The Government is in discussions with two more potential foreign automotive companies who are looking to manufacture energy efficient vehicles (EEV) in Malaysia, according to a report from The Star. The automakers were not named.
If they go through by the end of the year, the deals will be worth more than RM7 billion in investment, and will add to the RM7 billion in investment that has already gone into the industry thus far in 2014.
Currently, a cost-benefit analysis on the companies’ proposals is being carried out by the Malaysian Automotive Institute (MAI) and the Malaysian Investment Development Authority (MIDA), said MAI CEO Madani Sahari.
The study will determine the financial strength of the two companies and their capability to undertake their proposed investment, StarBiz reported.
“Once the cost-benefit analysis is completed, we will present it to MITI and the Finance Ministry for final approval,” Madani told the publication last week at the informal session with the press, in which the news of Euro 5 diesel availability in the country dominated.
If successful, the companies would join Go Automobile Manufacturing (GAM) as on the EEV manufacturing front – in April, GAM became the first company to obtain an EEV licence to assemble Great Wall Motors products locally.
In partnership with Chinese automaker Great Wall Motors, GAM will build Great Wall vehicles for both the domestic as well as export market. Its CKD programme will initially involve two GWM models, the Haval M4 and Haval H6 SUVs.
Both will be built at the GAM plant in Gurun, Kedah, with market rollout expected to be in September. The GAM-GWM partnership plans to export 60% of its production to ASEAN countries – dealer arrangements already exist in Thailand and Cambodia, with operations expected to commence by Q3 this year.
Around RM2 billion will be pumped into the project, out of which around RM700 million will be provided by Chinese investors not aligned to GWM. The project is expected to create 4,000 new jobs in Gurun.
Perodua, meanwhile, has also laid out expansion plans in line with the focus on EEVs, Madani added. Back in April, the automaker had said it was in the midst of submitting its wishlist to the government in terms of incentives.
The carmaker is investing RM3.5 billion in the building of its new Perodua Global Manufacturing plant and to expand its existing assembly facility. Its new Perodua ‘Axia’ Global EEV is due out later this year.
Looking to sell your car? Sell it with Carro.
Damn… that Haval M4 looks good.
Foreign cars are not expensive, even Toyota.
Toyota can’t sell cheap, is because MITI.
Haval M4 can sell cheap or not, is depending on MITI.
Why MITI doesn’t allow the car to be sold cheap?
You know I know everyone know.
Similar concept to condom – Protection.
all we need is a good diesel (euro5) and a good diesel engine…please provide this first then you can talk about making electric or space age engine!
MITI too liberal open up more competition…Nanti penasihat Proton marah baru MITI tau…!
Proton can and should take it. It’d be good if people did actually test drive several cars before they buy one though, and that should include Proton.
I’m more worried about Toyota though. Perhaps they’ll even have to bring in good cars in order to be competitive!
Neh…this news is just to feed hater
Everybody pumping big money into EEV even bumper specialist Perodua.
Where is Proton, sudah pokai kah? Kesiannya. Huhuhuhu
why so low comment level?
i meant low number of comment level usually got minimum 100+ if news related to govt or p1
Puasa bang…
semua kontrol pahala jangan hilang…
kenapa dgn puasa..sy tak mencarut, tak memaki, tak memfitnah..sy hanya bertanya
Bro,
saya bukan tuju kat hang la…
tak paham rupanya…
saya maksudkan diorang yg lain tu tak komen sebab diorang tak nak hilngkan pahala puasa.
semoga paham…
owh..ye ke sori sori
Why you like trouble is it? I notice you love to see people fight.
no that u…look at news article related gud news bout p1 n govt nobody want to comment..but look at article that shows govt of disadvantage
Not many comments because people are busy following young girls overseas and trying to rape them as well as burglary.
Dah lah boleh kahwin empat, sekarang mau rogol pulak.
IF not proton, Malaysia is No.1 car producer in ASEAN.
Malaysia has all the advantage to manufacture car. Try to think out of the box, if we let other maker to handle Proton plant, we may see more positive result. Of course, other maker need to have the power to cost saving and implement product improvement plan without political involvement.
Malaysia Boleh.
