End of life vehicle policy likely to be implemented

Published: Wednesday November 6, 2013 MYT 12:00:00 AM
Updated: Wednesday November 6, 2013 MYT 7:49:29 AM 

PETALING JAYA: The end of life vehicle (ELV) policy is expected make a comeback in the latest revision of National Automotive Policy (NAP) to be announced by year-end.
Industry players say the people are generally now more aware of the need to ensure their vehicle’s roadworthiness and also to safeguard themselves against other road-users.
“With the ELV policy in place, consumers could opt for newer cars rather than using clunkers that are way past their lifespan. This would ensure continued new sales but it will only be successful with the right incentives,” said one industry player.
He said as a rule of thumb, owners of vehicles aged 10 years to 15 years would have to undergo mandatory roadworthiness inspection under the the ELV policy, which was scrapped in 2009 following public protest.


“Inspection of vehicles can only be carried out at Puspakom inspection centres nationwide but this could be liberalised to include qualified panel workshops too,” he said. He said regulations might be introduced to regulate the after-market industry, including workshops (independent ones or those directly under original equipment manufacturers), tyres and accessories shops, spare part centres (new and used parts) and car dealers.
“We are watching the NAP closely as the automotive industry was left out of Budget 2014,” he said.
Reviewed in 2006 and 2009, the NAP was widely scrutinised by industry observers and experts for not detailing guidelines and strategies of what it had initially set out to achieve, which is to turn Malaysia into a regional player, if not a global automotive hub.
Many are still wondering whether the soon-to-expire import and excise duties exemption on fully imported hybrid vehicles would be continued.
Main hybrid car distributors, UMW Toyota Motor Sdn Bhd and Honda Malaysia Sdn Bhd, are already preparing for the impact of the exemption withdrawal.
Industry observers expect the policy to be energy efficient vehicles centric to attract investments by original equipment manufacturers.