Earlier today, UMW Toyota Motor (UMWT) announced that it will in the future start local production of hybrid vehicles. The company says that it will invest RM270 million into expanding its current manufacturing operations and facilities. This amount includes, amongst others, the introduction of a “new and technologically-advanced generation of HEVs”.
“We are ready (with the introduction of HEVs), and the technology, service support, current infrastructure, global and domestic policies, the level of affordability and cost effectiveness, and consumer awareness and demand, particularly in Malaysia, are now at its most ideal conditions to pursue a new and exciting journey towards achieving carbon neutrality,” said UMWT deputy chairman Akio Takeyama.
For Malaysian car buyers, the local manufacturing of Toyota HEVs “would translate into advancing into a new era of motoring, one that gives them access to the latest and most innovative technologies, at a price point that is practical and accessible to the greater masses,” UMWT says.
UMWT did not elaborate or hint at the upcoming CKD hybrid models. The brand’s previous, and only, locally assembled hybrid effort so far was the previous generation Camry Hybrid, which was launched in 2015 along with the XV50 Camry facelift range. With tax incentives, the range-topping hybrid D-segment sedan had a launch price of RM174,900 six years ago.
What could be on the cards this time around? We have a sleek new generation Camry now, and the XV70 also has a hybrid variant. The latest Camry Hybrid facelift could be one of the potential models, even if Japanese brand D-segment sedans – once a permanent fixture on our roads – aren’t as popular now as they were when the previous car surfaced. This is due to a combination of rising prices, increasing affordability of entry premium brand models, and of course – the relentless assault by SUVs.
Speaking of SUVs, even the Corolla has an SUV variant now. Launched in March, the Corolla Cross started life here as a CBU import, but CKD production will start in the second half of the year, which we just entered. The Corolla Cross will be first TNGA-based car to be assembled in Malaysia.
We get the crossover in 1.8L NA form now, but the Corolla Cross is also available as a hybrid elsewhere. The Corolla Cross Hybrid pairs a 98 PS/142 Nm 1.8L NA engine with a 72 PS/163 Nm electric motor and Ni-MH battery for a total system output of 122 PS. In Thailand, this hybrid powerplant is an option for both C.Cross and C-HR SUVs.
Also using this tried and tested hybrid system is platform-mate Corolla. Like the Cross, the C-segment sedan is currently sold in Malaysia in CBU form, with a 1.8L NA engine. The Corolla Hybrid was actually spotted in Malaysia in late-2019 being tested by UMWT – click on the pics above for a closer look.
UMWT’s Takeyama says that the company is ready to roll out hybrids now, and that consumer awareness and demand is ideal in Malaysia for them to do so. Let’s talk about the latter part of that statement, the part that describes us Malaysian consumers.
The awareness is definitely there – it all happened in that small window from 2011-2013, where imported hybrids were given tax breaks. Honda and Toyota moved fast and were main beneficiaries of the Najib-era policy. CBU Japan models like the third-gen Toyota Prius, Toyota Prius c, Lexus CT 200h, Honda Insight and Honda CR-Z were relatively affordable, and popular among urban folk.
The next step was to encourage local production of hybrids, and Honda took the lead with the CKD Jazz Hybrid – in fact, the company’s Melaka plant is still rolling out hybrids to this day. Toyota’s attempt at CKD hybrids was limited to the XV50 Camry Hybrid.
As for the demand part, it’s not so straightforward, isn’t it? Let’s face it, Malaysians bought hybrids because they were “cheap” and not because of the eco-friendliness of the battery-assisted cars. Petrol prices are subsidised and that somewhat nullifies the fuel economy benefits of hybrids. In any case, regular ICE engines have also closed the FC gap with better efficiency and/or downsizing/turbocharging.
Hybrid cars are also perceived to be more complicated, in a negative way. Carmakers offer specific and long warranties for the hybrid battery and hardware to counter fear, but it seems that the sentiment persists. Personally, I’ve owned a hybrid for over seven years without any electronic problems, but there may be some who weren’t so lucky. Japanese carmakers might point fingers German premium makes for this bad rep, but the average consumer might not be so discerning.
Would you go for a hybrid if its price wasn’t aided by tax incentives?
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Nope, unless the price for battery replacement is cheaper and reasonable.
Toyota Corolla Cross under rm90k pls…
I’m not the biggest fan of the RAV4, but if Toyota doesn’t use this to introduce the ever so popular hybrid version of the RAV4 in Malaysia, it would be such a missed opportunity.
