Prior to the introduction of the national car project in the 1980s, cars were relatively cheap, mainly imported, and we used to drive cars which were 2 liters or more. The most popular luxury car in the 1970s was the Mercedes S280, a 2.8 liter engine. My dad had the Colt Galant 2 litre, which was a rebadged Mitsubishi Lancer, and the car that became the Proton Saga. To be blunt, the first 1.5 litre Proton Saga was an inferior copy of the Colt Galant. But by the time that was introduced around the mid 1980s, the Colt Galant had been priced out by the new taxes. Because of the Proton project, Mahathir imposed 200% import tax on cars, and hiked up the road tax for large engines. This was to give the below 2 litre Proton a better differential in pricing. Everything was done to make Proton a success. Imported cars were squeezed out. The irony is that in the later 2000s, Proton had to pay a fine of a few thousand to Thailand for every Proton. This was because of the introduction of the ASEAN free trade zone for ASEAN built cars. Many car companies had chose Thailand (Ford, Japanese) to built their cars for export to ASEAN and Australian market. ASEAN built cars were supposed to enter Malaysia without any higher tax than those taxed on Proton cars. But Malaysia insisted on keeping the tax differential to protect Proton. So they had to pay a fine for every Proton sold in Malaysia to Thailand. Genius!
呢句话都好適合用於啲格硬充四火downsized難民spec易手水貨歐羅車跳樓盤啲中下階華人用。我哋由90年代落盡正廠件到今日 幾乎每部 "豪华"車都裝住充貨架包圍，連鮑魚夾哋安全性能件都寧願充Brembo made in China，真正唔夠錢用，日日計餿數嘅喺佢哋正啱。最少人哋“马来仔”買唔起都唔曉充，件件都堅嘢。吾係“我哋对车的文化没有像两位说的那么高崇”，係呢位阿生你唔識啫。 70年代就Alfa，MG，Austin Healey，Truimph同【得勝】Triple S ，到Yamaha機器盛行時哨牙仔同AE就玩唔起啦，但KP同KE Corolla短軸式橋跑都仲有嘅。到咗80年度末 【子彈仔】，【斬尾】同【大電視】啲大細TEC，GTZSC，廿嘩佬又咪係華人帶頭改先？90年代就吾洗講啦。所以所謂嘅 “街头战士”係真抽得嘅，因為真正追求駕駛樂趣嘅人係唔會同你講品牌型象咁膚淺。正是因為呢度對嚴證嘅規例寬鬆，容許咗好多機器容量比車身容納度大几碼嘅配合輕鬆到出到牌合法上到街。
The main reason for the proliferation of Proton cars in Malaysia was due to the tax regime which favoured Proton cars and slapped a 200% import tax on imported cars from the 1980s onwards with the formation of the national Proton car industry. That was lowered over the years but the tax regime still favours Proton. Further, despite the ASEAN economic integration measures which only allows a minimum tax on imported products from fellow ASEAN nations, the tax regime was not changed much leading to the Malaysian government paying a few thousand Ringgit Malaysia to Thailand for every Proton car unit which is sold in Malaysia. Thailand has the largest automobile car assembly and production lines in South East Asia, and it had been expected by Thailand that they would be to flood Malaysia which Thai made cars (but of European and Japanese marques) after the economic integration. However, as Malaysia refused to bend their tax regime, they ended paying the fine for every Proton car sold in Malaysia to Thailand. Not many Malaysians know this because it was not well publicised in Malaysia for obvious reasons.
First and foremost, welcome to Malaysia. Below are some reason why you see so many Local car 1. Thanks but no thanks on the Government protectionism toward Proton and Perodua that push to non-National car price to higher mark 2. Quality Proton (specifically) not so so good (everyone owner will tell you). Famous with power window failure. 3. There is no more National car for Malaysian, as Proton acquired by Geely and Perodua majority stakeholder is Daihatsu (therefore no Daihatsu car in Malaysia) 4. If compare the car price of P&P locally with Japan, our car prices still expansive. 5. Car displacement that below 2000cc is well acceptable due to road tax. 6. Foreign new CBU car price tax around 150% to 300% tax and duty. While local foreign CKD slight cheaper but quality is compromise like Honda 7. You need an AP in order to import new or used car to Malaysia. This is not applicable for most Malaysian but control by few AP mogul. No like Hong Kong can freely import used car from Japan. 8. Malaysian also fondly on Recondition car (used import car from Japan or UK), since the price is far cheaper than new car. This most applicable to luxury or non-selling model in Malaysia. Hope this give you some background. Those Malaysian if have more budget their will go for Honda and Toyota.
