NAP 2020

  • NAP 2020 – review of some elements necessary due to economic disruption caused by Covid-19, says MARii

    NAP 2020 – review of some elements necessary due to economic disruption caused by Covid-19, says MARii

    Last month, it was reported that the government was in the midst of reviewing the action plan for the National Automotive Policy 2020 (NAP 2020) as a result of the Covid-19 pandemic, which had changed the current economic landscape.

    According to Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari, while the policy and its general outlines remain in place, a review of some elements and aspects have been necessary as a result of the disruption, which has affected the automotive industry in terms of investment, production and sales.

    “We are reviewing the impact the pandemic has had on the industry. The policy was finalised before Covid-19, so when you look at it now, there are some elements that can be improved in order to help industry players recover faster. The government is looking at ways to incentivise automotive players given the current scenario, which is affecting not only the auto industry,” he said.

    NAP 2020 – review of some elements necessary due to economic disruption caused by Covid-19, says MARii

    He said that review also covered incentives defined in NAP 2020, for which “improvements have been done and are now undergoing the approval process.” With regards to customised incentives, Madani said that discussions have been carried out with industry players, and some adjustments will come about. “An announcement will be made very soon pertaining to that matter,” he hinted.

    In July, minister of international trade and industry Datuk Seri Azmin Ali said that the restructuring exercise will also see the government intensifying its efforts to attract more investments in high-technology segments and environmentally-friendly vehicles as well as in the development of a local skilled-workforce.

     
     
  • Every car company should pay duties at the same level, and we don’t need a third national car – MAA

    Every car company should pay duties at the same level, and we don’t need a third national car – MAA

    “We definitely agree that it should be a level playing field, and that every car company should be paying duties at the same level,” said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad on a query that national car companies Proton and Perodua enjoy an unfair advantage in the industry.

    Speaking after the association’s 1H2020 market review briefing earlier today, she added that “we have highlighted this to the government many times to say that duties on automobiles in Malaysia are very high, and it should be re-looked into. But, it always falls on deaf ears, that’s all I can say.”

    This, of course, rides on the common assumption that Malaysia’s two national car companies are subjected to a different set of taxes and duties compared to other foreign brands. That’s not exactly accurate, at least not anymore, as the industry has moved on to an updated system with “customised incentives” rather than outright lower taxes for Proton and Perodua.

    Every car company should pay duties at the same level, and we don’t need a third national car – MAA

    Under the current system underlined in the National Automotive Policy (NAP) 2014, all car companies are subjected to the same set of duties and taxes (Proton and Perodua included). However, a “localisation” approach known as Industrial Linkage Programme (ILP) does offer additional customised incentives and rebates that would give certain companies an edge over others.

    Designed to spur investments in the sector, the ILP scheme is open to all car companies operating in Malaysia. However, as it involves requirements such as local investment commitments, local content percentage and a few other details not publicly known, it will, quite naturally, benefit the two local players – they would obviously have the highest levels of localisation among all. Foreign brands that have invested heavily also enjoy substantial incentives, or are at least open to.

    The ILP may seem to some as a form of a protection mechanism, but as it’s open to all car companies, technically we have already achieved a level playing field for all in Malaysia. This, of course, is up for interpretation and debate among industry players and others looking in, especially on the “customisable” nature of the incentives.

    Every car company should pay duties at the same level, and we don’t need a third national car – MAA

    The MAA president also chimed in on this issue. “There were a lot of things that were said at the NAP 2020 announcement that we did not have any clarification for. What we wanted is instead of the incentives being customised, we would prefer it if the incentives are made known to the industry, so that it’s better for us to know what exactly the government requires,” Aishah explained.

    With questions moving on to the new national car project (NNCP) and how it would affect the sector, Aishah commented that “the industry’s stance is that having two national cars in Malaysia is already too many. To have a third national car project, I don’t think we need it. But we don’t know the details of the plans for the third national car, so we cannot comment on that.”

    “Having national cars is a political decision, so it’s very difficult for me to comment on. We have always lobbied that it should be a level playing field,” she concluded. The government has said that the NNCP is set to continue, and has asked to be briefed on its development and progress.

    So, what do you think of all this, folks?

     
     
  • NAP 2020 set to be restructured as a result of Covid-19

    NAP 2020 set to be restructured as a result of Covid-19

    The government says it in the midst of restructuring the action plan for the National Automotive Policy 2020 (NAP 2020), which was unveiled in February, to ensure the country’s automotive sector remains competitive following the Covid-19 pandemic, the New Straits Times reports.