Mirai San want to buy latest gen Mirai . Pls launch it ASAP in Boleh Land. Arigato!
Won’t be in popular demand since there’s no hydrogen stations here last time I checked.
In the new era where SUVs and Crossovers are dominating world, it’s better for UMW to manufacture hybrid SUV and crossover from TNGA-B based small Yaris Cross, Compact Rav4 to big TNGA-K based Higlander. They could also assembles and export the The Rav4 to ASEAN countries like what Mazda did with CX5.
I know the new plant in Bukit Raja is capable to produce multiple TNGA platforms. But of course big investment and volumes should be considered in order to manufacture those vehicles.
For the sedan, I think only vios will stay to be built in Malaysia for competetive price. The Corolla and Camry market are shrinking due to crossover and SUV. I think umw will continue with current direction with importing both vehicles from outside. I just hope the Corolla and Camry will be imported from Japan instead of Thailand as we got inferior feature and engine from Thai plant. Our Corolla and Camry need new 2.0 and 2.5 dynamic force engine not the old one.
Greedy and worse Umw Malaysia charge over price car an provide low quality Spec Toyota car in Malaysia
Honda Malaysia also charges us CKD Accord with CBU price, doesn’t it ?
Bring Yaris Cross and Prius C also
I will not buy hybrid if its not aided by tax incentives. With current pandemic and mco’s I suppose many hardly got a chance to make long mileage. And it will remain so who know until when?
It is always good to CKD. From my 2 Toyota experience ckd and cbu I feel no different in terms of quality. Hope the overpriced cbu harrier and rav4 will be ckd here.
Paultan is right, relentless assault of SUVs in market. Demand high for SUVs on Malaysia Road. Hope I can read article the maintenance service of a hybrid vs non hybrid vs full EVs
No point selling hybrid cars if the spare part of the hybrid system so expensive and not parallel with Malaysian living standard. If no tax incentive for the hybrid car retail price as well as the battery and it’s component, better cancel the plan and stick to NA model.
Wow! Gud gud gud! I want the Corolla cross hybrid
Taiwanese complains the roof is leaking
Because Taiwan assembled Corolla Cross. But since we get imported from Thailand that Thailand assembled Corolla Cross, so there will be no issues on roof leaking because roof rack is more similar as Thailand. But when assembled here, type of car roof rack will be more similar as in Thailand.
The leaking is because of the holes on the roof with lousy water insulation, not the rack…car makers are standardizing parts globally to save costs, I don’t think Thailand racks are different from Taiwan
But if not mistaken, even I forgot what type of roof rack is that and according from one of the source from Malaysia, they use different type of roof rack, not the one in Taiwan.
Interesting
Next-gen hybrid Vios/Yaris is very likely.
With protracted lockdowns and restrictions especially in the Klang valley,nobody has the appetite for new cars.
Of course,there will be some loaded diehards who are waiting for restrictions on JPJ/showrooms to be lifted to register their dream cars.
With the virus seemingly spiraling out of control even with a full blown MCO,it is hard to fathom how business will pick up after repeated lockdowns.When businesses are hanging by a thread,what prospects have employees to sign new hire purchase agreements.
Gone are the days of impulsive whimsical car buying behaviours.
Environment is the key.
The government should promote hybrid cars, not only EV using tax incentives.
Or possibly never say at all
Take my money
I was shopping for a mpv with a fixed budget. as i wanted sliding door, and either new or used but not recond new or recond used, i have limited choices. Looked at VW sharan, Honda odyssey, mazda biante and nissan serena. Settled for the nissan serena which coincidentally is a hybrid. Did hybrid played a role in my decision? Not really, as Danny has rightly pointed out that the low fuel price in our country nullifies the fuel economy benefits of hybrids. Notwithstanding this, i am happy with the fuel economy of the serena, into my third year of ownership.
No one going to buy HEV when people can get the normal petrol version at much cheaper price. For HEV to gain traction, tax incentive is needed, even in first world countries E.g. USA, Germany, Canada.
However there is a catch here in Malaysia. Our government track records to “Flip flop” on policies. Our hybrid tax breaks lasted only 3 years after government they didn’t able to get a piece ($$) on the booming hybrid sales. Car manufacturer (Not Luxury Brand) sees their investment to support this new segment burned after sales disappeared immediately after tax break ended. There is simply no market. Post tax break, Prius-C Hybrid (B-Segment) cost almost the same as a Camry Petrol (D-Segment). Not to mention to the hybrid buyers that see their prized high-tech Hybrid car 2nd hand value sinked to bottom.