malaysian automotive industry analysis
UMW Toyota Motor welcomes the announcement of the incentives provided to the Malaysian auto industry
UMW Toyota Motor Sdn Bhd (UMWT) welcomes the announcement of the incentives provided to the Malaysian auto industry announced by the Prime Minister today. The incentives are part of the Government’s Short-Term Economic Recovery Plan to offset the impact of the COVID-19 pandemic. Between 15 June and 31 December 2020, the Government will allow exemption on 10% Sales Tax for the purchase of new vehicles. For locally-assembled (CKD) models, the exemption will be 100% while for imported (CBU) models,
Waiting for the announcement of the new National Automotive Policy (NAP) is a bit like waiting for the next installment of the Fast and Furious. You know it’s going to be bad but you still want to watch it. Although the automotive industry already knows what to expect – more of the same old, a lot of lofty goals but lacking in details. However professional managers are obligated to make decisions based on data and official sources of information, so car companies will still need to wait for an o
The 6-month long loan moratorium is set to expire in September and its expiry could have some negative impact on the Malaysian automotive industry. The loan moratorium went into effect in April as the country entered the Movement Control Order (MCO) period. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad told The Edge, “People will not have the money to buy new vehicles. But I think it depends on the category of vehicles. I think high-end vehicles will not be impacted; people
Market intelligence forms the basis of any company’s ability to make reliable forecasts and volume planning. Without it, the company is merely shooting in the dark. What is the projected sales mix between the S, E, and V variants of the Honda City? What’s the monthly sales volume? What’s the colour demand trend? All these questions need to be answered at least 6 months in advance because that’s how the manufacturing industry works. Most of the world’s manufacturing plants operate using the so-ca
From fuel standards to Approved Permits to tax structures, the last 18 months have been marked by a lot of uncertainties in the Malaysian automotive industry. Last October, the government announced that it is backtracking on its commitment to roll out lower sulphur Euro 4M standard RON 95 petrol by 14 months, from 1-October 2018 to 1-January 2020. The Ministry Domestic Trade and Consumer Affairs nonchalantly announced the postponement only on 5-October 2018, saying that the delay was due to the
Geely has become the first Asian automaker to join IATF, a global automotive quality standards organization. The International Automotive Task Force (IATF) is a group of automotive manufacturers which aims at providing improved quality products to automotive customers worldwide. With its admission, Geely will now participate in the formation and improvement of international quality standards with other global automotive groups to promote the sustainable development of the world’s automotive indu
In a parliament sitting last week, Minister of Entrepreneur Development and Cooperatives (MEDAC) Datuk Seri Dr Wan Junaidi Tuanku Jaafar explained why Malaysia lags in the automotive sector. "Focusing on the automotive sector, we can see that Proton and the government policies back then were stumbling blocks to the development of the national automotive industry,” said Wan Junaidi, in response to a question posed by Datuk Seri Ahmad Maslan (BN, Pontian) at the Dewan Rakyat sitting last Wednesday
Earlier this year, the NPM (National Platform Future of Mobility) predicted 400,000 car industry jobs in Germany could be gone by 2030. The NPM is a research agency funded by the German government. DW reports that the main reason behind this prediction is the rapid transition from internal combustion engines to electromobility, or electrification, accelerated by the EU's 2030 climate targets for the transport sector. Electric cars require 6 times fewer parts. Hence, far fewer workers are needed
It has been revealed that Perodua Suppliers Association (P2SA) and Perodua will be working together to draw up standard operating procedures (SOP) for the automotive industry. P2SA also claims that the extended Movement Control Order (MCO) to 18 February 2021 will help protect the industry until vaccination begins. P2SA president Musa Zahidin Ahmad Zaidee told Bernama that the association takes the safety of all their members seriously and making sure that all its employees are strictly adhering
A leaked memo from the EU-Malaysia Chamber of Commerce and Industry (Eurocham) to its members says that the manufacturing sector should prepare itself for a shutdown/strict lockdown if the Covid-19 situation doesn't improve. The memo adds that the organization’s CEO Sven Schneider had a meeting with MITI on 22-January and was told that the Ministry of Health (MoH) has made a clear stance for a complete shutdown of the economy if Covid-19 cases continue to rise. 99 of the 300 Covid-19 clusters in
