Tuesday, 6 October 2009

National Car Status

National Car Status....

1. The National Automotive Policy (NAP) was introduced on 19 October 2005 to SPUR the growth of the automotive industry in Malaysia through 5 objectives and 10 measures (to achieve the objectives) (see: NAP) . The revised NAP is expected to be announced soon.

2. The first objective of the NAP 2005, was to promote a competitive & viable automotive sector, in particular NATIONAL CAR manufacturers. What is the definition of a National Car?

3. Initially, a national car status would entitle the manufacturer with an exemption on import duties for CKD components and will receive a reduction of 50% on the excise tax resulting in a potential 20-30 percent price differential.

4. Currently there are 4 brandnames that is accredited or claimed to be a national car, namely Proton, Perodua, Naza Kia and Inokom... although the official announcement was only made for Proton, Perodua and NAZA RIA (not NAZA brandname).

5. The National Car status is awarded to manufacturers that comply to a minimum 'local content' percentage but according to a source, there was never a clear guideline on the actual percentage requirement of local content but industry source says only 40% local content was required.

6. Another requirement to be accredited as a 'national car' is to brand it a local name... hence the re-badging of name from Daihatsu to Perodua, Kia to NAZA.

7. The definition of what constitute a NATIONAL CAR should be re-visited.

8. It is no longer suffice for any manufacturer to be accredited a National Car status with only 40% local content (or whatever the percentage).

9. National Car should be a symbol of nasionalism and patriotism. A citizenship of the car sort of speak and should not be abused by Koreans or Japanese. It should be Malaysian DNA in the car and not Korean, Japanese or other countries.

10. When the national car project was launched 24 years ago in 1985; Proton began with the 'Rebadging' of Mitsubishi cars. 15 years later, Proton had acquired the necessary technical and technological know-how, to manufacture and gave birth to the first Malaysian car, Proton Waja. Proton Waja was designed, Researched & Developed and engineered by Malaysians.

11. Todate, Proton had given birth to 6 Malaysian made cars (from drawing board), with Malaysian engineering, Malaysian designs, Malaysian Technology, Malaysian Research and Development (R&D) and the team driven by Malaysian people (aka Malaysian DNA); namely Proton Waja, Proton Gen2, Proton Saga, Proton Savvy, Proton Neo and Proton Persona.

12. Perodua RE-BADGED and launched Perodua Kancil in1994. 15 years later, Perodua is STILL re-badging ALL PERODUA cars using Japanese design, Japanese technology, Japanese engineering, Japanese research & development, a project driven by Japanese. There were no Malaysian DNA except for bigger tyres and more spoilers.

13. To entice other foreign motor vehicle manufacturers worldwide to give birth and launch their new cars in Malaysia (and export to other country from Malaysia) and not just re-badging their cars, the National Car Status should be revisit and redefine.

14. The Malaysian National car status should be accredited to any manufacturers (NOT restricted to Proton) that invested in their design, R&D, engineering and technology in Malaysia.

15. Manufacturers whom are then awarded the National Car status should be supported and rewarded. The title National Car should be a prestige title with incentive (for R&D).

16. Now, National Car status no longer received any governmental grants, funds or incentives. All government grants, funds, incentives are extended to any qualified automotive manufacturer with a specific guideline requirements by Ministry of International Trade & Industry and Ministry of Finance.

17. Without any perks and benefits, National car status is only a symbol of nationalism which is why it is imperative for the National Car status to be re-define.

16. MALAYSIAN are NOT ENTIRELY DEPRIVED of a CHEAPER CARS because of Proton but instead DUE TO LACK OF ECONOMIES OF SCALE.

17. There are four (4) passenger & commercial vehicle manufacturers and 9 motor vehicle assemblers. All vehicle manufacturers & assemblers are under-utilized by more than 60%.

18. There are 21 Tier 1 vendors out of the 343 motor vehicle components and parts manufacturers whose capacity are also under-utilized.

19. Since the Government via Ministry of International Trade & Industry issues all the licences for vehicle manufacturers, assemblers and motor vehicle component & part manufacturers, the Government can via the soon to be revised National Automotive Policy, consolidate and rationalise the manufacturing and assembly plant as well as the vendors to attain a better economies of scale.

20. Once vehicles can be produced cheaper with the economies of scale, we will have the competitive edge to increase our automotive export.

21. Malaysians too will enjoy cheaper cars.

22. Nonetheless, there were other precedents such as the Banking, Insurance and Palm oil industries that was consolidated for the benefit of the public, industry and national interest.


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