    According to minister of international trade and industry Datuk Seri Azmin Ali, the global outbreak had triggered “unintended economic consequences” on many sectors in the country, including the automotive sector, which had been affected in terms of investment, production and sales.

    Speaking at the Dewan Rakyat yesterday, he said that the restructuring exercise will see the government intensifying its efforts to attract more investments in high-technology segments and environmentally-friendly vehicles as well as in the development of a local skilled-workforce.

    NAP 2020 set to be restructured as a result of Covid-19

    He said this in response to a question by Ong Kian Ming (PH-Bangi) on the estimation of the total industry volume (TIV) for the automotive sector this year following the outbreak. Ong also asked if the government planned to introduce more targeted assistance and incentives to stimulate the automotive industry.

    “The sales of vehicles revived and experienced an increase following the government’s decision to reopen almost all economic sectors beginning May 4. The TIV reached 22,960 units for May. The figures, however, is way lower from the TIV recorded during the same month last year, which was 60,790,” he said.

    Azmin added that the sales of motorcycles were also badly affected during the peak of the pandemic, with no sales transactions being made in April. “The sales of motorcycles, however, recovered in the following months, with 19,507 units and 42,190 units sold in May and June respectively,” he said.

    NAP 2020 set to be restructured as a result of Covid-19

    He said that the 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models until December 31, announced as part of the Penjana economic recovery plan, would help to revive the sales of passenger vehicles in the domestic market.

    Separately, to a supplementary question from Datuk Seri Ahmad Maslan (BN-Pontian) about the continued development of the new national car project (NNCP), Azmin said the present administration had a framework to ensure all criteria of the vehicle must be adhered to.

    “At the moment, we want to ensure that the Bumiputera company that was given the responsibility to develop the car will cooperate with MARii (Malaysia Automotive Robotics and IoT Institute) to continue with such efforts. Having that said, this initiative is a private initiative and receives no allocation from the government,” he replied.

     
     
  • NAP 2020 is the future but government shouldn’t ignore current uncertainties facing the industry – MAA

    NAP 2020 is the future but government shouldn’t ignore current uncertainties facing the industry – MAA

    The National Automotive Policy 2020 (NAP 2020) was officially launched last Friday 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.

    What do the car companies think of it? We’ve heard from a couple of individual carmakers, but here’s what the Malaysian Automotive Association (MAA), the umbrella body for all car companies in Malaysia, has to say. Asked by The Star, MAA president Datuk Aishah Ahmad agrees on the direction NAP 2020 is pointing to, but urges the government to not just look into the future, but look at present issues as well.

    NAP 2020 is the future but government shouldn’t ignore current uncertainties facing the industry – MAA

    “Overall, I think the NAP 2020 is the future and is in line with the global trends. ASEAN countries are also focusing on the future trends. They’re looking at the next generation of vehicles,” she said.

    “Where I’m pleased is the fact that the ministry will be taking a step-by-step approach as they start introducing next generation vehicles and new technology. Because if we’re not ready, implementing anything too soon will not be good for the industry,” Aishah added.

    However, the MAA head also urged the government to focus on current issues faced by the automotive industry. And there’s no bigger issue than the uncertainty brought about by the recently introduced new methodology of how the open market value (OMV) of a vehicle is calculated. OMV is the final market value of a CKD car ex-factory, before the government imposes excise duties on it, with profit margin and sales tax to top things off.

    NAP 2020 is the future but government shouldn’t ignore current uncertainties facing the industry – MAA

    An assortment of components determine the OMV, and these include the cost of the CKD pack, cost of manufacturing and components as well as assembly and administration charges. However, the Excise (Determination of Value of Locally Manufactured Goods for the Purpose of Levying Excise Duty) Regulations 2019 – prepared by the MoF and gazetted on December 31, 2019 – sought to add new components into the OMV calculation.

    Under the new regulations, the computed value to determine duties will now take into account not just the profit and general expenses incurred or accounted in the manufacture of a vehicle (ex-factory), but also of its sale.

    The “and sale” clause also now applies to areas such as advertising and marketing, warranty and trade royalty, plus wages and commission. Also included are general and administrative expenses such as rental, utilities and office supplies, among other costs. Naturally, this raises the OMV and applicable excise duty.

    NAP 2020 is the future but government shouldn’t ignore current uncertainties facing the industry – MAA

    On January 22, the finance ministry gave a special exemption that essentially maintains the car price status quo for 2020. It remains to be seen what will happen next year, but the government says that any increase will be gradual.

