The Malaysia Automotive Institute (MAI) is an agency under the Ministry of International Trade and Industry (MITI)
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2 The Malaysia Automotive Institute (MAI) is an agency under the Ministry of International Trade and Industry (MITI) We are a think tank, tasked to strengthen the Malaysian automotive sector. An Intermediary between stakeholders in Malaysia's automotive community. We Formulate policies & coordinate Strategic Implementations. 2 Research Technology Human Capital Supply Chain Outreach
3 Table of Content I. Introduction II. EEV III. Challenges IV. Moving Forward 3
4 Table of Content I. Introduction II. EEV III. Challenges IV. Moving Forward 4
5 AUTOMOTIVE s GDP CONTRIBUTION Automotive industry in Malaysia has remained progressive over the years and has recorded positive contribution to the nation GDP ranging from 3% to 4%. It is expected that the industry will continue to spur the Malaysian economic growth with higher contribution towards GDP. GDP, % RM27 Mil. RM24 Mil. RM26 Mil. RM30 Mil RM19 Mil. RM14 Mil *RM = Output Value 5
6 INDUSTRY VOLUME Unit 700,000 MALAYSIA TOTAL INDUSTRY VOLUME , , % 400, , , , %
7 ENERGY DEMAND & SECURITY Transportation is the nation highest energy consuming sectors relying primarily on petrol and diesel. Road transport is the main energy consumer, consuming 80% of the total energy requirement in the transportation sector, followed by aviation, maritime and railways. Continuous rising in energy demand, compounded by the instability of oil prices and fuel subsidy, has set the transport sector on the path towards fuel non-sustainable situation posing a threat to national energy security. 10% 7% 3% 80% Energy Consumption Breakdown in Transport Sector Road Transport Air Transport Maritime Railways 7
8 ENVIRONMENTAL IMPACT Based on latest data attained, Malaysia recorded total of 216 million metric tonnes of CO2 per annum. Motor Vehicle (passenger vehicle, commercial vehicle and motorcycle) is the highest contributor in term of Malaysia s CO2 emission source. 1.6% 1.0% 0.2% SOURCES CO2 EMISSION (Metric Tonnes) Motor Vehicle 1,410 k 97.1% Power Station Industrial 23 k 14k Motor Vehicle Power Station Others 3k Industrial Others 8
9 TOWARDS SUSTAINABILITY 9
10 Table of Content I. Introduction II. EEV III. Challenges IV. Moving Forward 10
11 NAP 2014 FRAMEWORK 11 D I R E C T I O N S T R A T E G I E S Investment Hub for Energy Efficient Vehicles Attract selected FDI Encourage strategic DDI Supply Chain Development Meeting global Efficiency and Effectiveness Safety, Security & Environment Carbon Reduction Fuel Efficiency Preserving Natural Resources Technology & Engineering In line with Latest Technology Adopt & Adapt Infrastructure Streamline R&D Market Expansion Manufacturer OEMs Vendors After Sales Remanufacturing Human Capital Development Adequate competent manpower at all levels
12 NAP THRUST & ROADMAP 2014 Development of Automotive Authorized Treatment Facilities Framework (ATFR) Malaysia Automotive Remanufacturing Roadmap ASEAN HUB FOR AUTOMOTIVE MANUFACTURING AFTERMARKET Malaysia Automotive Technology Roadmap (MATR) Market Expansion & Outreach Human Capital Dev. Roadmap (HCDR) Technology & Engineering Human Capital Development EEV MANUFACTURING Malaysia Automotive Supply Chain Dev Roadmap Investment Supply Chain Development Safety, Security & Environment 12
13 ENERGY EFFICIENT VEHICLES (EEV) 13
14 ENERGY EFFICIENT VEHICLES (EEV) EV PHEV Hybrids Fuel Cell Low Fuel Consumption Low emissions High Efficiency Mono-Fuel Bi-Fuel Dual-Fuel CNG-DI Bio-Diesel B5 Euro 4 14
15 EEV SPECIFICATION FOR 4-WHEELERS SEGMENT DESCRIPTION CURB WEIGHT (KG) FUEL EFFICIENCY (L/100KM) A Micro Car < City Car 801 1, B Super Mini Car 1,001 1, C Small Family Car 1,251 1, Large Family Car 1,401 1,550 D Compact Executive 7.0 Car E Executive Car 1,550 1, F Luxury Car 1,801 2, J Large 4x4 2,051 2, Others Others 2,351 2,
16 EEV SPECIFICATION FOR 2-WHEELERS ENGINE SIZE (CC) FUEL EFFICIENCY (L/100KM)
