KINIBIZ CIMB Research expressed its disappointment of what is and what is not in the National Auto Policy (NAP) 2014 and rated the sector as neutral with Edaran Tan Chong Motor Holdings remaining its top pick of the sector with an add recommendation.

Unveiled  yesterday , the main initiative of NAP 2014 aimed at making Malaysia the regional hub for EEVs, which will see the government providing soft loans of RM2 billion and issuing three to four EEV manufacturing licences by 2018.

To kick-start the EEV programme, the exemption of excise duties and import taxes for completely knocked-down (CKD) vehicles will be extended till  Dec 31, 2015  for hybrids and  Dec 31, 2017  for electric vehicles.

Beyond those dates, the exemptions will be determined based on the strategic value of what the CKDs bring and their respective investments.

The exemption of duties for hybrid completely built up (CBU) vehicles ended on Dec 31, 2013, but CBUs imported last year and sold in this year will still be exempted from tax and duties.

For the complete article go to KiniBiz .