Monday, April 4, 2011

How to get more hybrids on the road

The government has made a step in the right direction last year when they decided to waive excise duties for all hybrid cars in Malaysia. This means that hybrid cars will cost about 30% cheaper than they were compared to last year, and yet, I still have not seen an explosion of hybrids on the roads yet.

So is there an issue when? People used to complainabout hybrids being too expensive. Now that theya re much cheaper, why are there so few on the roads? Maybe people are apprehensive about these cars, and how much maintenance it will cost them over 10 years.

Okay, this I understand. So now, how should the government go about encouraging more hybrid cars to be on the road, and at the same time, lower pollution?



Jeng jeng jeng...

I think I've got an answer!

The government can encourage the corporate sectors to change their entire fleet of company cars to hybrids! How?

Maybe by lowering the selling price by decreasing the import tax on foreign parts of the cars. Maybe by giving them tax exemptions (lower or minimal road tax).

Maybe by increasing depreciation rates for such vehicles from 20% per annum to 25% per annum(which would mean the cars are fully depreciated after jsut 4 years)

Companies would stand to gain a lot more as well if they change their fleets to hybrid cars because usually they will also be giving petrol allowances to company car owners.

When people are given petrol allowances, this will lead to very inefficient driving behaviour by the drivers themselves. Inefficient driving means higher fuel costs incurred by the company.

By switching to hybrids, they will stand to save at least 40-50% on petrol costs because, these cars will be slightly under-powered, and hence not able to be driven in efficiently.

Drivers will then be forced to drive more efficiently than they are used to. Driving efficiently also usually means lower accident rates as being efficient means less speeding and definitely less reckless driving (pedal to the metal).

Lower mortality rates will be achieved on the roads, also because hybrids comes with much better safety features than our average Malaysian company cars.

With the 4 year depreciation, companies are able to dispose of these vehicles sooner than expected and any proceeds from the sale of these cars will be deemed as income to the company.

Hence, a big 2nd hand market will be created for hybrids, and more people will be driving them on the roads as fully depreciated company cars are sold at a much lower price than privately held sellers of cars.

In the end, all I can see is a win-win situation for the government, the public as well as Mother Earth if this plan is put into the works.

Seriously, give this a thought.



Boodyboy, out!!!

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