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  • Incentives for hybrids, PHEVs, EVs yet to be finalised

    Today’s launch of the National Automotive Policy (NAP) 2020 featured little in the way of concrete details, with the Ministry of International Trade and Industry (MITI) painting broad strokes regarding its ambitions for the next ten years. Notably, it left out any mention of incentives or tax breaks for electrified vehicles, and when asked, deputy minister Ong Kian Ming said that the minutiae have not been finalised just yet.

    “The incentives will be discussed in the one of the seven roadmaps that we’re rolling out, and everything will be put into context within the Automotive Business Development Council (ABDC) where all incentives are processed together with all the stakeholders,” he said. “So we’re not at the point where we can announce those incentives yet.”

    Prime minister Tun Dr Mahathir Mohamed sidestepped a question regarding whether the government will standardise the incentives currently customised to each carmaker that assembles its vehicles locally. Instead, he simply said that the administration needs to give the public what it wants, and it has to invest accordingly.

    The plan revealed today, an evolution of NAP 2014, features seven roadmaps in the field of Next Generation Vehicles (NxGVs), Mobility as a Service (MaaS) and Industry 4.0. The plan will also incorporate the development of Automated, Autonomous, Connected Vehicles (AACV), lightweight material technology as well as hybrid, electric and fuel cell vehicles. Read more here.

  • Mercedes-Benz Malaysia welcomes NAP 2020’s vision to develop next-gen vehicles, higher automation levels

    The National Automotive Policy 2020 (NAP 2020) was officially launched in KL this morning by prime minister Tun Dr Mahathir Mohamad. It aims to push the country towards becoming a regional leader in automotive manufacturing, engineering and technology, and is very much an enhancement of NAP 2014, expanding on the outlines seen previously.

    In a nutshell, NAP 2020 consists of three directional thrusts and three strategies as well as seven roadmaps/blueprints, which will be implemented to the year 2030. The directions include a focus on Next Generation Vehicles (NxGVs), Mobility as a Service (MaaS) and Industry 4.0, and the plan will incorporate the development of Automated, Autonomous, Connected Vehicles (AACV), lightweight material tech as well as hybrid, electric and fuel cell vehicles.

    A number of car companies have released official statements regarding the introduction of the policy, and Mercedes-Benz Malaysia (MBM) is the latest to do so. In a statement, the brand said it is pleased that NAP 2020 is a positive enhancement to the NAP 2014, as it aims to make Malaysia a regional automotive leader.

    “The development and production of EEVs and NxGV with increased levels of automation is an explicit encouragement by the government on future mobility in Malaysia and we see the NAP benefitting all players in the automotive industry,” said MBM president and CEO Claus Weidner.

    “For Mercedes-Benz globally, Ambition 2039 is our strategic path towards sustainable mobility, and we aim to increase the adoption in Malaysia by delivering sustainable and fascinating mobility to our customers,” he added.

  • NAP 2014 report card – RM10.05 billion investments, 62% TIV EEV penetration, RM58.7 billion local content

    Today marks the launch of the new National Automotive Policy (NAP 2020), which enhances upon the previous NAP 2014. It’s been a long wait for the ministry of international trade and industry (MITI) to finalise and present the latest NAP, but before we look towards what comes next, let’s take a step back and examine what has emerged in the time NAP 2014 was in effect.

    First announced in January 2014, the NAP 2014 was focused on developing Malaysia as the hub for Energy Efficient Vehicles, or EEV. At the time, EEV specifications were revealed for the first time, while customised incentives would be given for EEV-related foreign and domestic direct investments (FDI and DDI).

    At the time, MITI also revealed a number of targets for the NAP 2014, but have any of them been met or even exceeded? We compare the data from MITI’s official NAP 2020 booklet to see what’s what.

    Gross domestic product (GDP) contribution

    According to MITI, local automotive manufacturing has contributed RM48.6 billion to the national GDP from 2014 to 2018. The ministry revealed during the initial implementation of the NAP 2014 that is was targeting automotive manufacturing to account for 10% of national GDP by 2020, but as this year’s GDP figures aren’t out yet, it’s not known if that goal was met.

    Total industry volume (TIV) and total production volume (TPV)

    When the NAP 2014 was announced, the target for TIV was to hit one million units by 2020, which includes passenger and commercial vehicles as well as motorcycles. This goal has been met consistently from 2014 to 2018, with the exception of 2016.

    As for TPV, which accounts for the aforementioned vehicles, the NAP 2014’s target was 1.35 million units by 2025. From 2014 to 2018, TPV hovered between 900,000 and just over a million units, never reaching close to the allotted target.


