The debate over the third national car project may rage on, but an industry heavyweight has weighed in on the situation, calling for Malaysia to act early and squabble less to take advantage of the electric vehicle boom, according to a report by Bernama.
Former Proton chairman and managing director Tan Sri Mohd Nadzmi Mohd Salleh said that the country is not too far behind in developing EV technology, as there is no real leader in the field. “Other companies have their EVs and hybrid cars but nobody, except from Tesla, can say that they have a clear advantage over the others,” he said. “So, the competitive advantage of all companies for electric vehicles is almost the same.”
One of the major problems larger carmakers faced in producing EVs on a large scale, Nadzmi noted, was resistance not only from vendors and parts suppliers, but also internally due to heavy investments already made towards petrol and diesel engines. “We are a car producing country but we are not heavily invested in the old conventional technology,” he said. “I think if we introduce new technology for the industry, people will support it and there won’t be much resistance.”
Nadzmi, who is now chairman of Nadicorp, admitted that there is bound to be some resistance from suppliers and after sales service providers, as there would be fewer components and maintenance needed for EVs. However, he added that these businesses could adapt to such changes gradually as EVs would not replace conventionally-powered cars overnight. “For the next 10 to 15 years, there will be more electric vehicles on the road and this will be the megatrend in the industry which is already happening,” he said.
Although Malaysia does not have the capability to produce EVs at the moment, Nadzmi said that it would not be impossible for the country to develop this industry, pointing to the plantation sector as an example of Malaysia’s adaptability.
“Just look at our plantation industry planting rubber and palm oil trees which are not native to Malaysia where we managed to become among the largest exporter of these commodities,” he said. “To me, if you want to go into a particular industry, you must have the passion for it and you must be prepared for it,” he said.
Nadzmi urged entrepreneurs, private companies and public-listed companies to take the lead in developing the EV industry and not the government, which he said should instead perform a supporting role. “You need entrepreneurs to come and do it while the government can take some equity or give grants to develop this industry before it can stand on its own,” he said.
Hiring the right talent and implementing a sound business model is also important for the success of the venture, said Nadzmi, and that includes bringing in foreign expertise at the initial stage before developing local human capital.
“If Malaysia wants to grow fast in this industry, or any other industry, we must not wait for our people to have the knowledge to develop the new technology,” he said. “In many countries where they don’t have the technology and expertise, they will buy it or hire international people to work for them. Over time, they will have more of their own people to work on the project.”
Nazdmi also opined that those interested in building EVs could start with commercial vehicles such as buses and lorries, which do not need large volumes to be sustainable. “The technology is readily available and [it’s] only a matter of system integration,” he said. “Let us look at EVs in a different light, like catering for the first- and last-mile solutions in public transport where there is not much competition, and over a period of time, we can also produce passenger cars.”
He added that commercial EVs are less complicated to develop compared to passenger cars, due to the larger space available within the vehicle to place batteries, as well as less complicated chassis and technologies. Commercial vehicle buyers are also typically profit-minded businesses and logistics operators and not customers at large, which Nadzmi said would make EVs an easier sell. “If it is cheaper for them to own, maintain and operate commercial EVs, I think they will opt for these vehicles,” he said.
Nadzmi said that the third national car project should emulate Perodua’s success story by partnering with a large foreign company to reduce development costs. “Perodua’s business model is the best. Because Malaysia is a small market, there is a sharing of development cost between the Toyota group of companies, mainly Toyota and Daihatsu, and only a marginal cost incurred on Perodua,” he said. “This is the only way to do it. Without [the right business model], I don’t think any car company in a small market can be viable.”
The former Proton executive recalled his experience during his time at the national carmaker when Perodua was given better market protection compared to Proton to help it become sustainable. This same support, he said, could be afforded to the new national carmaker as well. “Proton from the very beginning paid import tax and excise duty while Perodua didn’t. They had that advantage over several years,” he added.
The new national car topic was first raised by prime minister Tun Dr Mahathir Mohamad at the Nikkei Conference in Tokyo in June, after the premier felt that his beloved Proton was no longer a national carmaker. Despite the idea not being very well received by Malaysians, including politicians, Mahathir has pressed on, reasoning that the project would help engineering companies who have suffered following Geely’s acquisition of Proton and boost Malaysia’s engineering capabilities.
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Will the ruler house revamping the archaic road tax system based on cubic capacity of combustion engine? Please revise road tax shall be based on total generating power in (KW) and incentive given to lowest carbon emission capability.
Taxing power is Dumb, emission is ok…
so taxing on what else is intelligent besides emission?
This guy was over paid before and he failed Proton. Please don’t comment.
Proton until today have no hybrid, EV or PHEV. And hybrid technology is 10 years old
Proton took billions from the Government saying they want to do EV research. Where is the EV car? That was 8 yrs ago.
ask our PM now, EV project under his when he was chairmain.
Do u believe a person that failed a company even with gov incentives for decade long? Now still believe?
He made 30 electric cars partner with Frazer Nash. Received grants few hundred million. Apa results pun tada. UK mat salleh laughing all the way to the bank.