Market research agency J.D. Power will be shutting down three of its international offices – Singapore, Bangkok and Sydney – as part of its reorganization under its new owner Thoma Bravo LLC, a US-based investment company. Operations in these three offices will be wound down in stages and by the middle of 2020, J.D. Power will only maintain three offices for the Asian region – Beijing, Shanghai and Tokyo. As J.D. Power’s businesses in Malaysia are managed out of its Singapore office, the reorgan
Proton has yet again lent a hand in the battle of Covid-19 by producing 60,000 face shields for Malaysian frontliners. The national carmaker will set up a production line at their headquarters in Shah Alam to produce these face shields used by a health worker’s Personal Protection Equipment (PPE) attire. Production is set to begin on 13 April and the target is to produce 60,000 face shields in 20 days. Proton has acquired permission from the relevant authorities to allow a small number of staff
When it comes to the Malaysian automotive industry, I’m sure the most obvious one that comes across your mind would be Proton or Perodua, the former national cars. But did you know that Malaysia has a couple of niche carmakers, namely TD Cars and Bufori? For now, as mentioned in the title, I’ll be focusing on the TD 2000, a product of TD Cars. It’s a replica of the classic MG TD from the 1950s, retaining the same body shape but with a more modern powertrain, a fibreglass body, and disc brakes. B
The recently announced 2020 National Automotive Policy (NAP) and recent changes in the government are not sitting well with car manufacturers operating in Malaysia. “It’s a bit unsettling. Less than a week after announcing an auto policy that doesn’t say anything meaningful, the prime minister is stepping down?,” said an executive at a German automotive brand. However, the executive remained optimistic about the mid-term prospects of Malaysia, and sees the current episode merely as a speed bump
The Ministry of International Trade and Industry (MITI) has released a list of companies that are allowed to operate during the second round of the Movement Control Order (MCO). Updated: MITI has done a U-Turn on the list of essential services, read more about it here. Update No.2: MITI has once again revised the essential services list, car factories will be allowed to continue operations effective immediately. On Monday (11/1/2021), Prime Minister Tan Sri Muhyiddin Yassin announced that MCO wi
The Indonesian government will remove the luxury tax imposed on cars below 1,500cc from March 2021 to May 2021. Reuters reports that the tax removal is to bolster the Indonesian automotive industry. Currently only LCGC (Low-Cost Green Cars) are exempted from the luxury tax. LCGC in Indonesia includes locally produced (CKD) hatchbacks, MPVs, and cars below 1,200 cc. The current luxury tax for sedans and other car below 1,500 cc is between 10% and 30%. The tax exemption for cars below 1,500 cc wil
Okay, readers, this has been rattling around my head for the past week. As Malaysians, it is our sworn duty to protect and support all things Malaysian. Our national flower is the hibiscus, the national animal – the Malayan Tiger, and our breakfast of champions – nasi lemak with a side of fried eggs and sambal ikan bilis. But when it comes to cars, it is a bit of a difficult choice with which to award as the Malaysian people’s car? Is it the Perodua Kancil, the city roundabout that gave many Mal
The Ministry of International Trade and Industry (MITI) is expected to backtrack on its earlier decision to remove automotive manufacturing from its list of essential services sectors, and will allow automotive manufacturing to resume operations next week. The government has yet to make an official announcement on the matter and those involved have been told to not speak to the media. However WapCar.my understands that discussions is almost complete and automotive manufacturing might be re-insta
Ruslin Tamsir is a Kuala Lumpur native who, through his expertise and fervent hardwork, has brought a Malaysian touch to the wild McLaren Senna. He recently went viral over his patented, fastener-less speaker enclosure for the hypercar - which is the focal point of this article. From humble beginnings... Ruslin is a man of many interests and for him, cars sit right at the top. So much so that it even influenced where he would study. “The reason why I choose to go to Germany is because I like car
We recently established a Malaysia Car Fans (WapCar) Facebook group where members can discuss, share and help one another on all things automotive. One particular poll by Facebook user Envy Issak who sought opinion on D-segment sedans caught our attention. Issak listed the Toyota Camry 2.5V, Honda Accord 1.5 TC-P while other group members added Volkswagen Passat Elegance, reconditioned Mercedes-Benz E-Class and a Mazda 6 wagon. To our surprise, the majority of the respondents picked the Camry 2.
