Mercedes-Benz Malaysia hopes the government will introduce a fuel efficiency or low carbon emission-based tax in the upcoming National Automotive Policy (NAP).

According to Business Times, president and chief executive Roland Folger said such taxes will enable Malaysia to become an automotive hub for high quality vehicles and create a cleaner environment.

"Our ability to fully achieve our aspirations and implement sustainable mobility to its optimum level, particularly in Malaysia is highly dependent on the support system available with the right infrastructure," he said after the brand's briefing on 'The Road To Emission-Free Driving'.

The two crucial components in the effective implementation of sustainable mobility, said Folger, are the improvement of fuel quality and proper application of a tax incentive structure for 'True Energy Efficient Vehicle'.

In terms of fuel quality, he hoped the government would upgrade the current Euro 2 diesel to Euro 4. 

The upgrade would enable Mercedes-Benz Malaysia to import its new hybrid models into the country.

Folger said the introduction of new hybrid cars was already in the short- to medium-term plan as the company had set aside RM250m for the import and to enhance its distribution network for the locally assembled CKD models that are available in Malaysia.

"We are discussing with the government on matters related to tax incentives, upgrading fuel quality and proper infrastructure to enable Malaysia to become an automotive hub," he said.