Budget: Boost for hybrid cars?

Automotive industry players are hoping that hybrid vehicles, which sales are expected to hit record high this year, be given excise duty exemptions again in Budget 2012.

?We hope full exemption of import and excise duties for hybrid and electric vehicles be extended up to five years in order to build market acceptance of this niche segment,? Malaysian Automotive Association (MAA)?president Datuk Aishah Ahmad told?StarBiz.

Last year, the Government granted full excise duty exemptions on hybrid cars of below 2,000cc until Dec 31, 2011. The move resulted in a big drop in prices for the cars and fuelled the demand for such vehicles.

UMW Toyota Motor Sdn Bhd and?Honda Malaysia Sdn Bhd have benefited from the surge in the sale of the?Toyota Prius and?Honda Insight hybrid vehicles respectively.

Frost & Sullivan partner (automotive and transportation practice head for Asia-Pacific) Kavan Mukhtyar said the exemption of excise duty for hybrid cars at the budget last year was a good move.

?Governments around the world are encouraging green vehicles. Hybrid vehicles have seen increased consumer acceptance due to attractive pricing. This is possibly due to the excise duty exemption.?

?The excise duty exemption should be continued to support further growth. Proton?s plan to launch a hybrid will result in substantial volume growth and present new opportunities for the automotive ecosystem.?

According to the MAA, sales for the?Toyota Prius jumped to 1,301 units in August from 162 units in previous corresponding period, while?Honda Insight sales surged to 3,538 units from 107 units a year earlier.

Lexus Malaysia Sdn Bhd also experienced an increase in sales for its hybrid offering the?CT200h, which comes with a 1.8-litre petrol engine and qualifies for the excise duty exemption under Budget 2011.

An industry observer said the sales of hybrid cars would have been higher if it not for auto parts disruption due to the March earthquake and tsunami in Japan.

He said 2011 was a ?watershed year? for the auto industry in terms hybrid cars and the adoption of green technology.

?For years, the?Prius has been the best selling hybrid car in the world and yet Malaysians never had the opportunity to own one due to the high pricing.?

?Sales of hybrids will see a big drop if the excise duty is re-introduced.?

Aishah hoped that any incentives from the Government relating to the import and excise duties be also extended to energy efficient and other environmental friendly vehicles without engine size restrictions.

?This would help to promote Malaysia as the regional hub for hybrid, electric, energy efficient and environmental-friendly vehicles.?

Source: http://www.eco-business.com/news/budget-boost-for-hybrid-cars/

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