Malaysia EEV incentives better than Thailand’s – F&S

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Thailand, the regional auto production champ majoring in pick-up trucks and eco cars, is seeking to be a hub for hybrid and electric vehicle manufacturing as well. However, support from the Thai government via incentives is not as strong as that given by Malaysia, says US-based consultancy Frost & Sullivan (F&S).

All three major car producing countries in ASEAN – Thailand, Indonesia and Malaysia – have initiatives for eco-friendly vehicles, but ours is considered the most advanced for energy-efficient vehicles (EEVs), F&S VP for Asia-Pacific Vivek Vaidya told a seminar hosted by the Electric Vehicle Association of Thailand recently.

One good thing about the Malaysian package is that manufacturers can localise EEV production into a variety of car segments including hybrid and electric with small production volumes, the Bangkok Post report stated.

honda-jazz-honda-city-eev-2Malaysia has given EEV status to models ranging from the Axia to the C-Class; incentives are customised

“Honda has started to localise assembly of its hybrid vehicles under Malaysia’s EEV incentives, while Mazda’s factory there exports the vehicles. That country has stimulated hybrid and electric demand to account for 5% of the 666,465 vehicles sold there last year,” Vaidya said. EEVs accounted for less than 1% of the 881,832 vehicles sold in Thailand last year.

The consultancy’s rep added that while Thailand remained an important regional manufacturing hub and one with the strongest export orientation, the country’s eco-car scheme is focused on production volume and uses the traditional internal combustion engine platform.

The Detroit of the East is used to big numbers, but Vaidya suggests that the Thai government push for hybrid and electric production by providing investment incentives, and not focus on production volume in the initial stage. Waiving import duties on CBU imported units and subsidising prices would be effective in the short term, he said. Don’t be too rigid, in other words.

Mercedes has made the most out of Malaysia’s hybrid incentives – S400h and E300h are attractively priced

Now, it’s easy to confuse the “EEV” term as one used to solely describe hybrids and EVs, but Malaysia defines EEVs as “vehicles that meet a defined specifications in terms of carbon emission level (g/km) and fuel consumption (l/100 km) – EEV includes fuel efficient vehicles, hybrids, EVs and alternatively-fuelled vehicles, e.g. CNG, LPG, Biodiesel, Ethanol, Hydrogen and Fuel Cell.”

That includes non-hybrid, regular ICE-powered cars that are fuel efficient. Such cars that have attained EEV status in Malaysia include the Perodua Axia, Great Wall M4, Honda City and Jazz, Mazda CX-5 and the Mercedes-Benz C-Class, models that vary greatly in size and type. Incentives are customised, not explicitly spelled out.

Separately, companies that locally assemble hybrid models get special incentives. Notable examples of CKD hybrids are the Mercedes-Benz E 300 Hybrid, S 400 Hybrid and the Toyota Camry Hybrid. The just-launched, plug-in hybrid Volvo XC90 T8 Twin Engine will also be assembled locally.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • 30% Free What For??? on Dec 08, 2015 at 3:43 pm

    Whether better of not, Mat Salleh and Japanese will never open their plants in Malaysia anymore. This is evident from the fact that Thailand has become the Detroit of Asia.

    Mat Salleh and Japanese are not stupid. Why invest billions and work so hard when you have to give 30% of your company free of charge to some bodoh?

    Well-loved. Like or Dislike: Thumb up 77 Thumb down 11
    • MAI Big Big BIg Liars on Dec 08, 2015 at 3:58 pm

      Car companies don’t trust Malaysia lah. See that clown Madani. He promised all the car companies that Malaysian Government was moving towards EEV and Hybrid.

      Honda and Toyota invested billions to set up CKD plants for their jazz, Civic and Prius. The public also went all out to buy Hybrid cars.

      Then suddenly the Government said no more incentive. Podah. Honda and Toyota lost billions.

      Hybrid buyers also lost so much. Parts went up to skyrocket prices. Car RV also went down so much cause everybody scared to touch Hybrids now.

      I hope MAI and the Joker Madani can be serious in life. It is only then, we Malaysians will start trusting the Government and in return, foreigners also will start again to trust Malaysia

      Like or Dislike: Thumb up 51 Thumb down 2
    • Malam Jumaat on Dec 08, 2015 at 4:01 pm

      This what happens when most of your workers are lazy, like to eat nasi lemak and sleep, the whole day thinking about kahwin empat and main kakak ipar (staying in your house doing A levels from up north) and the whole week thinking about Malam Jumaat. Instead of working hard, just waiting for government help all the time.

      Nobody also want to invest like that.

