Govt has no plan to introduce end of life vehicle policy


The government is not planning to introduce the End of Life Vehicle (ELV) policy, despite the auto market having achieved its maturity level.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said consumers and the public are not supportive of the idea and a comprehensive study is needed before any further action on the matter.

“(Since) the industry is supportive of the ELV idea, I had made the announcement in the first NAP (National Automotive Policy 2006).

“But due to public dissatisfaction, the government had to retract the idea (ELV),” Mustapa said after officiating the Kuala Lumpur International Motor Show (KLIMS) 2018 yesterday.

Under the NAP, 2.7 million passenger vehicles aged 10 years or older were recorded in 2006.

The high number of old vehicles had driven the government to consider introducing the ELV policy.

The government also mooted the idea to introduce mandatory annual inspections as a requirement for road tax renewal for all vehicles exceeding 15 years old.

The proposal, however, did not materialise due to public objection.

Mustapa also said the automotive market would not generate doubledigit growth due to its maturity.

Global research and consulting firm Frost & Sullivan said the auto industry would only grow between 1.6% and 2% from 2017 to 2018.

The group projected that the total industry vehicle (TIV) 2017 would reach 589,209 units.

Malaysia Automotive Association (MAA) has not released the 2017 sales data.

MAA president Datuk Aishah Ahmad said the final figure will be released at the end of the month.

At the same event, MAA inked an agreement with Trade Link Exhibition Services Sdn Bhd (TLES).

TLES has been appointed as the show manager for the event, which is slated from Nov 23 to Dec 2, 2018.

Aishah said the organiser expects the event to draw more than 350,000 visitors.

She said the country’s auto industry has expanded tremendously over the years.

“The TIV has grown leaps and bounds over the last 40 years, from 51,905 units in 1976 to 580,124 units in 2016,” she said.

“MAA has worked with our members and the automotive industry to navigate through some arduous times.”

With the rise in cost of living affecting consumers and the rise in cost of doing business impacting companies, the local automotive sector is expected to face another challenging year.

She said through KLIMS 2018, MAA and leading auto companies hope to re-ignite consumers’ sentiments, define brand presence and refuel the industry.