Source: Monthly reports of the Malaysian Automotive Association (MAA).
The Total Industry Volume (TIV) of new sales in May was 12% lower than the TIV for April, dropping below 50,000 units. Contributory factors were the reduced number of working days due to the Hari Raya Aidilfitri holidays but of great impact was the shortage of new vehicles to deliver.
Many car companies have a large number of orders but cannot fulfill them as the auto industry continues to be affected by the global microprocessor shortage and logistics delays. As the microprocessors are essential for the many electronic systems in today’s cars. their inavailability means the cars cannot be completed.
Compared to the same month in 2021, the TIV this year was 5% higher and when the cumulative volume for the first 5 months of 2022 is compared to the same period in 2021, the deliveries are higher by 7.4% at 264,656 units.
Although there is the microprocessor shortage and other issues affecting production, the assembly plants around the country were able to produce 16% more vehicles than for the same month in 2021, This year, total output was 49,154 units, made up of 45,518 passenger vehicles (excluding pick-up trucks) and 3,636 commercial vehicles (including pick-up trucks). The latter segment saw a bigger increase of 54% in volume compared to May 2021.
The Malaysian Automotive Association (MAA) expects sales in June to be higher. With no further extension of the sales tax exemption confirmed, many car-buyers will be rushing to place their bookings before the end of the month when the exemption ends. However, the Finance Ministry recognises that the industry has been having difficulties supplying vehicles to meet the backlog of orders and will allow those who book before June 30, 2022 to enjoy the exemption even if they do not get their new vehicle by then. However, they must get it registered by March 31, 2023.
Commercial vehicles from China have been around for some time although their presence has not been so noticeable as they have sold in small volumes and in areas outside the usual business centres. Now it seems that is changing, perhaps inspired by Geely being a dominant player through Proton.
Angka-Tan Motor Sdn Bhd (ATM), a subsidiary of Warisan TC Holdings and member of Tan Chong Group, is one of the companies that is now focusing on products from China and among the brands it represents is Foton. Headquartered in Beijing, the Foton Motor Group was established in1996 and produces light and heavy commercial vehicles as well as construction machinery. Its cumulative production and sales volume since 1996 is more than 10,000,000 vehicles.
As sole distributor of Foton Light Commercial Vehicles (LCV) and Foton Auman in Malaysia, ATM aims to make deeper inroads into the commercial vehicle segment. It is now introducing the Aumark S City Flyer 4-Wheeler BJ1065 light-duty truck which can cater to the logistics industry in the country. This new model joins the Aumark S Super Truck 6-wheeler which was launched in Malaysia in December 2020.
The Aumark S City Flyer is said to offer fleet owners high productivity and efficiency in their business operations. The model is available in two versions – the VDJD4 and VDJD6 – with wheelbases of 2800mm and 3360mm, respectively.
Power comes from a 2.8-litre Euro-3 turbodiesel engine. The engine is one of the latest generation powertrains from Cummins and produces 129 bhp/310 Nm for speed and agility. Matched to the engine is a 5-speed manual transmission by ZF. With its aluminium alloy casing and optimized gear ratios, it has high transmission efficiency and low fuel consumption, The optimized turbinate gear design also effectively reduces noise, which will have a positive effect on the driver.
The City Flyer has a light and flexible bodywork with a gross vehicle weight (GVW) of 5.6 tonnes. This is a top feature in the 4-wheeler category and is ideal for inner-city and intra-city trips, allowing operators to carry more payload per trip.
The cabin has been designed to give the driver and co-driver more comfort and reduce fatigue during long driving journeys, improving safety. The seats are enhanced with an extended foaming life and wear-resistant fabric. There’s also a platform water cupholder and overhead file cabinet.
Even truck drivers deserve good protection when they operate their vehicle and the Aumark S City Flyer is engineered to meet European safety standards, particularly the stringent ECE R29 regulations. Tests have been conducted and it fully complies with the safety requirements.
For stable braking, there ABS to prevent the wheels from locking up during heavy braking. Electronic Brakeforce Distribution (EBD) and Brake Assist help to enhance braking performance, especially in emergencies.
A Foton truck undergoing endurance tests in high temperatures.
