SUBANG JAYA (Aug 18): Proton Holdings Bhd is seeking an extension of 100% import and excise tax exemptions for complete built-up (CBU) electric vehicles (EVs) beyond 2023, to build a robust EV industry in the country, according to chairman Datuk Seri Syed Faisal Albar Syed AR Albar on Thursday (Aug 18).

“As we all know, we now have 100% duty exemption for CBU EVs until 2023, and until 2025 for CKD (complete knocked-down) 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,” Syed Faisal said here in a speech during the signing ceremony of a general distribution agreement between Proton and Smart Automobile Co Ltd.

Under the agreement, Proton and Smart will work together to introduce new energy vehicles to the ASEAN market.

Proton said the agreement will see both parties collaborating via Proton Edar, which will be the importer and distributor of Smart cars in Malaysia and Thailand.

Syed Faisal said Proton will gain from selling and servicing Smart cars, as well as managing an EV business, and such experience will help the carmaker develop its own EVs in the near future.

He said Proton will play a role in developing Malaysia's EVs industry. “We will, however, need help to do so, especially from the government, in promoting this generation of new vehicles," he added.

“While it is a commercial decision to sell Smart EVs, we believe this business decision will benefit not only Proton and Smart but, most importantly, our customers.

“The benefits are clear, as Proton and Smart will be able to expand their customer base, with a new revenue stream from more affluent and younger buyers in Malaysia and exports to Thailand, besides expanding the range of offerings in other markets,” Syed Faisal said.

Proton deputy chief executive officer Roslan Abdullah and senior director of corporate strategy and risk management Yusri Yusuf also fielded reporters' questions after the signing ceremony.

Roslan said that under the general distribution agreement, Proton is targeting to sell between 800 and 1,000 Smart EVs a year.

He, however, declined to specify the price of each Smart EV in Malaysia, where the premium product is expected to be launched in the fourth quarter of 2023.

As such, Roslan said it "is difficult that we could see [the price of each Smart EV at] below RM150,000."

He said Proton had requested for the Government to consider extending the 100% import and excise tax exemptions for CBU EVs beyond 2023, so that buyers in Malaysia can enjoy the Smart EV "at a reasonable and affordable price”.

Roslan, confirming that the Smart EV will not be rebadged as Proton cars, said the carmaker is expected to launch the EV in Thailand in the second half of 2024.

Meanwhile, Yusri said Proton is engaging with seven to eight operators of EV infrastructure, which involves charging networks for public charging services and personal use at home.

“We are working very closely with these companies to see what are the areas that we will be able to start first,” he said.

According to him, Proton will invest in EV charging networks, and establish its own EV charging system for both private and public use.

He said Proton's plans include installation and maintenance of EV charging facilities for home use, and partnering local companies for public charging services.

Proton is a 50.1%-owned subsidiary of DRB-Hicom Bhd.

China-based Zhejiang Geely Holding Group Co Ltd owns the remaining 49.9% stake in Proton.

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Proton finalises deal to sell smart EVs in Malaysia, Thailand