In case you missed it, the all-new 2023 Toyota Innova Zenix has been launched in Malaysia. Prices for the fully imported (CBU) Innova Zenix start from RM 165,000 to RM 202,000 for the 2.0 V variant and Hybrid (2.0 HEV) variant respectively.

Being fully imported from Indonesia, the Toyota Innova Zenix is subjected to the maximum applicable excise tax.

And due to our duty structure, which relies on formulas tied to engine capacity, the naturally aspirated Innova Zenix (with a 2.0-litre engine) is also put at a disadvantage compared to the turbocharged Proton X90 (with a 1.5-litre engine), which is priced from RM 123,800 to RM 152,800.

However, the situation varies for buyers in the duty-free regions of Langkawi and Labuan. There, the 2023 Toyota Innova Zenix (RM 106,000 - RM 130,000) is actually cheaper than the Proton X90 (RM 116,100 - RM 144,600).

So how is the Toyota Innova Zenix cheaper as it touches down in Malaysia than the Proton X90 when it leaves the Tanjung Malim plant?

It's all down to economies of scale. From a production efficiency perspective, local assembly doesn't offer significant advantages unless the annual car production exceeds 200,000 units. Lower volumes result in higher costs per unit.

Manufacturing vehicles at a large-scale, high-efficiency factory is always more cost-effective compared to a smaller, low-volume plant, which our local production plants are. However, our tax system distorts this logic by imposing penalties on imports.

That's why the Indonesia-assembled Toyota Innova Zenix is priced lower than the locally-assembled Proton X90, but once taxes are factored in, prices are artificially adjusted.

Also read: Want cheaper cars in Malaysia? Best solution is to pay higher fuel prices

Although being a CBU model has led to increased prices due to taxes, budget-conscious shoppers should take note that UMW Toyota Motor will still provide the older IMV ladder-frame Toyota Innova as an alternative. These are available starting from RM 133,880 (2.0 G) and RM 141,880 (2.0 X) respectively.

Also read: Why is the 2023 Toyota Innova Zenix CBU only, and should you wait for CKD versions? UMWT explains

To recap the Innova Zenix, it’s offered in two variants, both with Dynamic Force 2.0-litre engines: one without any electrification (2.0V) and, in line with the company's commitment to multiple pathways, a full-hybrid powertrain for the range-topping model (2.0 HEV).

The engine in the 2.0 V churns out 174 PS and 205 Nm, routed to the front wheels via a CVT. Meanwhile, the 2.0 HEV has a combined system output of 186 PS and is paired with an e-CVT automatic transmission, sent to the front wheels as well.

Both variants are equipped with the Toyota Safety Sense 3.0 suite of ADAS with Auto High Beam (AHB), Road Sign Assist (RSA), Lane Tracing Assist (LTA), Lane Departure Alert (LDA), Pre-Collision System (PCS), and Dynamic Radar Cruise Control (DRCC, full speed).

Also read: Comparing Dynamic Force vs hybrid, which is the 2023 Toyota Innova Zenix variant for you?