Automotive Parts and Components / Malaysian Car Industry

Automotive Parts and Components

- The import duty for auto parts and components ranges from 5-30 percent, and is tied to local content regulations.

- The import duty for National Cars (CKDs) is 13 percent.

Taxes:

- A 10 percent sales tax on all vehicles is assessed.

- An excise tax on passenger cars is assessed on a graduated schedule:

- First RM 7,000 x 25%

- Next RM 3,000 x 30%

- Next RM 3,000 x 35%

- Next RM 7,000 x 50%

- Next RM 5,000 x 60%

- Balance x 65%

There is a 45 percent excise tax on MPVs and 4WD vehicles, no excise tax for commercial vehicles, while national cars receive a 50% reduction in the excise tax.

- A road tax of 0.13 to 3.6 ringgit is assessed, based on engine displacement.