    The total worth of CBU units that left the country saw a huge spike in 2018 to RM2.08 billion, which is double that in 2017, and marked the end of continuous downward slump from RM1.5 billion in 2014 through 2017.

    Additionally, RM12.1 billion worth of new automotive parts components were exported in 2018, up from RM4.7 billion in 2014, and significantly exceeding the NAP 2014’s target of RM10 billion by 2020.

    Another area of exports is remanufactured automotive parts and components, with the NAP 2014 aiming for RM 2 billion by 2020. However, from 2014 to 2018, only RM523.1 million worth of these products have been recorded, which is a quarter of the intended target set previously.


    Based on MITI’s NAP 2020 booklet, a total of 244,941 job opportunities have been created from 2014 to 2018, which is far more than the 177,520 employment opportunities the NAP 2014 set out to achieve when it was announced. At the time, only two aspects of automotive employment were considered, which are manufacturing and aftermarket.


    As of 2018, there are 405 vendors in the country capable of supplying to OEMs. This is significantly more than in 2014, where only 277 vendors existed. These 405 vendors all meet the Level 3 status of being able to supply parts with quality levels of 96.7% or higher.

    However, out of the total sum, 130 companies are Level 4 vendors with tooling development capabilities, while 55 companies are Level 5 vendors with R&D capabilities. While impressive, they are a far cry from what the NAP 2014 targeted, which was to have 430 Level 3, 330 Level 4 and 180 Level 5 vendors.

    EEV penetration and local content

    EEV penetration has seen a continuous year-on-year increase from 2014 to 2018, with the latter being earmarked at 62% of TIV, or 339,978 units. By comparison, the first year of the NAP 2014 saw just 14% of TIV, or 93,975 units. On a related note, during the same period, RM58.7 billion worth of local content has been used in vehicle assembly.


    From 2014 to 2018, with the NAP 2014 in effect, RM10.05 billion worth of investments have been made, with RM3.64 billion being FDIs, while the remaining RM6.41 billion is from DDIs.

    Technology development

    In the NAP 2014 list of targets, one of the goals set was to establish two automotive specialised design and engineering centres as well as a full-fledged Vehicle Type Approval (VTA) testing centre.

    The latter is still listed as a target for the latest NAP 2020, and can be considered as being unmet. On the other hand, there are now three specialized design and engineering centres. These include the Malaysia Technology Centre, which serves as one-stop centre for IR4.0 human capital development in automotive and connected mobility ecosystems.

    There’s also the Automotive Design Centre that caters to the automotive industry specifically in the areas of design engineering, simulation and prototyping, with any OEM and vendor from various tiers can leverage on the hardware and software available.

    Lastly, the National Emission Test Centre is an independent entity and recognised as a national laboratory owned by the Malaysia Automotive Robotics and IoT Institute (MARii), an agency under MITI. It features testing facilities dedicated to measuring vehicle emission pollutants and fuel consumption, and is the most advanced emissions testing facility in the ASEAN region, with the ability to measure up to the Euro 6d emission standard – WLTP.

    There you have it, the outgoing NAP 2014 has had some hits and misses while in effect for several years. With the NAP 2020 now implemented, there’s a whole new list of targets, which you can check out in our separate post. Do you think these goals are feasible?

  • NAP 2020 – MyEVOC welcomes the progression towards Next Generation Vehicles (NxGVs) in policy

    The government’s plan to focus on the development of Next Generation Vehicles (NxGVs) in the just announced National Automotive Policy 2020 (NAP 2020) has been welcomed by the Malaysian Electric Vehicles Owners Club (MyEVOC).

    “We welcome the continued push towards energy-efficient vehicles (EEV) and their evolution towards always-connected, information-rich personal transport vehicles, which has shown great promise in other markets,” MyEVOC president Datuk Shahrol Halmi said in a press statement.

    The proposed standards to be developed for NxGV will include the establishment of an Electric Vehicle Interoperability Centre (EVIC), which will develop an EV charging protocol as well as energy management for the EV ecosystem.

    This, MyEVOC said, will be especially useful for EV charging equipment manufacturers to ensure that their devices are fully compatible with all new EV models as they are made available in Malaysia. It added that EVIC will also help to highlight the positive impact of having EVs as energy storage devices that can deliver energy back into the grid when needed, therefore reducing the overall cost of electricity for all consumers.

    “With the NAP formalised, we hope to see even greater coordination and integration between government agencies, especially in moving towards lowering carbon emissions from the transportation sector, which will need to involve decision-makers from the ministry of transport, ministry of energy, technology, environment and climate change (MESTECC) and , the ministry of international trade and industry (MITI), among others,” Shahrol added.

