National Automotive Policy: Will it affect Honda car buyers in Malaysia?

National Automotive Policy: Will it affect Honda car buyers in Malaysia? 1

The Malaysian government reviews the national automotive policy from time to time, and is contemplating imposing conditions on the import of foreign vehicles. While the country is in favor of free trade, certain conditions are still in discussion.

Do you know that the Malaysia automotive industry contributes about RM40 billion of Malaysia’s GDP? At the same time, the industry employs more than 700,000 people nationwide, comprises 27 OEMs (vehicle manufacturers), and has established an estimated 53,000 aftermarket and over 600 part and component suppliers?

It’s a huge market and industry. In fact, the Malaysian automotive industry is the third largest in Southeast Asia, with an annual production of more than 500,000 vehicles.

Although the automotive industry in Malaysia primarily serves domestic demand, and only a several thousand vehicles are exported annually, the export of parts and components that are made in Malaysia had grown over the years, and they are a huge contributor to Malaysia GDP (over RM11 billion).

2014 was the last time a review was done on the policy, but the condition of the automotive sector has since changed a lot, not only in Malaysia but globally. This time around, the National Automotive Policy will review additional elements in terms of promoting electric and hybrid cars.

**The policy will cover all areas of the automotive industry, from supply chain, human capital and development of charging facilities.

One thing’s for sure: the National Automotive Policy has created uncertainty, especially whether the government decides to maintain the Energy Efficient Vehicle (EEV) programme that provides incentives for fuel efficient, hybrid and electric vehicles.

What is the definition of Energy Efficient Vehicles?

Energy Efficient Vehicles are vehicles that meet a set of define specification in terms of carbon emission level (g/km) and fuel consumption (l/100km).

For example, Honda Jazz hybrid produces 1.8 litre naturally aspirated levels of output and has fuel consumption of 4.0 litres per 100 kilometers. The Honda Jazz hybrid price in Malaysia starts from RM76,316 depending on the model.

In 2018, 18,754 hybrid cars were sold, compared to 13,650 units in 2017. So it will be great if the Energy Efficient Vehicles (EEV) programme continues to support all industry players.

National Automotive Policy: Will it affect Honda car buyers in Malaysia? 2

Will National Automotive Policy affect Honda car buyers?

The simple answer is no. This is because Honda Motor Company sell both imported and locally assembled units in Malaysia. Moreover, Honda has 21 percent market share and is one of the top selling foreign brands in Malaysia.

Honda car assembly plant in Pegoh has been operating since 2003. At this moment, they are producing seven models:

Besides, it also assembles hybrid variants of the Jazz and City respectively, with the Jazz hybrid being the first in the class to be manufactured in Malaysia.

Additionally, various Honda Malaysia promotions are available from time to time for new Honda vehicles. This includes goodies such as Honda rewards, exclusive gifts, cash rebates, making Honda cars extremely attractive among Malaysian buyers.

For after sales service, with a wide network of Honda service centers in Malaysia, Honda car buyers are best known for enjoying superior services and total peace of mind when it comes to vehicle maintenance.

The National Automotive Policy is still pending for further announcements, and we will have to wait to learn more about it. Let’s hope that the Energy Efficient Vehicles (EEV) programme continues to support all industry players and increase the use of Energy Efficient Vehicles (EEV).

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