    “The present concerns that we have are the policies to excise duty hikes. It’s been held back for this year but what about beyond that? That creates uncertainty for the industry,” Aishah stressed, adding that the new tax structure would have hiked up CKD car prices by up to RM33,000. “What we’d like to reiterate to the government is to not ignore the present situation,” she urged.

    On the day that Aishah announced the MoF’s exemption for this year, she said that had the reprieve not happened, it would have been bad news for the auto industry, which already faces a challenging environment. Aishah said that the association’s members, some of whom have invested heavily in assembly operations in Malaysia, would have had to rethink their plans for our market.

    “Had the new OMV been implemented, a lot of investors would have second thoughts on investing in Malaysia. Even our local car companies that have been heavily investing in CKD operations would have to think again. Maybe they will decide to bring in CBU (fully imported cars) – why do you invest so much and yet it’s not competitive. That’s how I look at it,” she said then.

    Aishah and MAA council members also said that the industry was not consulted prior to the release of the new OMV gazette, despite being in active talks with the government on other matters. Datuk Zainal Abidin Ahmad, president and CEO of Perodua, had also said that the Malaysian market leader was not consulted on the matter.

    At the launch of NAP 2020, minister of international trade and industry Darell Leiking urged naysayers to “work together” with the government for the betterment of the industry, which contributes 4% to the country’s gross domestic product (GDP). Perhaps more engagement between the auto industry, MITI and crucially, the finance ministry, would be good for all. More on the NAP 2020 here.

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

    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

    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

    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

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

    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.

    Exports

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

    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.

    Employment

    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.

    Vendors

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

    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.

    Investments

    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

    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.

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

    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

    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.

     
     
  • 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.

     
     
  • UMW Toyota welcomes NAP 2020, to CKD hybrid cars

    UMW Toyota welcomes NAP 2020, to CKD hybrid cars

    Following the launch of the 2020 National Automotive Policy, several car brands have released official statements, with UMW Toyota Motor being the latest. Company president Ravindran K said he is pleased that the government has provided an ‘updated roadmap’, one which provides “great value” to its future plans.

    One of the key focuses of the new NAP is on Next Generation Vehicles (NxGV), which UMWT will support when specifications and expectations are clear. The company also hopes that the government will continue giving incentives for a sufficient length of time, so as to justify investment and provide reasonable returns on investment.


    The Corolla Hybrid was spotted in Iskandar Puteri, Johor, last October

    “We believe that our Bukit Raja Plant is equipped with automation, skilled manpower and the capacity to move align with the government’s vision of developing our industry into Industry Revolution 4.0 (IR 4.0),” Ravindran said, adding that UMWT is planning to introduce more CKD hybrid cars in the future. “We urge the government to support in increasing the incentives provided to spur the hybrid market in Malaysia,” the statement added.

    UMWT deputy chairman Akio Takeyama said: “We are always grateful to the ministries and agencies for their guidance, support and cooperation and give assurance that we will do our part to help develop not just the Malaysian automotive industry but also strive to contribute back to society. As we welcome this new era, we hope to work together with the government for Malaysian society to have a better life.”

     
     
  • Perodua hails the NAP 2020 as consistent govt policy

    Perodua hails the NAP 2020 as consistent govt policy

    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.

    Market leader Perodua has hailed the NAP 2020 as consistent government policy. “NAP 2020 sees consistency in the government’s policies to advance the Malaysian automotive eco-system to the next level. This is apparent in the continued support for component localisation, which is the backbone of the country’s automotive industry,” said Datuk Zainal Abidin Ahmad, president and CEO of Perodua.

    Perodua hails the NAP 2020 as consistent govt policy

    He points out that over the past decade, Perodua has purchased a total of RM43.5 billion worth of components from local suppliers, including RM5.4 billion in last year alone. This year, P2 expects to spend nearly RM6 billion on locally-sourced components. “This volume sustains and fortifies the Malaysian automotive eco-system, contributing to the economy, jobs and nation-building,” Zainal Abidin said.

    The P2 chief also said that the government’s commitment to further the Energy-Efficient Vehicle (EEV) programme, in which many players have invested in, is consistent. He pointed out that Perodua is Malaysia’s first and largest EEV manufacturer with over 800,000 EEVs sold to date.