    “We are grateful to be able to engage with Malaysia Automotive, Robotics and IoT Institute (MARii) since we were formed last year and MyEVOC is looking forward to contribute more of our members’ real-life user experiences to other agencies,” said MyEVOC deputy sec-gen Zuhril Azhar.

  • Proton lauds NAP 2020’s vision for next-gen vehicles

    The National Automotive Policy 2020 (NAP 2020) was officially launched in KL this morning by prime minister Tun Dr Mahathir Mohamad. It aims to push the country towards becoming a regional leader in automotive manufacturing, engineering and technology, and is very much an enhancement of NAP 2014, expanding on the outlines seen previously.

    In a nutshell, NAP 2020 consists of three directional thrusts and three strategies as well as seven roadmaps/blueprints to be implemented to the year 2030. The directions include a focus on Next Generation Vehicles (NxGVs), Mobility as a Service (MaaS) and Industry 4.0, and the plan will incorporate the development of Automated, Autonomous, Connected Vehicles (AACV), light weight material tech as well as hybrid, electric and fuel cell vehicles.

    Local carmaker Proton is lauding the government’s push in transforming Malaysia to a hub for the development and production of NxGVs and critical components. In a statement, the carmaker says that the new strategy presents opportunities to automotive industry stakeholders to introduce new technologies, while also elevating the skills and capabilities of local vendors.

    Proton says that with its ownership structure (50.1% DRB-Hicom, 49.9% Geely), the company is able to leverage on its shareholder strengths – local ecosystem access via DRB-Hicom and access to new tech via Geely – to seize opportunities presented by NAP 2020.

    “At this early stage however, Proton will continue with its schedule of investing in new products and technologies as well as plant and manufacturing facilities. The company will also continue to work with local vendors and promote investments in new technologies, especially through strategic collaborations to infuse technical capabilities and expand commercial viability,” the statement added.

    “The unveiling of NAP 2020 shows Malaysia is moving towards the adoption of new technology vehicles featuring electric and hybrid powertrains as well as autonomous and connectivity technologies. Proton’s two shareholders grant us access to Malaysia’s automotive industry ecosystem as well as the technologies needed for NxGV models, one of the main thrusts of the policy,” said Proton CEO Li Chunrong.

    “There are still many steps to take and Proton is confident with the correct policies in place, we will be able to contribute towards Malaysia achieving the goals set out in NAP 2020,” he added. More on the NAP 2020 here.

  • February 2020 week four fuel prices – petrol, diesel up

    It’s once again Friday, when fuel prices are announced, and this time around the fourth week of February sees petrol prices take another hike by two sen, while diesel holds station with prices unchanged from last week.

    The Euro 4M grade petrol will be priced at RM2.08 per litre – once again at the capped ceiling rate – while RON 97 petrol goes up by the same margin to RM2.38 per litre. Euro 2M diesel remains unchanged at RM2.14 per litre, holding position four sen below its RM2.18 per litre ceiling price, which means that Euro 5 diesel follows suit with RM2.24 per litre.

    As the case has been last week, the government stated that it will continue to maintain the ceiling prices for RON 95 petrol and diesel at RM2.08 and RM2.18 per litre respectively, should global market prices drive fuel prices upwards.

    These prices remain effective until February 28, when the next fuel price update is announced. This is the seventh edition of the current weekly fuel pricing format for the year and the 59th edition in total for the format, with runs from Saturday until the following Friday.

  • QUICK LOOK: DreamEdge New National Car prototype

    Full Malaysian effort, fun to drive, family friendly, highly fuel efficient, and value for money. Those were some of the terms used to describe DreamEdge’s new national car, which the company claims to be a plus-sized B-segment sedan.

    We managed to catch a glimpse of the prototype today, or at least a portion of its front and rump. According to DreamEdge, the car will get a “modern and futuristic” styling, and all design concept and development will be led by the Cyberjaya-based digital engineering services and consultancy company.

    In terms of powertrain, the car will likely get either a regular internal combustion petrol engine or a hybrid powertrain, but this will be led by technology partner Daihatsu, which confirmed its involvement in the project last October. Daihatsu has no equity involvement, but will merely head powertrain and platform development. It won’t be another Daihatsu rebadge, we were told.

    For timeline, there will be some form of unveiling next month, plus a working prototype is due by mid this year. A market debut is expected in March 2021, with production (contracted) set to take place in the first half of 2022. DreamEdge plans to sell at least 3,000 units of the sedan monthly, or a minimum of 36,000 units over the course of 12 months. Other features include modern in-car connectivity functions, and Advanced Driver Assistance Systems.