17 ENVIRONMENTAL-FRIENDLY VEHICLES: ASEAN Major ASEAN automotive markets countries have started to introduce and implement fiscal incentives to encourage production and ownership of environmentally-friendly vehicles. THAILAND Eco-Car Programme INDONESIA Low-Cost Green Car MALAYSIA Energy-Efficient Vehicle description Applicable for manufacturing of vehicle of 1.3L and below. Fuel consumption of 5l/100km and emit lesser than 120g/km. Tax incentives for the purchase of eco-car at 17% compared to normal car from 30% to over 50%. Main requirements for this programme are manufacturing vehicle with engine capacity 1.2L and below with fuel consumption of 20km/l (5l/100km). Incentives including tax exemption on vehicle registration and reduction or luxury goods tax. EEV is a vehicle that meet a set of define specification in terms of emission level and energy usage. Covers fuel-efficient ICE car, hybrid, EV (including FCV) and alternative-fuelled vehicle. segment 17
18 MALAYSIA TOWARDS EEV : EEV MATURATION 18
19 MALAYSIA TOWARDS EEV : EEV MATURATION ICE Full Utilization Development and Market Entrance for Vehicle with Greater Fuel Efficiency *Significant growth of dieselbased vehicle in passenger segment *Growth of Alternative-Fuel (Bio-Diesel, Bio-Ethanol etc.) Hybrid Market Entrance Full Utilization Demand for Mild and Full Hybrid Electric Vehicle Full Utilization of Plug-in Hybrid Electric Vehicle (PHEV) Electric Development Phase Market Entrance Fuel- Cell **Notable Growth of EV for City Consumption Development Phase 19
20 NAP 2014 AND MATR CORRELATION GREEN VEHICLES TECHNOLOGY TECHNOLOGY ENHANCEMENT EEV SAFETY VEHICLES MANUFACTURING ECOSYSTEM NAP 2014 ENVIRONMENTAL COMPETITIVENES TECHNOLOGY ENHANCEMENT & OPTIMIZATION 20
21 Table of Content I. Introduction II. EEV III. Challenges IV. Moving Forward 21
22 CHALLENGES Private vehicle ownership is very much in high demand despite numerous efforts to promote expansion and utilization of public transportation. While growth of vehicle sales is increasing every year, it is vital for OEMs to promote fuel efficient and environmental friendly vehicle. Government is facilitating the needs of every OEMs in ensuring they would be able to produce technologies that promote better fuel efficiency performance thus lower carbon emission. Depending on the strategies of each of OEMs, areas of improvement and innovation also includes bodyweight, ergonomics, powertrain technology etc. NAP 2014 EEV However, to complement efficient engine performance there s a need for a better fuel quality in place. Nowadays, OEMs are producing engine technologies that works with higher grade of fuel (e.g. EURO 4, EURO 5) with ultra low sulfur content resulting in better environmental impact. 22
23 COUNTRIES COMPARISON In comparison to other countries especially ASEAN, Malaysia currently the only country that is still implementing EURO 2 of fuel standards. Country Indonesia EURO 2 EURO 3 Malaysia EURO 2 Euro 4 Singapore EURO 4 Thailand EURO 3 EURO 4 EU EURO 4 EURO 5 Japan Equals to EURO 3 Equals to EURO 4 Equals to EURO 5 23
24 MALAYSIA FUEL QUALITY ROADMAP EURO 4M PETROL RON97 Sept 2015 EURO 4M PETROL EURO 5 DIESEL EURO 5 PETROL RON95 Oct Sept RON95 & 97 Sept
25 Table of Content I. Introduction II. EEV III. Challenges IV. Moving Forward 25
26 MOVING FORWARD STANDARDS OBJECTIVES PLAN FUEL QUALITY Transition from EURO 2M fuel (500 ppm sulphur) to EURO 4 (50ppm sulphur) & EURO 5 fuel standards in encouraging latest vehicle technology for consumer. Government has allowed for any oil companies to supply higher grade of diesel fuel (EURO 4 EURO 5). Currently EURO 5 diesel is available in the southern part of Malaysia (Johor State). FUEL EFFICIENCY Fuel economy standards will educate consumer towards better fuel efficiency via vehicle economic labeling etc. Explore possibility of Fuel Economy labelling as a source of information to consumer as well as incentives promotion. EMISSIONS Carbon emission is directly related to fuel efficiency. Targets for lower / zero emission through the promotion of Hybrid Electric vehicle, Electric Vehicle, Hydrogen Fuel Cell and Alternative Fuel-powered vehicle. Explore possibility to encourage production and consumption of low carbon emission vehicle through tax rationalization (e.g. CO2-based Excise Duty etc.) 26
27 thank you 27
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