'Look for other incentives for hybrid car firms'

WHILE there is still no decision on whether or not to extend the incentives for fully-imported hybrid cars, other ways to incentivise their promoters can be explored, Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir said. Fully-imported hybrid cars are exempted from import duty and enjoy a 50 per cent discount on excise duty. The exemptions, introduced under the 2009 Budget, will end on December 31 this year. Without an extension, prices of fully-imported hybrid cars sold here are expected to skyrocket again. This means that the Honda Civic 1.3 hybrid, currently sold at about RM129,980, may revert to its pre-exemption price of more than RM150,000. The Toyota Prius 1.8, the world's most popular hybrid car, may cost over RM200,000, well off its current price of about RM175,000. Mukhriz reaffirmed the government's commitment to encourage assembly and manufacturing of green vehicles in the country.It has already offered several incentives to attract investments in this direction, he told a press conference after visiting Perusahaan Otomobil Kedua Sdn Bhd's (Perodua) headquarters and factory in Serendah, Selangor, yesterday. Mukhriz later officiated at the rollout ceremony of Perodua's 200,000th Viva. The car was launched in May 2007 and now averages monthly sales of 6,000 units. He refuted the notion that Perodua was nothing like Proton Holdings Bhd and merely rebadged other carmakers' products. "I don't get the impression of any car here being a rebadge of others. There is a large amount of research and development being done internally," he said. "Yes, there are some parts of a model being shared with other models. But it is substantially done here, as reflected in its high local content of about 90 per cent." On the perceived lack of consistent long-term policies that have hindered foreign investments, Mukhriz said the issue would be addressed under the new economic model (NEM) being formulated. Although a long-term road map, the NEM can be tweaked to current needs or changes. Mukhriz also said that domestic industries needed to push for greater automation to boost the country's competitiveness and help it attain a high-income economy, as targeted under the NEM.