  • Honda Malaysia issues 5-9% price increase for 2020 – City up RM4.6k, Jazz up RM5k, CR-V up RM12.7k

    Honda Malaysia has announced that it has increased prices of the Jazz, City and CR-V effective today, February 21. The hikes, which affect all petrol models, range between 5.3% to 9.25%.

    Starting with the Jazz, the lineup now starts at RM75,300 for the 1.5 S (up 7.2%, or RM5,058), rising up to RM81,400 for the 1.5 E (up 6.66%, or RM5,084) and RM88,700 for the 1.5 V (up 6.06%, or RM5,067). The same variants for the City are priced at RM78,500 (up 6.32%, or RM4,664), RM84,600 (up 5.81%, or RM4,645) and RM91,600 (up 5.31%, or RM4,617) respectively.

    As for the CR-V, the base 2.0 2WD retails at RM151,100 (up 9.25%, or RM12,792), while the turbo 1.5TC is priced at RM163,700 for the 2WD model (up 8.42%, or RM12,708) and RM169,500 for 4WD (up 8.15%, or RM12,768). The range-topping 1.5TC-P, meanwhile, now costs RM175,900 (up 7.79%, or RM12,709). As before, Orchid White Pearl is a RM120 option for the Jazz and City and a RM300 one for the CR-V.

    The company said that the price hikes are caused by a review of customised incentives for its completely knocked down (CKD) locally-assembled vehicles, which is different from the earlier-announced revision of excise valuation regulations that were not expected to alter vehicle prices.

    Notably, the list excludes the Jazz and City Hybrid models, with Honda Malaysia saying that it will announce 2020 prices once they get them – although we should point out that these variants already received price hikes in November. It also omits the BR-V, Civic and Accord, perhaps because new versions of these cars are on the horizon (facelifts for the BR-V and Civic, all-new model for the Accord).

    Browse full prices, specifications and equipment for the Jazz, City and CR-V on

  • Volkswagen Mk8 Golf GTI teased ahead of Geneva

    Volkswagen has teased the front end of the forthcoming Golf GTI performance hatchback ahead of its debut at this year’s Geneva Motor Show set to take place next month. Volkswagen does however note that the image is of a ‘near-production concept car’, therefore some changes could apply to the eventual, showroom-ready product.

    As seen in an earlier leaked presentation slide, the eighth-generation Golf GTI wears a darkened, nearly full-width intake section within its front bumper with LED light units at each corner in a chequered pattern. As seen here, a full-width LED crossbar connecting the pair of LED daytime running lights can be specified, and it continues GTI tradition in having the red stripe across its grille.

    The presentation slide from last month also revealed that the Golf GTI will boast of engine outputs starting from 245 PS, earlier reported to be from an updated version of the firm’s EA288 2.0 litre turbocharged direct-injection four-cylinder petrol, which is more than the Mk7-generation car’s 230 PS output with the Performance Package. An even more focused TCR variant will output 300 PS.

    Most trim levels of the Mk8 Golf GTI are expected to become available with a choice of either manual or DSG dual-clutch automatic transmissions, save for the TCR which should come to market with the DSG as the sole choice, as it was on the previous Mk7 car. The Mk8 Golf GTI will continue to offer driver-selectable mode

    The Mk8 Golf GTI will also feature car-to-car communication with other vehicles for improved safety, and it will feature Travel Assist, a system which employs the adaptive cruise control and lane-keeping assist systems to provide assisted driving at speeds of up to 210 km/h. Also drawing from the eighth-generation Golf’s interior is a ‘completely digitalised landscape of displays and controls,’ and naturally, the chequered trim of the GTI’s sports seats will be present as well, says Volkswagen.

    GALLERY: Mk8 Volkswagen Golf GTI TCR spyshots

    GALLERY: Mk8 Volkswagen Golf GTI spyshots

  • Sepang Circuit RM3.32 million court claim allowed

    A sponsorship deal gone sour has resulted in the High Court of Johor Bahru allowing Sepang International Circuit (SIC) a claim of RM3.32 million in unpaid sponsorship fees. The claim arose after M7 Racing, related to the Mutiara Motor Group of Companies, failed to honour the terms of a sponsorship contract.

    From an official source inside SIC, was informed the contract was worth RM6 million across two years. During the contract period, five payments totalling RM600,000 were received from M7 Racing with no further payments, forcing SIC to initiate legal proceedings in January 2020.

    The sponsorship was for the Drive M7 SIC Racing Moto3 championship team for the years 2016 and 2017, during which Adam Norrodin of Malaysia and Jakob Kornfeil of the Czech Republic were primary riders. SIC Racing Team was started in 2014 by Johan Stigefelt and signed Malaysian Zulfhami Khairuddin to ride alongside Kornfeil for the 2015 Moto3 season.


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Last Updated 15 Feb 2020


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