Malaysian automotive industry

Malaysia’s National Automotive Policy is succeeding with its goal of making sure the sustainability of the domestic automotive business, a senior industry official claims.

Malaysia Automotive Institute CEO Madani Sahari tells neighborhood media he's confident the objectives of this NAP are going to be attained by its target date of 2020.

The NAP encourages Malaysia as a local automotive hub for energy-efficient automobiles and Madani claims certainly one of its primary objectives is to entice domestic and international investments in to the EEV sector.

“A total of 8.9 billion ringgit ($2.5 billion) has-been invested in the Malaysian automotive business on the very first nine months of the year, ” Madani informs the New Sunday days CBT.com site.

This consists of MYR2 billion ($572 million) by to make its new EEV, the Axia, and ’s plans to expand its assembly plant to produce EEVs for Malaysian and export markets.

“Swedish automobile manufacturer Volvo, having recently shuttered its Thai factory, has become concentrating on Malaysia to optimize NAP 2014 bonuses by broadening its manufacturing plant in Shah Alam for domestic and ASEAN (Association of Southeast Asian countries) areas, ” he claims.

China-based Great Wall, working with Malaysia’s GO Automobile, is spending RMB1 billion ($286 million) to create EEVs in their manufacturing plant. Initial period regarding the task will see manufacturing at a consistent level of 25, 000 units per year, increasing to 50, 000 because of the end of 2015 and 100, 000 in 2018.

is spending RMB1 billion to grow its Malaysian plant to add hybrid-car production, increasing its annual ability to 100, 000 units.

The NAP is designed to market the creation of a competitive automotive industry when it comes to employment, technology development and supply-chain improvement.

In the 1st nine months of the year, Madani claims, work within the sector rose 7, 500 to top 500, 000.

Overseas Trade and business Minister Mustapa Mohamed states his ministry will detail the progress for the NAP 2014 in January, including information on businesses likely to setup EEV facilities.

“Whatever we do, (the area industry) must certanly be competitive and this will depend on high quality and cost, ” the government’s Bernama news agency quotes him as informing the Malaysian Parliament. “If the quality of the automobile is great while the price is reasonable we could offer the automobile. We cannot force the customers buying neighborhood cars. We Need To convince all of them for the top-notch the vehicle.”

Mustapa says Malaysia however imports much more cars than it exports.

“I am not very happy because exports of Malaysian services and products, especially in automotive industry, remained low, ” he states. “Last year, we exported only about RMB900 million ($257.4 million) in contrast to imports of RMB12 billion ($3.4 billion).”

Likewise, the auto-components sector makes up about RMB4 billion ($1.1 billion) in exports and imports of RMB8 billion ($2.2 billion), Bernama quotes Mustapa as saying.

Somewhere else, Bernama claims about RMB3 million ($858, 000) will likely to be invested in 2015 to start 300 more electric-vehicle asking programs all over the country in a quote to boost interest in EVs in Malaysia.

The programs is based in significant places where high EV penetration is expected in coming years.

The country today has 40 EV recharging stations, 10 of them in government offices.

Funding will come from government-managed Malaysian Electricity Supply Industries Trust Account plus the channels are set up by an area business, very first Energy systems.

Bernama claims the charging you channels are crucial for Cohesive Mobility Solution (Comos), an EV car-sharing program launching the following year. Comos, an alliance between Malaysian Automotive Institute, CMS Consortium and Greentech Malaysia, is designed to raise the EV automobile fleet to 3, 500 devices nationwide by 2020.