2010 National Automotive Policy (NAP) Highlights

Seow Yaohan | November 3, 2009

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2010 National Automotive Policy (NAP) Highlights

First introduced back in 2006, the National Automotive Policy (NAP) has now been updated to keep up with the times. Below are the highlights of the new policy:


  • All duties and taxes on CKD and CBU vehicles remain unchanged.
  • Franchise AP system to be terminated by December 31, 2020.
  • Open AP system to be terminated by December 31, 2015.
  • RM 10,000 will be collected for each Open AP, starting January 1, 2010.
  • AP holders will be audited twice a year.
  • The Customs will maintain an official price list for used CBU vehicles to prevent under-declaration of the prices of parallel imported vehicles.
  • Import of used vehicles will not be allowed after 2015.
  • Import of used automotive parts to be banned from June 2011.
  • Incentives will be provided to encourage the development of local automotive parts.
  • Mandatory annual comprehensive inspection for vehicles aged 15 years or more before road tax renewal.
  • A detailed plan will be introduced further down the road to scrap old vehicles; vintage vehicles will be exempted.
  • Proton to form a strategic partnership with an established Original Equipment Manufacturer (OEM).
  • Manufacturing Licence (ML) can now be issued for selected vehicle types such as luxury vehicles, hybrid and electric vehicles, trucks and commercial vehicles.
  • No equity condition will be imposed in return for the ML.
  • Incentives, in the form of tax breaks, duties exemption and grants, will be offered to local assemblers and manufacturers of hybrid and electric vehicles.
  • Regardless of the policy, there will be winners and losers. The real question is are there more winners than losers? And who exactly are they? We will be discussing these issues in the upcoming articles.

    AboutSeow Yaohan
    Seow Yao Han strives to bring you the latest and the most comprehensive information on cars available in Malaysia. But it's never easy for him to talk and write cars in this part of the world because what you lust after is often not what you drive home. When the euphoria of test-driving that branded, super-expensive sports car dies down, he just goes home in his less-than-glamorous ride.

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