KUALA LUMPUR: The government together with national vehicle manufacturers will provide matching grants of up to RM4,000 to encourage owners to dispose of old vehicles and purchase new national vehicles.
"Cars over 20 years old that are not economical, are at risk of compromising safety," said Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2026.
National automakers Proton and Perodua stand to benefit from this proposal.
Interestingly, earlier in May 2025, Proton had launched the Proton Xchange programme to encourage drivers to trade in their old vehicles and get a RM2,000 overtrade when they register a new Proton vehicle, including the e.MAS 7 electric vehicle.
The programme is being run together with Car Medic Sdn Bhd, an authorised automotive treatment facility (AATF), and is open to all cars regardless of brand.
Proton had set aside a budget of RM4.8mil for the programme which supports the government’s initiative to enhance road safety and promote sustainable mobility.
The pilot programme will run until the end of the year.
Under the Proton Xchange programme, vehicles must also be 15 years or older and deemed to be uneconomical to repair for continued safe usage.
They can be sedans, multi-purpose vehicles (MPVs), vans, 4x4s or lorries, and must meet proof of ownership.
The new Proton vehicle must be registered before end-2025.
The Proton vehicles bought will also get a one-year free road tax.