Nobody wants hybrid car, EV summore. For example, jepunis Prius no RV, who wants cheap FC but later have to buy expensive battery?
tumb down for advocating misery life and illness suffering that could have be avoided by right?
So which Jepunis lord will willing to share their electric drivetrain with Protiga and allow them to sell it at the low price of Rm50k?
we guess it will be sanyo or maybe panasonic?
But they not car maker. How about the rest of the car platform?
The idea of venturing into EV is a good one if Malaysia possesses the technical know how to reduce R&D and trial & error cost. EV vehicle will be the future for automotive industry, but at the moment the issue faced is the battery. The common EV battery currently is lithium and amounts to the main cost of the vehicle. Tesla invented heavily with Panasonic to setup Gigafactory 1 for this purpose and is burning cash at an alarming rate. For Malaysia to built from scratch and compete with the key players in EV is not too optimistic. TDM will need to live pass 100 to see Perotiga become profitable .
Local technologists shud not procrastinate to develop graphene based battery for electric vehicles. Wake up and be the best.
Stop talking nonsense la. From 2008 you say in 2010 proton will have their 1st electric car. Till now 2018 , still producing rubbish saga and persona. Stop dreaming, local car maker will not survive , our market volume is too small and stop dreaming to export.
The car need to export to advanced country proof that can compete in their market then only Malaysian believe the car quality and reliability is on par with Japanese car brand.
To be honest, this is true. Malaysia has a chance to be leading the electrified world, however if it can take the opportunity is another thing.
“You need entrepreneurs to come and do it while the government can take some equity or give grants to develop this industry before it can stand on its own”
This is really starting to look like Proton.
Why can’t the government understand this – all we want is for the car import duties and excise to be abolished so that we have wider choice of vehicles at lower costs, which translates into better standard and quality of living? Why can’t the government just brain this simple idea?
local consumers only always demand on imported vehicles is good for the nation economy with growing trade deficits? how better stardard and quality of living by only depending on importation of goods and services?
Ask the Sinkies
one sg dollar equals to one my ringgit?
Do send send an invitation to Elon Musk.
But Elon not Jepunis
All about EV but the problem with implementation here in Malaysia is that:
1. We are subsidizing our petrol and even though previously based on float our petrol is still one of the cheapest.
2. There are no emission standard as far as I know even if we are using Euro1 petrol/engine it is still OK for passenger car.
How will there be any incentives/benefits for using EV then?
Entry timing to the industry does not help in Malaysian context. Proton exist before many other brands, now bought over by a company established much later.
Volvo? They exist long before the company who buy them for 100% share. So? Age of company does not matter..money n support is much more important.
Lotus got bought by a younger foreign company.
Landrover got bought by a younger foreign company.
Rolls Royce got bought by a younger foreign company.
Rover got bought by a younger foreign company.
So?
Those companies bought over by respected companies in the industry. Proton bought over by a China made company.
Ask anyone who wants to be seen in China car, let alone Proton made China car.
VolvoCar dun seem to mind it and now they making record breaking profits. So why does nationality matters? Rover got bought by China company and nobody there made a fuss.
Lotus…? They established way before Malaysia got it independence & still got taken over by proton…
quality ok ar? later battery within 2 years rosak and the EV is deem unusable.
LOL buy extra powerbank as backup
Electric car?..
If so..shut up and take my money!!
They will.
Because after TDM makes it more difficult and expensive for better imported cars to come in, you have no choice.
https://www.businessinsider.my/malaysia-mahathir-mohamad-mulls-curbs-on-foreign-car-imports/
New tech like electric vehicles will need the best brains and does Malaysia have any experience harnessing such personnel? The record is dismal to say the least, acquiring the best minds and retaining them will require a quantum leap in management skills without paying obscene salaries.
If New Gov is serious about EV, they shud incentivise P1-Geely to locally produce EVs here and subsidy for pipu to buy and use EVs. P1-Geely will able to have full range of EVs for all segments; Iriz EV for Bsegment, BMA (Bin Rui) for Csegment, Bo Rui for Dsegment, SX11 for small SUV, VF11 for mid-MPV. Work with P1-Geely instead of resisting them.
Someone lobbying for a job lol
The problem here is Malaysian buying mindset, started since TM impose super high taxes on imported cars.
The desire to buy foreign branded cars supersedes all rationality of developing our own talent in the industry.
I fully understand why we hate Proton and 3rd national car.
But but hut Civic tebo laggggg big time. Hahaha
3rd car project will add to additional waste of tax money, electric or not. Not to mention the cancerous protectionism that will come with it. Consumers will suffer the most. Btw, if we want to focus on curbing emissions more, why not focus on public transport as we can’t even beat Thailand on that field let alone Singapore? This will also lessen the road congestion issue
If it’s so easy, every car manufacturer would have done it. You had your chance to lead Proton to success but failed miserably. Don’t try to suck the rakyat dry again for the benefit of the few tuans. I will not fall for your attempt to fool us again.
Why we should agree with you after year’s of proton failure under your supervision.