A GREENER AND BETTER MALTA - PROPOSALS FOR BUDGET 2022 USED VEHICLES IMPORTERS ASSOCIATION MALTA CAR IMPORERS ASSOCIATION
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PROPOSALS FOR BUDGET 2022 A GREENER AND BETTER MALTA USED VEHICLES IMPORTERS ASSOCIATION MALTA CAR IMPORERS ASSOCIATION
02 Budget Proposals 2022 Budget Proposals 2022 03
Used Vehicles Importers Association (UVIA)
The Used Vehicles Importers Association(UVIA) has been registered as an Employers' Association
in terms of the Employment and Industrial Relations Act, Chapter 452 of the laws of Malta on the
13th May 2003. UVIA is the voice of the main used vehicles importers in the Maltese Islands.
In December 2002 twenty-eight car importers got together to form this Association. These were
bad days for them. The Ministry of Transport in Malta was under pressure to regulate their imports.
A legal notice was soon in force demanding that every used imported car should be certified by
an internationally recognised certification agency. This did not deter these importers. Through
UVIA they managed to fall in line with these new regulations. An agreement was signed in Malta,
after various meetings in the United Kingdom, with the Vehicle Certification Agency. (VCA)
To date, the members of UVIA have, within the local market, continuously proved that they are
reputable importers of quality used vehicles.
Malta Car Importers Association (MCIA)
Established in 2021, with the original main aim to address the situations faced by Brexit, the Malta
THE Car Importers Association, represents 75 different companies relating to car imports, specifically
ASSOCIATIONS from the UK.
Collectively, the mentioned Associations give voice to over 130 employers,
who in turn employ over 350 employees within the local industry.
04 Budget Proposals 2022 Budget Proposals 2022 05
The Used Vehicle Market
Across Europe, the Used Vehicle Market is
significantly greater than the New Vehicle
Market.1 For Instance, in Germany, the Used
Vehicle Market is expected to reach €105 Billion
in Gross Transactional Value by 2023. 2
In Malta, until 2020, the Used Vehicle Market
was also significantly greater than the new car
market.3
OVERVIEW
It must also be noted that notwithstanding the indications identified in the foregoing data,
over 95% of electric vehicles were newly registered vehicles whilst only under 5% of such electric
vehicles were used electric vehicle imports.
1
https://ec.europa.eu/clima/sites/clima/files/transport/vehicles/docs/2nd_hand_cars_en.pdf
2
https://www.researchnewstoday.com/germany-used-car-market-value-69485.html
3
https://nso.gov.mt/en/News_Releases/Documents/2021/02/News2021_034.pdf
06 Budget Proposals 2022 Budget Proposals 2022 07
These statistics show how the local Affordability Average Vehicle Age
used vehicle market is not enough
According to official statistics published The Average Car Age in Malta is of 14.9 years according to official statistics published by the
to meet the demand required for
by the World Bank, Malta ranks above EU National Statistics Office. 6
the Maltese Market. Hence, imports
average in terms of car prices. This means that
from other jurisdictions are required.
although the average wage in Malta is below The current figures show that the average car age in Malta is significantly higher than EU Average,
No Member State Index Average
EU average, the average car price is higher which stands at 11.5 as of 2019. 7
Salary (In- than most EU Countries. Such statistics can
dicative)
2018 be shown in the table on the left.4 The average age of car imports by members of the Association ranges from 1 to 5 years, therefore
1 Denmark 155.59 € 5,191.00 such cars would be quite new, especially when compared to others that are currently in the fleet.
2 Netherlands 130.32 € 2,855.00 Higher car prices are mainly attributed to
3 Finland 119.94 € 3,380.00 higher importation costs due to Malta’s
4 Ireland 119.27 € 3,133.00 natural geographical location, the fact that
5 Portugal 119.13 € 1,158.00
vehicles are driven on the left-hand side of
6 Belgium 113.55 € 3,401.00
the road, and other logistical factors.
7 France 113.31 € 2,957.00
8 Malta 110.63 € 1,379.00
Additionally, Maltese residents are faced with
9 Austria 110.51 € 3,632.00
severe impediment of not having the option
10 Italy 110.26 € 2,534.00
to purchase vehicles from other EU countries
11 Luxembourg 108.59 € 4,412.00
12 Germany 108.18 € 3,703.00 as comprised within EU Single Market due to
13 Sweden 105.65 € 3,340.00 the traffic-direction factor.
14 EU Average 104.97 € 1,081.00
15 Croatia 101.25 € 1,081.00 Given the attached statistics, one can highlight
16 Greece 100.56 € 1,092.00 how average Maltese citizens struggle more
17 Slovenia 98.61 € 1,626.00 than other EU Citizens to purchase new
18 Hungary 96.36 € 955.00 vehicles due to their limited reachability to
19 Spain 95.71 € 2,189.00
the prices of new vehicles.