    “On autonomous technology, Perodua, guided by our technical and technology partner Daihatsu Motor Company of Japan, has laid the foundation with its Advanced Safety Assist (ASA) suite of driver assistance systems and crucially, we have made it accessible to the masses. This technology will be further improved in line with our aim to provide Malaysians with mobility that offers even greater safety and value,” Zainal Abidin added. More on the NAP 2020 here.

     
     
  • NAP 2020 targets 1.22 million TIV, RM12.3 billion in exports by 2030 – 323,000 new jobs to be created

    NAP 2020 targets 1.22 million TIV, RM12.3 billion in exports by 2030 – 323,000 new jobs to be created

    As part of the launch of the new National Automotive Policy (NAP) today, the Ministry of International Trade and Industry (MITI) has released its targets over the next 10 years.

    Among other things, the ministry hopes to grow the total industry volume to 1.22 million units and the total production volume to 1.47 million units by 2030. These numbers should include passenger and commercial vehicles as well as motorcycles, if the previous NAP’s targets were anything to go by.

    This represents a mild increase over the 2014 projections of one million units and 1.35 million units respectively. Last year, the automotive industry sold 604,297 vehicles and produced 571,632, although these figures do not include motorcycles.

    The ministry is banking on an increase in exports of completely built up (CBU) vehicles, which are expected to bring in RM12.3 billion in ten years. All in all, MITI targets a contribution of RM104.2 billion from the automotive industry to Malaysia’s gross domestic product (GDP) by 2030.

    Exports of locally-made components are also expected to rake in RM28.3 billion fo new automotive parts and RM10 billion for remanufactured parts. In terms of employment, MITI says the NAP 2020 should create 323,000 new jobs, including 128,000 in manufacturing, 46,000 in the aftermarket, 30,000 in the robotics sector, 44,000 in the Internet of things (IoT) sector and 75,000 in the mobility-as-a-service (MaaS) sector.

    Also listed are the creation of new research and development facilities, including a full-fledged Vehicle Type Approval (VTA) testing centre, an Electric Vehicle Interoperability Centre (EVIC), an autonomous/automatic vehicle test bed, a virtual design centre, an additive manufacturing (i.e. 3D printing) design centre, a robotics and artificial intelligence centre, a big data analytics (BDA) centre, a digital twin centre and a technology academy in the field of automobiles and overall mobility.

    The broader strokes of NAP 2020 were revealed today, with seven roadmaps having been detailed 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.

     
     
  • NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    The National Automotive Policy 2020 (NAP 2020) has been officially launched. The policy, unveiled earlier this morning by prime minister Tun Dr Mahathir Mohamad, aims to develop 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.

    Also present at the launch, which took place at the ministry of international trade and industry’s (MITI) office in Kuala Lumpur, were several cabinet ministers, including international trade and industry minister Datuk Darell Leiking.

    The updated policy projects to implement growth on a number of fronts between 2020 and 2030, including the research of new technologies and the creation of business and job opportunities as well as the development of new manufacturing processes and value chains within the local automotive and overall mobility sector. Support for national car projects and the growth of exports, investments and local production volume will also be pursued.

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    On top of stimulating the development of vehicles, components and new systems, Leiking said that NAP 2020 would have a holistic approach. “It will cover the comprehensive development of industry capacities, including the supply chain, human capital, indigenous technology, infrastructure, standards/regulations and other elements,” he said in his speech.

    “Rest assured that while the focus of the policy is on new technology, the government is aware of the immediate and current needs of the industry, and will endure that none is left behind,” he added.

    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.

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    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 technology as well as hybrid, electric and fuel cell vehicles.

    Elsewhere, the customised incentives mechanism is set to continued, and will be based on cost benefit analysis of specific business proposals by investors. These customised incentives will be more comprehensive, and will encompass a broader scope to involve not just EEVs but NxGVs, critical components as well as testing centres.

    Another direction that will be pursued is market expansion, in which measures will be introduced to increase export development not only for vehicles and components, but also for the aftermarket and services sector. This will look to significantly expand from that achieved in NAP 2014, which saw exports of parts and components grow from RM4.7 billion in 2014 to RM12.1 billion in 2018.

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    Strategy-wise, emphasis will be placed on enhancing the competitiveness of the domestic value chain by pursuing high-quality technology products that will meet future standards of vehicle manufacturers and consumer needs. Secondly, local talent will be further developed, in tandem with current and future demands for new directions in automotive and mobility technology.

    The third strategy will involve safety, environment and consumer-related matters. More environmentally friendly elements of technologies are set to be adopted to address the issue of emissions, while the emphasis on safety of vehicles will grow. Additionally, new elements to protect consumer rights related to spare parts and services, such as maintenance and recall processes, will be incorporated.