“Safety and reliability are paramount; all Foton trucks are manufactured according to the most stringent of standards and are also in line with Foton’s ‘SUPER’ promise. Ensuring this, the Aumark S City Flyer development work has gone through a 1.6 million kilometre extreme environmental durability testing to guarantee exceptional ability in weathering the harshest of environments,” said Danny Ng, Senior General Manager of ATM.
At this time, there are no airbags fitted although Foton does provide them in some markets. For now, the view is that cost considerations are of a high priority to customers and therefore, the added cost of airbags may not be agreeable. Nevertheless, ATM will keep the safety feature in mind and consider its inclusion in future.
“As inflationary factors creep in, eg fuel price increases, we are seeing increasing demand from business owners looking out for vehicles that are able to deliver efficiency, productivity and uptime. The all-new Foton Aumark S City Flyer 4-Wheeler BJ1065 series meet these criteria and is able to help them swiftly achieve their business objectives,” said Tan Keng Meng, CEO of Warisan TC Holdings Bhd.
All Foton commercial vehicles in Malaysia come with Foton Total Care. Fleet owners will be supported by the Tan Chong Group’s service centre network which has been extensive established nationwide since the late 1950s. ATM will ensure that Foton genuine parts are stocked to ensure that fleet owners can keep their vehicles running optimally and productively.
Additionally, customers can opt for the TC Trust. This is a service agreement that is designed to optimize Foton trucks’ total cost of ownership and provide a hassle-free fleet maintenance management.
The Foton range of commercial vehicles available in Malaysia.
In addition, there is also driver training and development to enhance the drivers’ skills and become more fuel-efficient in the way they drive, translating to higher uptime and lower operational costs. In case of emergency, there are also the 24-hour Res-Q service and the One-Stop Repair and Insurance Service available.
The Aumark S City Flyer 4-Wheeler BJ1065VDJD4 (2800 mm) is priced at a recommended retail price from RM93,900 and the BJ1065VDJD6 (3360mm) is priced from RM95,900 for Peninsular Malaysia. For East Malaysia, the prices are RM100,900 and RM102,900, respectively. A 5-year/200,000 km (whichever comes first) warranty is provided with each new unit.
Perodua is relieved that the Ministry of Finance (MoF) will allow car-buyers to remain entitled to the sales tax exemption even though the provision ends at the end of this month. A recent announcement by the MoF said that those who book their vehicle by June 30, 2022, will still pay the lower price even if their vehicles are not delivered yet.
However, manufacturers will have to deliver the new vehicles to them before March 31, 2023 as that is the latest date they must register their vehicles if they want to enjoy the sales tax exemption.
“We sincerely thank the government for this announcement as it gives the industry and the market breathing room to meet consumers demand while at the same time give the players time to overcome various issues that are affecting the industry,” said Perodua President & CEO, Dato’ Zainal Abidin Ahmad.
He said among the issues that are currently impacting the local automotive suppliers range from the lingering impact of COVID-19, the component shortages and manpower shortages. These have led to vehicle supply shortages as vehicles cannot be completed. As a result, customers have had to wait longer and have been concerned that they will miss out on their tax exemption benefit if they get their vehicles are June 30.
“The issues are currently being addressed as Perodua and our suppliers are finding solutions and this registration extension will give us much needed room to overcome the issues,” Dato’ Zainal said. He added that, for Perodua’s customers, this announcement gives them much needed reassurance that they would be able to enjoy the sales tax exemption incentive that has boosted the industry since the year 2020.
Myvi remains the bestselling model for the Malaysian brand.
“To date, we have significant outstanding orders which we are working to fulfil. We appreciate our customers’ patience in this regard,” Dato’ Zainal said. On deliveries so far, he said that Perodua has registered 106,179 vehicles between January and May this year, which is 10% more than 96,281 units registered in the same period last year.
In terms registration according to model, the Myvi remains the most popular with 31,689 units registered in the first 5 months of this year. Next has been the Axia with 24,024 units delivered, and the Bezza at 23,336 units.
To know more about Perodua products and services or to locate a showroom for a test-drive, visit www.perodua.com.my.
