Autos Update: IMPORT duty removed for vehicles from Asean countries under AFTA

The government is planning strategic joint ventures between Proton Holdings and original equipment manufacturer(OEM) in a move to increase the national car maker's long-term competitiveness, International Trade and Industry Minister Datuk Mustapa Mohamed said.

On duty for cars imported from Asean countries, Mustapa said it would be abolished on January 1, 2010 under the Asean Free Trade Agreement (AFTA). Import duties would also be reduced or abolished under the Free Trade Agreements which the government has negotiated or signed with several countries.

More reading: TheStar
Duty structure (from MAA): Here

The conclusion from CIMB research test drive of Perodua’s new MPV, the Alza, is that it should expand the MPV pie and not eat much into the sales of other MPVs except Toyota Avanza. Considering the size, pricing and capacity of the Alza, we think that the Avanza 1.3L and 1.5L are likely to be the models more affected by Alza’s launch. The Alza should not pose head-on competition for Proton’s Exora as it is not as spacious as the Exora and targets a somewhat different market segment.