Today our government has decided to help National car maker, Perodua and Proton (How about naza? hmm..) in applying auto scrapping scheme where you can trade in your 10 years old which still function to get discount RM5k to buy a new car. Anyway, is it a good move? In my opinion, it is absolutely yes. Coz i have an old car Mistubishi Tredia 25 years old which is still functioning and can be exchanged to get the discount.. walla.. =) Below are the details about the auto scrapping policy.
TRADE IN / EXCHANGE YOUR OLD CAR TO GET DISCOUNT RM5000 TO BUY A NEW CAR – AUTO SCRAPPING SCHEME
The Malaysian Automotive Association (MAA) expects the positive impact of the auto-scrapping scheme to be felt within three months.
“It is a good move. The scheme will help the industry to improve sales amid unfavourable consumer sentiment due to employment market uncertainties,” MAA president Datuk Aishah Ahmad told.
The government today announced that it will assist in the auto-scrapping scheme for Proton and Perodua.
Under the scheme, a discount of RM5,000 will be given to car owners who trade in their cars, which are at least 10 years old, for the purchase of new national cars.
Aishah said that market players were still expecting further assistance from the government in order to improve sales and stimulate the industry.
“The scheme will be more meaningful if it is applicable to other car brands as well,” she said.
MAA expects total vehicle sales to drop by 12.4 percent this year to 480,000 units from 548,115 units last year due to the full impact of the global financial crisis despite the carried-over orders from the strong performance in 2008.
The passenger and commercial vehicles segments are expected to decline 12.2 percent and 14.7 percent respectively.
Aishah said MAA also welcomed the government’s decision to provide an additional allocation of RM200 million to the Automotive Development Fund to assist the auto industry and vendors as well as to establish the Automotive Institute of Malaysia.
Proton Holdings Bhd says that the government’s proposed car scrapping scheme could help boost car sales and rejuvenate the local automotive industry.
The global and local automotive industries are facing one of the most challenging periods in recent history with buyers being cautious amid the global economic crisis, the national car maker said in a statement, Tuesday.
Proton chairman Datuk Mohd Nadzmi bin Mohd Salleh said the government’s plan, announced under the second economic stimulus package tabled today, was timely and would positively impact the industry.
“We need every bit of help from the Government during this difficult period to ensure its survival as close to 200,000 people are directly and indirectly linked to the automotive industry nationwide,” he said.
The government today announced the scrapping scheme that would allow car owners to exchange their old registered cars, which must be at least 10-years old, in return for a discount of RM5,000 when buying a new national car.
Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the scheme was also an important tool in the automotive industry’s environment management.
“It could help the industry to dispose old cars more efficiently and responsibly whilst protecting the environment.
“Malaysia will follow the footsteps of other countries like Spain, France and Italy. The UK (is also) contemplating the implementation of such a scheme in the near future to spur car sales,” he said adding that Germany recently saw an upturn in car sales when the scheme was introduced.
Syed Zainal hoped that financial institutions will also play their role to ensure the effectiveness and successful implementation of this government-led initiative.
Among the terms and conditions to qualify for this scheme are that the car has to be registered with the Road Transport Department in the Peninsular Malaysia and that it must be operational and functional, he said.
“Once surrendered, the car cannot be returned,” he added.