Some people may regard vehicle recalls to fix manufacturing defects in a negative way, perceiving them as evidence that the brand’s products are unreliable or poorly made. However, in mass production where millions of parts and vehicles are made, there are likely to be some times when something is wrongly done or made. Nevertheless, over the years, manufacturers and their suppliers have cut down these defects to very tiny percentages.
When a manufacturer does detect a defect, it has the responsibility to its customers, especially if it concerns something that concerns safety. A responsible manufacturer will therefore conduct a recall of the affected vehicles, and provide the necessary replacements at no cost to the customer. So customers should be happy when their manufacturer does that – although frequent recalls would be another matter…
Honda Malaysia has done recalls from time to time, its most massive exercise being to replace the Takata airbag inflator module. That was a crucial recall as there was a very high risk of people being seriously injured or even dying if the module broke up.
Now comes another recall (two different ones actually) which the company says is proactive, meaning it is a precautionary safety measure as no incidents have been reported. In the first one, technicians will inspect the nut torque on the Alternating Current Generator (ACG) to determine if it is correctly tightened on the ACG terminal of the engine harness. If not, there may be poor contact and a battery malfunction which may lead to engine stoppage while driving or being unable to start the engine after the car stops. The models affected are 1,068 units of the City (2021) and City Hatchback (2022)
The second issue requires inspection of the bolt earth grounding tightness, also to check if the tightening of bolt earth grounding is correct otherwise the wire harness will be loose. This may cause poor contact terminal and may result in engine stoppage while driving or being unable to start the engine after the car stops. The models affected are 343 units of the HR-V (2020) and 116 units of the BR-V (2021). All the models affected were assembled at the Honda plant in Melaka.
Honda Malaysia apologises for the inconvenience caused to the affected customers and assures the public that all current production and selling models are not affected in this recall. The company believes this product recall is necessary as customer safety is Honda Malaysia’s top priority, and will continue to uphold transparency and stringent controls.
Owners of the affected vehicles will be informed via notification letters which will include details of the recall. Honda Malaysia urges those with affected vehicles to contact any authorised Honda dealer in Malaysia to make an appointment upon receipt of the notification. They can then bring their vehicles for inspection and necessary action (subject to parts availability). The inspection, repair and replacement of affected parts are free of charge and all costs related to this recall activity will be borne by Honda Malaysia.
In the event that you are not the original owner (whose records will be with Honda Malaysia) but want to check if your vehicle is affected and obtain the necessary support, call Honda Malaysia’s toll-free number at 1-800-88-2020.
The Hyundai Motor Group (HMG) aims to capture a 7% share of the electric vehicle (EV) market by 2030, by which time it expects to be selling 1.87 million vehicles annually. To achieve this goal, the Korean carmaker will invest around 19.4 trillion won (US$16.10 billion) in EV-related businesses.
Besides its own investments, it will also work with other parties in various fields of expertise and one of them is Michelin. A MoU (Memorandum of Understanding) was signed recently for collaboration on R&D for innovative tyre technologies over the next 3 years. These technologies will be used in the development of next-generation tyres optimized for premium EVs.
The MoU is the second one between the two companies, following the successful completion of their first partnership. This collaboration will lead to a new journey towards developing next-generation tyres to be equipped with the Group’s clean, smart and sustainable mobility solutions.
“This partnership with Michelin will result in real innovations in tire technology, solidifying Hyundai Motor Group’s position as a leader in the smart mobility industry,” said Bong-soo Kim, Vice-President and the Head of Chassis Development Centre at the Hyundai Motor Group. “By fully leveraging our mobility technology and Michelin’s tyre expertise, we are confident in our ability to achieve ground-breaking innovations in tire performance enhancement and create synergies in this organic collaboration.”
In the previous 5-year partnership that began in November 2017, the companies jointly developed an exclusive tyre for the IONIQ 5 EV. There were also joint experiments and analysis methods carried out which were related to tyres as well as technology exchange.
Over the next 3 years, HMG and Michelin will jointly develop the following innovations: eco-friendly tyres with increased use of eco-friendly materials; tyres optimized for next-generation EVs; and a real-time tyre monitoring system which will help advance autonomous driving technology.
