The Malay Vehicle Importers and Traders Association (Pekema) members have imported some 4,000 used luxury cars into the country since the government relaxed the National Automotive Policy (NAP).

The government had allowed open Approved Permit (AP) holders to import such vehicles effective June 18, reported The Edge Financial Daily today.

Quoting Pekema president Abdul Hamid Ibrahim, the daily said the association had received a letter from the International Trade and Industry Ministry informing them of the allowance for greater access to the foreign used car market.

"We are only allowed to import only three percent of the total industry volume. And the cars have to be a year old or older," said Abdul Hamid.

Considering that the cap was set at three percent - or 15,600 of the projected 520,000 units for this year - 4,000 cars imported thus far was a relatively high number, claimed the daily.

Abdul Hamid revealed that Pekema was only allowed to import from Asean countries and the three makes imported were Toyota, BMW and Mercedes Benz.

"We do not want to disrupt the market (by importing other models). We are not competing with the likes of Proton or Perodua." he added.

Industry players worried

Announced in March last year, NAP was aimed at making Malaysia a regional hub for vehicle manufacturing, assembly and distribution.

The daily also reported that the latest development had caused unease among exclusive distributors and assemblers of imported cars who are franchise AP holders. They are worried about reduced market shares.

CIMB Research, however, offered the a slightly more positive perspective.

"Although this development is negative for franchise holders as it will eat into their market share, we believe the impact will be mild given that franchise holders are also allowed unrestricted APs.

"On top of that, we believe the consumers may continue to purchase the exclusive brands from franchise holders given the better sales and after service provided by these players." said CIMB Research according to the daily.