China’s white goods manufacturer Hisense Home Appliances Group will acquire Japan’s automotive air-conditioning manufacturer Sanden for JPY 21.4 billion (about RM 809.7 million). The move will allow Hisense to diversify into the automotive air-conditioning system market. Hisense has ambitions to manufacture air-conditioning units for electric vehicles. In an announcement by Sanden made earlier this week, the company says Hisense will acquire 75 percent of voting rights in the company for 21.4 bi
Perodua will reduce its model prices (on-the-road excluding insurance) by between 3% and 6% via cash rebates until 14 June 2020, after which it will incorporate the new sales tax-free prices throughout the tax reduction period as recently announced by the Prime Minister. “Despite the tax reduction only becoming effective 15 June 2020, Perodua will offer cash rebates between 3% and 6% for the purchase of our vehicles beginning today,” Perodua President and Chief Executive Officer, Dato’ Zainal Ab
With the Movement Control Order (MCO) concluding in Selangor and the Federal Territory of Kuala Lumpur, motorsports springs back into action to jumpstart its activities that have been grounded to a halt for almost a year due to the COVID-19 pandemic. Among the first to announce the return of four-wheels racing was Toyota that is due to stage the opening round of its TOYOTA GAZOO Racing Festival and fourth season of the Vios Challenge racing series at the end of the month. Racing returns, albeit
Earlier this month, Hyundai started construction of a RM 1.22 billion, 30,000 electric vehicles a year plant in Jurong, Singapore. When completed in 2022, the Hyundai Mobility Global Innovation Center (HMGICs) will be the Hyundai Motor Group’s (which also include Kia) regional hub for electric vehicle (EVs) production and development. Out of the 30,000 EVs to be build there, about 5,000 to 6,000 units will be sold in Singapore, while the rest will be exported. The move comes as a surprise becaus
Following the announcement of the new National Automotive Policy (NAP) by the Ministry of International Trade and Industry earlier today, UMW Toyota Motor (UMWT) has released a statement saying that it welcomes and supports the government’s directions for the automotive industry. “We are pleased that the government has provided an updated ‘roadmap’ for the development of the industry and this will provide direction and guidance which will be of great value to forward planning, especially where i
Last week, we’ve chronicled how Hyundai grew from a small workshop to a world-class automaker. What was left out however, was the hows and the whys behind the rise of Korea’s car industry, which will be discussed in the following text. When Malaysia gained its independence, Korea was a failed state. It relied on donations from the US for 70 percent of its budget, and had nothing worth exporting. In 1960, Malaysia’s (Malaya) GDP per capita was USD 234. South Korea earned just USD 158 - poorer tha
Say what you want about Made in China because the Chinese have come a very long way from mass-producing cheap knockoffs to becoming the technology hub they are today. Huawei, Alibaba (yes Alibaba is a tech company) and Geely are now familiar names to the rest of the world. Although the latter only made its wave among Malaysians in 2017 after acquiring a 49.9% stake in Proton. Since then Geely-Proton partnership has made technologies such as 4G online connectivity, intelligent voice command, Adva
The Proton Saga has now made its way to Kenya as Proton has officially shipped its first batch of cars to the country. The Sagas were shipped to Kenya as completely knocked down (CKD) kits and will be locally assembled Nairobi for the country’s market. Kenya is just yet another country added to Proton’s list of export destinations this year. Earlier this year, Proton also launched the Proton X70 in Pakistan. The 30 Proton Saga kits will be assembled by Simba Corporation (Simba), a diversified co
Perodua has confirmed that the Malaysian government has revised the excise duty structure for cars in Malaysia, but added that the impact for Perodua will likely be minimal and the company will try its best to not pass any additional cost to buyers. Speaking at a press conference earlier today, President and CEO Datuk Zainal Abidin Ahmad said, “For Perodua, we have been following all the requirements given by the government, as far as declaration is concerned. At the moment, we are still evaluat
The ongoing Movement Control Order (MCO) will hit business hard, as almost all retail businesses grind to a halt. The Malaysian Automotive Association (MAA) had originally forecasted 2020’s total industry volume (TIV) – an industry term total new vehicle sales – to be at 607,000. RHB Investment Bank’s own forecast had originally put 2020’s TIV to be at 595,000. Last year, Malaysia's TIV was at 604,287 units. With car dealers selling almost zero cars for at least a month (MCO runs from 18-March t
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