I doubt that…i said it before and i say it now..before p1 exist thailand is main ckd hub in asean not boleh..the yr p1 was form until late 80’s boleh become main car producer in asean for short period.. thailand take back that title from 1990 as main car producer in asean till now..if not p1 exist in the 80’s boleh never was a main car producer in asean albeit short one..numbers cannot lie u can check with OICA..i know u guy just thumb down.
talk rubbish. Pure rubbish. This is the analysis of your Mara and Uitm reasoning. Malaysia was always top ckd since the 80s. kzm, I think better you go New Zealand and follow people lah
what was the highest ckd produce car during those yrs..tell to all paultan reader..i oso want to know
Talk and talk and talk and talk
Talk and talk and talk and talk…
I don’t buy it unless I see majority of citizen can by decent car with 3-4 years of loan…
When the buying stop, the killing can too…
Great Wall M4 just got launched on their facebook page today. Looks good. www.gwm.my/M4CompactSUV
gimme tesla motor model s and model x pls..
Not happening.
a) Tesla won’t enter a market unless they have set up the infrastructure to go along with it.
b) I doubt they could make the Model S (at least in parts) in Malaysia, and that’s the requirement for tax discounts.
c) They can’t produce the cars fast enough. Why bother with Malaysia? A country that shies away from modern technology (i.e. 4 speed rather than 6 speed gearbox, petrol rather than hybrid, …).
Why aren’t there any comments on how funny the shot of that bloke is? I can’t help but lol a bit whenever I see that pic..
Berjaya Auto is next in line to receive the EEV license for its investment at the former Inokom plant. Can’t wait for the Mazda3 1.5 Skyactive CKD to be priced at below RM90K, as reported by investment bank research reports. My only hope is that they truly follow the Japanese manufacturing standard and quality control. Perhaps no more dashboard-rattling & mediocre fit-finish from Japanese branded CKD cars after this (City, Almera, etc).
With almost no regulation or requirement for one to acquire an ‘EEV’ liscence or whatever the guv call this, and even worst, no outline on how much the government can help, no set standard or anything, this is nothing more than a ‘I help u, u help me programme’. The term EEV stands for energy efficient vehicle or vehicle that consume energy efficiently to either run or produced…..eg: hybrid cars, efficient clean diesel cars or even just small displacement car. Looking at the Havel M4, there’s nothing stopping Toyota, Honda, Hyundai or even volkswagen from getting a liscence for this mainstream car, they are all CKD and having small displacement engine with relatively efficient running cost, there’s nothing that seperated the Havel M4 or the upcoming perodua from Almost every other A-B Segmant car. in fact why not just save the hassle and lower all taxes on car.
With no clear outline on what requirement, I believe this is more on who can shove more money under the table of the MIT. EEV should be change to the ‘I help u, u help me’ plan.
I think the EEV license comes into play when new capital expenditure is involved like in the case of GAM and P2 (both building new factories).
Basically the policy is as such to bring in more capital expenditure like higher level of manufacturing, instead of just assembling built up parts.
So I guess people are bound to benefit from this in one way or another (more jobs, more locally produced vehicles that otherwise would’ve been CBU or something)
Than I belive the naming is wrong, it should’t be called EEV. The point I’am getting is that they are not remotely transperent of the EEV plan at all. Its dissapointing.
Just like the case of merc S class hybrid, need capex& infra investment to qualify for eev. With that investment, gov is expecting transfer of technology & R&D at the local stage.
Perodua & GAM benefits by setting up new plants.. same with berjaya auto with upgrade capacity of former inokom plant. Without new capex commitment its difficult for Mida to justify, perhaps risk of unsustained capital inflows. So, Honda is depending on its own cost efficiency to reduce its price since their ayer keroh plant max. output capacity still remains the same as b4.
well.. thats the dark side of NAP EEV I guess. New entrants & bargaining power of suppliers are indeed real threat, as what strategy professor michael porter claimed.
we really need tesla in malaysia
they assemble here in Kedah, or they manufacture in Malaysia as well?
Yuck…Chinese car.
yuck ur @ss… how about proton?
start earlier than the chinese and korean until now still crawling slower than turtle…safety sucks, quality sucks, design sucks… only lure people by pasting that stupid lotus handling… everything cheating people including that sales figure also… even dare to say increase price to become top quality car manufacture… WOOIIII !!! TAK SENDIRI RASA MALU KA…