DRB-Hicom, a local automotive group, today called on the government to be fair and consider the interests of all industry players under a new auto policy to be unveiled in June.

"We trust the government will be fair and take into consideration the interest of all players in the domestic automotive industry," chairman Saleh Sulong told reporters at the launch of the 1.5 litre Suzuki Swift model in Malaysia.

Last March, DRB-Hicom signed an agreement with Japan's Suzuki Motor to distribute Suzuki vehicles in Malaysia.

Saleh said DRB-Hicom would also begin local assembly of Suzuki vehicles but the timing of such a move would depend on sales volumes as well as the government's new duty structure.

Earlier this year the government suspended the implementation of a new tax and tariff regime pending a review of its auto policy on concerns that foreign car companies could shelve fresh investment or even relocate operations as a result.

Malaysia, which lobbied successfully for more time to comply with a regional trade liberalization agreement, has promised to cut tariffs on cars made by members of the Association of Southeast Asian Nations (Asean) to 20 percent this year and to five percent by 2008.

The government, however, raised excise taxes on cars and parts sold in Malaysia to 40-250 percent from 30-100 percent last December, effectively nullifying any advantage from the tariff cut for local consumers and foreign rivals of national car manufacturer Proton Holdings, which receives rebates.

The government has said it will announce a fresh auto policy in June.