The Mirror Image Of Myself

AP And Excise Duty: The Primer

Posted in Automobiles, Notes by zenmaster on November 19, 2006

For new cars, AP can be obtained by the authorised importer. AP is FREE! Any kinds of AP is free BUT only REGISTERED/APPROVED companies/personal can obtain them!

Once obtained, they sold it for at least RM10k as high as RM50k.

For CKD (stands for Completely Knocked Down) cars, 40% of the car is imported (at most 60%) and at least 40% to 60% is locally made parts. That’s why you’ll see CKD cars are cheaper than CBU (Completely Build Up) cars.

CKD tax structure is completely different from CBU.

OK, let’s Hyundai Accent as an example. Mostly are CKD units. only those 1st gen are CBU units. let’s say that :

CKD pack is RM10k
Tax on CKD pack is 40% which comes out to RM4k
60% local parts will cost at least RM10k.
factor in the Excise Duties which is about 40% of cost price = RM9.6k.
plus labor/manufacturing cost maybe around RM5k per car

So COST price to get the car out of factory will be about RM39k.

Then there’s storage charges + transportation charges.

Also, the Selling Price must be government approved price. It can’t be lower than any Proton and Perodua. This is it.

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