The tyres for the IONIQ 5 EV were jointly developed by Hyundai and Michelin.
“The collaboration between Hyundai Motor Group and Michelin over the past 5 years contributed to the successful launch of the Hyundai IONIQ 5,” said Georges Levy, Executive Vice-President of Automotive Original Equipment at Michelin. “We are pleased to announce that the relationship has been extended for 3 more years to continue our work together on new technologies in favour of safer, cleaner mobility. The association between Hyundai Motor Group and Michelin is founded on the same vision and on a shared passion for excellence, performance and innovation that have become increasingly essential factors as we rise to the mobility-related challenges we all face today.”
The next-generation tyres will be installed on future premium EV models of HMG. The new tyre technology is critical to meet the durability requirements of tyres, as well as driving performance and electric efficiency under high load as the driving range of EVs continues to increase.
There will also be joint research to analyse tyre wear, tyre load and road friction beyond the current standards of tyre temperature and air pressure. The new tyres are also expected to significantly improve ride comfort by reducing vibration and noise generated by EVs at high speeds.
Additionally, there will be research into ways to increase the use of eco-friendly materials in tyres to about 50% of the total tyre weight from 20% currently.
New vehicle prices in Malaysia are high due to the high tax rates imposed and because taxes from vehicle sales contribute such a huge amount of revenue, the government has never been able to bring itself to lower tax rates. However, as part of the national recovery plan to boost the nation’s economy after the depression caused by the COVID-19 lockdowns, sales tax was exempted to lower purchase costs.
As always, being able to sell cars at lower prices helps, and the the exemption was initially given from mid-June 2020 to the end of that year. The lowered prices attracted many to buy new vehicles, in spite of uncertainties about the future due to the pandemic. The brisk sales certainly helped the car companies in their recovery and it was hoped that the exemption could be extended a bit longer.
The Finance Ministry agreed and gave another 6-month extension to the end of June, 2021. The exemption applied to vehicles assembled locally as well as those imported in CBU (Completed Built-Up) form. The former would get full exemption of sales tax which is 10%, while the CBU models would qualify for half the exemption, ie 5%. However, the exemption was not applicable to commercial vehicles and pick-ups.
Appeals by the Malaysian Automotive Association (MAA) for a further extension saw the Finance Ministry allowing another period of exemption till the end of 2021. While demand remained high, the industry was hit by the global microprocessor shortage which affected production of vehicles, and the industry asked for another extension as it was still recovering. The Finance Ministry was again agreeable, allowing the extension to the end of June 2022.
RM4.7 billion tax not collected
To date, a total of 868,422 units of vehicles have been sold (during the period of sales tax exemption) and the government has sacrificed RM4.7 billion of taxes, according to the Finance Ministry.
In the past month, the industry has been hopeful that the government will again extend the exemption till the end of 2022. But this time, it looks like the expiry date will not change. The government believes that with the opening of the economic sector, the automotive sector has returned to normal operations.
It does recognise that there are supply issues due to the microchip shortage that prevents vehicles from being completed, and therefore there is a backlog of orders to be met. Many who have made bookings months ago are concerned that they will not enjoy the lower prices with tax exempted if their vehicle is not delivered and registered by the last day of this month. The Finance Ministry is aware that at least 264,000 vehicles already ordered during the exemption period have not been delivered to buyers due to not being available.
The global shortage of microprocessors used in vehicle electronic systems has affected production and there is a shortage of vehicles for delivery.
Register vehicle by March 2023
As a compromise, while the government will not extend the exemption period, it will allow those who have booked new vehicles up till June 30, 2022 to have the exemption even if their vehicle is not delivered yet. They must however register the new vehicle with JPJ by March 31, 2023, which should be enough time for delivery.
“The extension of the vehicle registration period is a mid-point solution to balance the interests of consumers and national tax revenue that needs to be increased post-pandemic to ensure the welfare of the people and the country’s economic well-being continue to be preserved,” said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
So if you thought that because there’s a long backlog of orders for the vehicle you want to buy and there is no point booking now, if you do so before the end of the month, you will still enjoy the lower price with sales tax exemption.