      Like or Dislike: Thumb up 29 Thumb down 31
      • Add-A-Comment on Dec 09, 2015 at 10:07 am

        Why are u targeting a specific race? Other races also have lazy people. Be it Malay, Chinese, Indian, Kadazan, etc. It is about the mentality of the individual and how their parents raised them.

        I know too many hardworking and brilliant people from all races and working well with them. See things from the bright side, you life will be much much better and more fun. Of cause, you can choose to stay in your cave forever if you wish. Malaysia doesn’t need you.

        By the way, I am not the race that you are referring to.

        – I Have Just Added A Comment –

        Like or Dislike: Thumb up 16 Thumb down 2
  • john is otak batu on Dec 08, 2015 at 3:49 pm

    Cakap sendiri. .syok sendiri

    Like or Dislike: Thumb up 17 Thumb down 2
  • Leafable on Dec 08, 2015 at 3:49 pm

    Your EEV still support dirty polluted car. Wheres your Electric/Hybrid car incentive? You suppose to support Electric / Hybrid instead of normal small car without hybrid system.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Two thinks to look out for.

    1. You will see how fast Thailand Government will accomdate to changes and challenges its regional countries with good foreign investment incentives and policies,

    2. Watch our government flip and flop with its policies with the next 5 years and kills itself once more.

    Like or Dislike: Thumb up 16 Thumb down 1
  • Proton 15% TIV in 2015 on Dec 08, 2015 at 5:01 pm

    Jangan syiok sendirilah. With this kind of stupid flip flop policy making MAI, nobody wants to invest in Malaysia. Look at Pruis, before 2013, everybody buy them in truckloads. Now, Toyota can’t even ship one on the road.

    Don’t trust this stupid report, Malaysia authority are a bunch of flip-flopping, songlaping thugs just to protect their conies and binis.

    Thailand is the real Detroit of Asia, Malaysia is a joke.

    Like or Dislike: Thumb up 22 Thumb down 2
  • Mr Fakta on Dec 08, 2015 at 5:16 pm

    If Malaysia is better than Thailand, then prove it by output, quality and numbers of investors. How could you trust a company who gives proton saga model of the year award.

    Everything goes down to fact.

    Like or Dislike: Thumb up 23 Thumb down 3
    • Proton 15% TIV in 2015 on Dec 08, 2015 at 6:12 pm

      Ya, thanks for refreshing my memory. Back in 2008, it was Frost & Sullivan (F&S) that gave the best C segment sedan award to the Proton Persona. Seriously? Persona over Civic, Altis, Mazda 3, Forte and etc? What pot they are smoking?

      This Frost & Sullivan (F&S) is most certainly a fishy company paid my the MAI or Proton to do kaki bodek job. So, take this report as a pinch of salt.

      Like or Dislike: Thumb up 26 Thumb down 1
      • Mr Fakta on Dec 09, 2015 at 5:33 pm

        Not just pinch of salt, a truck load of salt. Wonder how much they pay F&S.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Martha on Dec 08, 2015 at 7:10 pm

    Even the deal is better… who the hell want to deal with flip flop Government? Today they introduce the incentive… you then sit and pray whether will extend or cancel it at the year end!

    Like or Dislike: Thumb up 4 Thumb down 0
  • andrekua on Dec 08, 2015 at 7:12 pm

    Talk is cheap. EEV la, ayam la, itik la…

    I’m just a normal working class citizen and I just want an affordable car. Despite eligible for EEV rebate, I don’t see Jazz nor City selling cheap. In fact I find myself buying a Kia because it was better equipped and selling for less, despite not eligible for EEV. In the end of the day, if the savings don’t get passed on to customers but to crony companies, what’s the point of having these programs?

    Like or Dislike: Thumb up 16 Thumb down 0
  • Ibnu bakrin on Dec 08, 2015 at 8:07 pm

    Thailand manufacturer export some good model to Australia.
    Malaysia, what car export to other countries?

    Like or Dislike: Thumb up 5 Thumb down 3
    • Sammy Loo on Dec 09, 2015 at 7:48 pm

      Mazda CX-5 to Thailand
      Proton to Australia, UK and Chile
      Perodua Myvi (Daihatsu Sirion) to Indonesia

      Like or Dislike: Thumb up 3 Thumb down 0
  • Malaysia EEV incentive package is to lie investor only.
    After 5 years, flip there and here, change the policy again to feed greedy gomen

    Like or Dislike: Thumb up 4 Thumb down 2
  • FIST (Member) on Dec 08, 2015 at 9:11 pm

    Shut up lah F&S

    Like or Dislike: Thumb up 5 Thumb down 0
  • IF anything gud said about Malaysia, its a lie. Only those who bash are trustable. So dun care just blindly bash

    Like or Dislike: Thumb up 4 Thumb down 6
  • isuzuki on Dec 09, 2015 at 10:50 am

    …but…..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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