensed with to honour Malaysia’s international commitments under the Asean Free Trade Area and World Trade Organisation.

New automotive policy: Mustapa (left) announcing the new measures of the NAP in Kuala Lumpur Wednesday while his deputy Datuk Mukhris Mahathir looks on.

“The termination of the (open) AP system by 2015 will provide an interim period for AP holders to diversify and venture into other businesses,” he said at his ministry here yesterday.

Under the NAP revisions, Mustapa said used cars could no longer be imported from 2015.

And from now till then, those importing used cars would not be able to under-declare their vehicles as the prices of used completely built-up (CBU) cars would be gazetted.

The Government will also prohibit the import of used automotive parts and components from June 2011.

“This is to prevent Malaysia from becoming a dumping ground,” Mustapa said.

Another NAP measure is the gradual introduction of the Vehicle End of Life Policy to scrap old vehicles.

As the first step towards implementation, the NAP has introduced mandatory roadworthiness inspections for vehicles aged 15 years or older before road tax could be renewed.

Exception would be given to vintage cars, Mustapa said.

The current freeze on manufacturing licences will also be lifted for luxury passenger vehicles with engine capacity of 1,800cc and above and priced not less than RM150,000, pick-up trucks and commercial vehicles, hybrid and electric vehicles, and motorcycles above 200cc.

As part of a new focus on greener cars and cleaner fuel emissions, Mustapa said the Government had set a target of implementing the Euro 4M specification for petrol and diesel by 2011, in a move to establish fuel standards and quality.

He also announced a host of incentives for the local assembly and manufacture of hybrid and electric vehicles and their components. These include deduction of Investment Tax Allowance or Pioneer Status for a period of 10 years, and 50% exemption on excise duty for locally-assembled or manufactured vehicles.