20 Cyprus 94.8 € 1,779.00
21 Bulgaria 92.74 € 586.00
The Used Vehicle Market, therefore, gives
22 Estonia 92.7 € 1,221.00
consumers wider options of vehicles to choose
23 Latvia 91.35 € 1,013.00
from, particularly vehicles manufactured
24 Lithuania 90.53 € 885.00
from EU countries. Such a market enhances
25 Poland 90.48 € 1,102.00
26 Romania 89.15 € 787.00 reachability to average and low-wage earners.
27 Czechia 87.81 € 1,149.00
28 Slovakia 87.22 € 980.00
4
https://www.worldbank.org/en/programs/icp/brief/methodology-price 5
https://nso.gov.mt/en/nso/Media/Salient-Points-of-Publications/Documents/2021/Transport%20Statistics%202020/Transport_
Statistics-2020.pdf
6
https://www.acea.auto/figure/average-age-of-eu-vehicle-fleet-by-country/08 Budget Proposals 2022 Budget Proposals 2022 09
01 A Stronger Budget for EV grants
• The Associations undertake to commit themselves contractually with
the Government, in order to shift their import stock to a growing
proportion of electric vehicles.
• This would facilitate the attainment of the main target of the
Government, that of achieving carbon neutrality by the year 2050, as
stipulated in the Paris Agreement, to which Malta is a signatory.
• Moreover, this would result in having up to 11,000 used EVs, imported
annually and thus, the Government’s target of having 65,000 EVs
vehicles by 2030, would be surpassed by up to 31,000 EVs.7
• This would make Malta one of the leaders in the electrification and
decarbonisation of its fleet.
It is the understanding of
the Associations, that in
order for the Government
MEASURES to achieve its target of
PROPOSED BY changing 65,000 ICE
THE vehicles to EVs by the
ASSOCIATIONS year 2030, a collective
effort on the part of both
Government and used
vehicles importers is
necessary.
7
https://lovinmalta.com/news/watch-malta-needs-to-convert-65000-cars-to-electric-in-nine-years-to-meet-carbon-neutrality-targets/10 Budget Proposals 2022 Budget Proposals 2022 11
03 The abolition of Government grants given
to ICE vehicles
The Associations reiterate the position taken in this document, namely,
that of helping the Government to achieve the commitments it set out.
To such effect, therefore, it is the understanding of the Associations that
any form of grant given to newly registered ICE vehicles is to be abolished
in its entirety.
This would necessitate a two-fold situation, namely, that of:
• Procuring additional funds for the purchase of EVs in lieu of ICE vehicles
• Deterring the public from pursuing any future purchase of newly
registered ICE vehicles whilst cumulatively attaining the goal of
reducing the carbon footprint that the introduction of such vehicles
would have on Malta at large.
02 A collective effort approach in order to
identify the policies to be taken up for the
distribution of funds
The Associations, are, on the basis of their expertise, making themselves
available to the Government once the state provides the requisite details
of the funds intended to be allocated by the Government, and this with
the aim of assisting in the distribution structure. The ultimate aim is to
ensure that all stakeholders within the used vehicles industry, are satisfied
with the distribution structure being affected.12 Budget Proposals 2022 Budget Proposals 2022 13
05 The streamlining of the term 'new vehicle'
in terms of the laws of Malta
Presently, the used vehicle importer is faced with two different definitions
when it comes to the term new vehicle:
• For VAT purposes, new vehicle is defined as any vehicle which includes
vehicles which have up to 6,000kms or/and that have been in use for
6 months;
• For the issuance of grants, 'new vehicle' is defined as an unregistered;
The Associations propose that a uniform definition of what constitutes
a new vehicle is introduced, with the principal intention of streamlining
both definitions.
04 The Installation of charging stations on
association members' premises
The members of the Associations undertake to further assist the
Government in the attainment of the targets it imposed, and this by
issuing directives to respective members in order to, where feasible and
practical, install charging stations on their premises.
The goal here is to further incentivise the general public to purchase EVs
and to cumulatively have adequate electric infrastructure to support such
purchases.PROPOSALS FOR BUDGET 2022 USED VEHICLES IMPORTERS ASSOCIATION MALTA CAR IMPORTERS ASSOCIATION
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