Import duty imposed on built-up hybrid vehicles should be removed, the Malaysian government has said. It also plans to halve excise duty applied to these models for about 18 months.
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Vehicles must also comply with the United Nations’ definition of hybrid vehicles, have an engine capacity of under two litres and that engine must comply with Euro emission rules.
Cars must also be certified to achieve not less than a 50% increase in city fuel economy or not less than a 25% increase in combined city-highway economy compared with a model with a petrol engine while carbon monoxide (CO) emissions must be less than 2.3 grams per kilometre (g/km).
Malaysia increased the price of fuel earlier in the year to offset the surging cost of crude oil and consumers have already begun to buy more fuel-efficient vehicles as a result.

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By GlobalData