    Seven new roadmaps and blueprints were also revealed at the launch. These are supplementary to the main policy, and will serve as guidelines for future expansion in each category.

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    The seven roadmaps are:

    • 1. National Roadmap for Automotive & Mobility Value Chain (NRAMVC)
    • 2. National Roadmap for Automotive & Mobility Technology (NRAMT)
    • 3. National Roadmap for Automotive & Mobility Talent (NRAMTa)
    • 4. National Roadmap for Automotive Aftermarket (NRAA)
    • 5. National Blueprint for Automotive Mobility as a Service (NBAMaaS)
    • 6. National Blueprint for Automotive Robotics (NBAR)
    • 7. National Blueprint for Automotive Internet of Things (NBAIoT)

    According to MITI, these roadmaps and blueprints will be continuously reviewed and updated to remain abreast of disruptive global trends, technologies and demands.

    NAP 2020 launched – an enhancement of NAP 2014, aims to make Malaysia regional automotive leader

    Plans aplenty, but not so much on specific details on the scopes offered. Nonetheless, Leiking said the policy should be viewed for what it will eventually achieve. “I’d like you to take this policy with a long term perspective. While we address the current issues within our industry today, the NAP 2020 is truly about the long term, bigger picture that guides our thinking, capabilities and spirit towards driving the industrialisation of this country,” he said.

    Besides aligning to current technological advancements, NAP 2020 will also set out to improve policy measures and implementation. The ministry added that the launch of the NAP 2020 will be followed through with numerous outreach campaigns, information repositories, conferences and stakeholder engagements.

     
     
  • DreamEdge teases new national car prototype – full Malaysian effort, sedan promises to be “fun to drive”

    DreamEdge teases new national car prototype – full Malaysian effort, sedan promises to be “fun to drive”

    DreamEdge, a Cyberjaya-based digital engineering services and consultancy company behind the New National Car Project (NNCP), has set up a teaser box with what appears to be a prototype of the “third national car.” This was showcased at the new Ministry of International Trade and Industry tower, an event which coincides with the NAP 2020 announcement.

    The boxed car itself is draped in black cloth, revealing just one side of each headlight and tail lamp, and what clearly appears to be matte black paint. Much of the design seems generic at this point, but do let us know what you think of it.

    The headlight itself features a long strip of LED daytime running light, a single projector lens, a separate high beam reflector panel, and what appears to be a bulb-type turn indicator. Judging by the outline of the chrome grille surrounds, we’d argue that the grille design will be rather sizeable.

    Other notable design cues include subtle bumper contours, an integrated lower lip, plus another LED strip to replace the conventional fog lamps. The lower intake surrounds appear to be finished in gloss black, but there’s really not much we can go about with what’s shown here.

    DreamEdge teases new national car prototype – full Malaysian effort, sedan promises to be “fun to drive”

    At the back, we can’t help but find the tail light design remarkably similar to the first-generation Audi A5, albeit featuring a distinct C-shaped LED graphics and several vertical strips. Lower down, there’s more black highlights, as well as an integrated reflector strip.’

    One thing to note is that the car will be produced as a plus-sized B-segment sedan. Besides that, DreamEdge promises that it will be an all-rounded performer with emphasis on being “fun to drive,” family friendly, highly fuel efficient, and value for money. It will also get a “modern and futuristic styling, complete with up-to-date in-car connectivity functions, and Advanced Driver Assistance Systems.

    As for the powertrain, previous reports suggest that the sedan will get either a regular internal combustion petrol engine or a hybrid powertrain. The design concept and development will be led by DreamEdge, with technology partner being Daihatsu – which confirmed its involvement in the project in October, with no equity involved – handling the development of the powertrain and providing the platform. It won’t be another Daihatsu rebadge, though.

    We were told recently that a prototype of the first model will be shown in March this year, and a working prototype is due by mid this year. The final product is said to make its market debut a year later in March 2021, whereas production is set to take place in the first half of 2022. After that, the company plans to sell at least 3,000 units of the car a month in the first year of sales, which is rather ambitious.

    Lastly, DreamEdge’s mission statement is to spur innovation and boost Malaysian participation in science, engineering and technology adoption. It will take on a tech-oriented approach in sales and after sales, and promises to transfer tech knowhow through the process of localisation, as well as enhance local R&D capabilities.

     
     
 
 
 

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Last Updated May 16, 2024