Carsome Says Long-term Automotive Roadmap Key To Sustaining Sector's Growth

KUALA LUMPUR, Oct 10 (Bernama) -- Carsome has highlighted the need for a clear long-term automotive roadmap to sustain industry growth and investor confidence following the tabling of Budget 2026.

The company said that while it welcomes the measures outlined in the budget, longer-term policy direction would help guide the sector’s development and support Malaysia’s automotive ambitions.

“With tax exemptions for completely built-up (CBU) electric vehicles (EVs) ending in December 2025 and those for completely knocked-down (CKD) EVs set to expire in 2027, greater clarity on excise duty treatment and localisation policies will help sustain investor confidence, allow industry players to plan with certainty, and support long-term industry growth,” said Aaron Kee, the chief business officer of Carsome.

On the government’s plan to address vehicles aged over 20 years, Carsome, an integrated car e-commerce platform, said the measure is expected to strengthen road safety, reduce environmental impact, and encourage proper end-of-life vehicle disposal.

“Malaysia has over 38.7 million registered vehicles as of 2025, many of which are no longer roadworthy and contribute to road safety risks, higher emissions, and inefficient fuel consumption. Furthermore, the lack of disposal incentives has led to many ageing vehicles being abandoned in public spaces, creating public health hazards,” he added.

Carsome said the matching grant of up to RM4,000 introduced under Budget 2026 is expected to encourage owners to dispose of unsafe vehicles while supporting the growth of the automotive sector.

It also noted the proposed introduction of the Lemon Law under the Consumer Protection Act, which it said would enhance consumer confidence and accountability in the market.

“Consumers purchasing high-value products such as vehicles have faced uncertainty when dealing with defects or performance issues,” Kee noted. “With the right policies in place, the Lemon Law will close this gap by clearly defining the rights of consumers and the obligations of sellers, ensuring that buyers have proper recourse when products fail to meet promised standards.” 

Carsome said the government’s allocation of RM7.9 billion for Technical and Vocational Education and Training (TVET), including RM650 million through PTPK, to train over 25,000 individuals in EV, automation, and automotive technology, would help build the skilled workforce needed for the industry’s future.

-- BERNAMA