Mercedes-Benz Malaysia explains why we can’t have the EQC yet

Mercedes-Benz Malaysia is ready to introduce its EQ brand of electric vehicles (EVs) in Malaysia but for that to happen, the company needs a certain level of assurance in terms of long-term stability with regards to the government’s direction and better clarity in our National Automotive Policy (NAP).

Speaking at a virtual meeting with the Malaysian media yesterday, Dr. Claus Weidner, President & CEO of Mercedes-Benz Malaysia said, “As we have always said, we are looking into the feasibility of bringing whatever cars (in our portfolio) and this also include the EQ.”

Like any car company looking to invest in Malaysia, Dr. Claus explained that Mercedes-Benz Malaysia will have to consider two main factors before introducing a new product here.

“First of all is the economic feasibility, in terms of what kind of incentives, what kind of production environment, or regulations are there in these specific markets. On the other side is the demand side.

“So we always have these plan there but (we) also have to adjust them according to the regulation change or uncertainties or volatilities in the market here. So we definitely have the plan that we bring EV into Malaysia, whenever it is deemed ready, and we deem it ready from those perspectives.

“We are continuously working internally and also with the agencies here especially with MARii and ABDC (Automotive Business Development Council). In order to see what under the umbrella of the NAP is possible for us to do. As soon as this is possible we definitely will bring EVs into the market.”

On the topic of NAP, Dr. Claus explained that improvements in giving more details and better clarity with regards to the government’s long-term direction will definitely improve Malaysia’s competitiveness.

“Overall, the NAP which was launched last year, was not (complete) in the details for each and everything so basically we had to adjust here and there on our topics. Only what was possible to do, we did, and that aspect is also from the planning perspective.

“I am also supporting this argument for EV topics, that there needs to be more specific details in the NAP so we can have better certainty of planning in that respect – what is the direction for the government for EVs in Malaysia is. Other than that we are continuing to work with the government, the institutions, as usual to bring our products as the demand of the market is requiring.”

Dr. Claus also explained that it is not good change policies mid-way. The most recent example was the change in OMV calculation, done by the previous Pakatan Harapan government.

“We also have to put into perspective the regulations developments. You know the ones like the NAP, the other topic is also OMV, which is now clarified finally.

“Then you have a new EEV definition coming up. All these kind of things have an impact on pricing and the uncertainty of things are going on. A clear environment and regulation setup provided by the government is needed, not on a short-term basis, changing maybe on a half yearly or yearly basis, but a longer perspective to give certainty and trust to the market so planning certainty is given for the manufacturers, dealers, and also what customers can expect – are prices going up or down, what is the direction in that area, so they can make decisions.”

There’s also the question of infrastructure support - public charging stations for example.

Dr. Claus said Mercedes-Benz Malaysia is in contact with companies that are providing charging services, but ultimately the topic of rolling out supporting infrastructure is heavily dependent on the government’s direction.

“As an OEM we are providing the cars. The infrastructure topic is something that is necessary to be built up either by the government or also by other companies. If you compare it with petrol stations, on the other side, it’s definitely the same thing with that perspective.

“We definitely have to see what are the plans from the government side or other companies (charging service providers) who go into this, and all these have be seen under the umbrella of the NAP – what is the direction of the government, how they want to bring forward this kind of tech within the market in a bigger picture.

“As you can see in other countries, for instance in Singapore, it’s very much driven by the government so I see a big stake of this with the regulators and the respective companies in that area,” said Dr. Claus.

Mercedes-Benz have been one of the longest and biggest automotive investors in Malaysia.

In 1983, Malaysia was the first country outside of Germany to be given the rights to assemble its flagship S-Class (W126 generation).

While other companies like Hyundai have relocated their regional office to Indonesia, the Mercedes-Benz Malaysia (MBM) office in Puchong doubles as Daimler’s regional office – one of two in the region (the other is in Bangkok).

The South East Asia II team in Malaysia also looks after Singapore and Indonesia, as well as many smaller ‘General Distributors’ markets - countries with no direct presence by Daimler’s wholly-owned national sales offices.

Bangkok’s South East Asia I team looks after Thailand and Vietnam.

This arrangement is also why the Mercedes-Benz GLB made its regional debut in Malaysia.

In 2019, Malaysia was the first country in Asia to debut the all-electric Mercedes-Benz EQC. There were plans to introduce the EQC to Malaysia but clearly this is no longer happening as Daimler later announced that Thailand has been selected to produce the EQC.

However here’s a plot twist: The EQC project has been cancelled in Thailand after Daimler ran into some problems with the Thai government, but another EQ model will be produced there instead (to be announced). Perhaps all is not lost yet for Malaysia?

MBM also runs an Apprentice Training Centre. Located within Wisma Mercedes-Benz Malaysia in Puchong, it offers technical training to school leavers looking to pursue a technical career in automotive.

Established in 1984, one year after Malaysia became the first country outside of Germany to assemble an S-Class, the program is the first of its kind in Malaysia by a premium high-end marque, so students are trained in the latest technology used by Mercedes-Benz cars. To date, the centre has trained over 900 Malaysians.

MBM’s Pekan plant currently makes 5 models (totalling 13 variants) - C-Class, E-Class and S-Class sedans, GLC and GLC Coupe SUVs, as well as two Mercedes-AMG models, the C 43 and the GLC 43 Coupe. It also exports the C180 to the Philippines.