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Proton seeks extension of full import & excise tax exemption for CBU EVs

SUBANG JAYA: Proton Holdings Bhd is in talks with the government for an extension of full import and excise duty exemptions to import CBU electric vehicles (EVs) into Malaysia, which will expire end of next year.

Deputy chief executive officer Roslan Abdullah said this was in line with Proton's target to sell 800 to 1,000 smart Automobile Company's EVs per annum under the general distributorship agreement signed today.

Under the agreement, Proton aims to bring the smart EVs into Malaysia as soon as the early fourth quarter (Q4) of next year.

"We have put forward the request for the government to consider the extension as the announcement was only made last year.

"We are asking the government to give us a chance especially to allow Malaysians to enjoy the smart EVs," he said after the signing ceremony here today.

Proton chairman Syed Faisal Albar said the company would play a role in Malaysia's EV industry as well as help the country achieve the carbon neutrality target by 2050. 

"Together with our other initiatives, such as the double-sided solar-powered panels in our Tanjung Malim plant.  

"We will however, need help to do so especially from the government in promoting this generation of new vehicles.

"As we know we now have 100 per cent of duty exemption for CBU EVs until 2023 and until 2025 for the CKD electric cars. 

"It is an excellent way to split investment. And we thank the government for this. 

"But for the benefit of building a robust EV industry, we humbly request that this exemption be extended by the government," he added.

Proton today formalised the deal to sell and service vehicles from smart in Malaysia and Thailand by signing a general distributorship agreement, paving the way for the introduction of new energy vehicles by the national carmaker.

Proton chief executive officer Dr Li Chunrong said the agreement marked a big step for the company's entry into the new energy vehicle market.

"The first phase of business with smart is focused on retailing but it provides us with valuable knowledge and experience on how to service and charge EVs and how to transform the way we interact with our customers.

"The move into this market segment will also help drive Proton's move towards being more environmentally friendly in all facets of our operations as we work to help Malaysia achieve its carbon neutrality target by 2050," he said after the signing ceremony here today.

Besides retailing, Proton also announced its intention to invest in a charging network, collaborating with a local charging provider as well as to provide and install domestic units for customers who intend to charge their vehicles at home.

Another facet the company is exploring is using its entry into the market segment to attract young talents.

With the rapid shift in job preference for new workers, Proton said it would use its long-term plans for sustainability and energy efficiency as well as increase its ESG scores to appeal to the next generation of automotive industry workers.

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