Honda Malaysia launched the e:N1 BEV today and the automaker also confirmed that there would not be a locally assembled (CKD) unit of the car in the nearest future. The reason for this is due to the government’s decision to only extend the tax exemption for CKD EVs to 2027. This policy has raised many concerns and questions among car manufactures, the company added.
This concern was also raised by the Honda Malaysia’s President and Chief Officer, Sarly Adle Sarkum, during a press conference after the e:N1 launch earlier today. According to him, the government should extend further the tax exemption and incentives for EVs to be locally assembled beyond 2027.
Sarly added that automakers need more than five years to see a return on their investment if they were to invest in the CKD programme. However, since the incentives and tax exemption are only available until 2027, it seems to be a risky decision for the car manufacturers.
He also added that without support from the government, it will be tough for the Japanese automaker to initiate a CKD programme in Malaysia. “Incentives are crucial not just for Honda but for the entire automotive industry,” Sarly told reporters
The same concern was expressed by Bermaz Auto’s Group CEO, Dato’ Francis Lee, during the launch of the Xpeng X9. According to Wapcar, the Chinese automaker has plans to initiate a CKD programme for one of the models, but they are still waiting for the government’s policy on CKD. On the other hand, the tax exemption and incentives on completely built units (CBU) EVs will be ending this year.
This means the current price of the Honda e:n1, set at RM149,900, is likely to increase next year. Such price hikes could slow down EV adoption in Malaysia and potentially deter prospective buyers from making the switch.
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