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BEV

The smart brand is among the younger automotive brands in the world, with its original concept of a compact city car having been conceived in the early 1990s. And it wasn’t just a basic car with compact dimensions; the brainchild of Nicolas Hayek, the man who created the Swatch watch, it was to be cheap, trendy and practical for almost anyone – like the watches.

Hayek believed there was a market for such a car, especially with the congestion in cities. But he also realised that he knew a lot about making watches… but little about making cars. So he knocked on the doors of Renault and VW, but they were not interested. Little did he know then that Mercedes-Benz had noticed his idea in 1993 and it matched their idea of a city car which they had been exploring for many years.  

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While the move towards electric vehicles (EVs) has been going on over the past decade, it has only recently gained more attention from the Malaysian government which sees increased use of EVs as one way to meet its carbon neutrality goal by 2050.

While promotion of EVs and providing incentives like tax exemption are approaches being taken, government agencies also need to have a greater understanding of these new energy vehicles in order to formulate the appropriate policies for years to come.

The auto industry is also playing its part to help in different aspects and GWM Malaysia, the local subsidiary of China’s Great Wall Motors, is among those keen to work closely with the authorities. As an example of the support it can give, GWM Malaysia recently presented an ORA GOOD CAT 500 Ultra to the Ministry of International Trade and Industry (MITI) to use for test-drives over the next few months to learn more about EVs.

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At the 2021 Los Angeles Auto Show, Kia displayed the Concept EV9 which was expected to be the new flagship SUV of the brand. And with electrification underway, it would be a battery electric vehicle (BEV). 16 months later, here are the first pictures of the production model – Kia’s first 3-row electric flagship SUV – with the official global debut to take place towards the end of the month.

“The Kia EV9 breaks new ground, aiming to redefine standards for design, connectivity, usability and environmental responsibility,” said Karim Habib, Executive Vice-President and Head of the Kia Global Design Centre. “The Kia EV9 offers customers an exceptionally high-quality proposition and a fresh EV perspective in the family SUV sector. This new vehicle typology provides instinctive experiences and excellent comfort for not just the driver, but all occupants, through innovative use of space, technology and design.”

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Although activity in the electric vehicle (EV) market in Malaysia has increased substantially in the last year due to the government allowing duty-free importation and sale, with many brands (even new ones) introducing their EV models, we have not heard from Edaran Tan Chong Motor (ETCM) which began marketing the world first mass-produced EV – the LEAF – twelve years ago.

Using its own funding, ETCM had taken the initiative to provide information to the public about EVs and the benefit of their zero emissions to the future of the planet. However, the government then was not proactive in addressing climate change until it signed the Paris Agreement in 2015 and made the commitment to become carbon-neutral by 2050. This meant taking various actions, including promoting the use of EVs.

ETCM continued to offer the LEAF, and when it went into the second generation in mid-2019, it began importing the model for sale in Malaysia. However, without the government incentives, its price was high and interest was therefore limited.

The LEAF is still in its second generation and received improvements not so long ago, so ETCM was probably waiting for the updated and better model to be available and it is now ready for sale. With the tax exemption, it is now priced at RM168,888 which is RM20,000 lower than when it was launched in 2019. This would be as low as it can get unless it is assembled locally and would then get additional incentives.

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The basic idea of an electrified powertrain is that there is one electric motor (or more) powering the wheels which receives electricity from a battery pack. Besides these two main elements, there are also ancillary systems which support their operation. In most cases, each is a separate component in the drivetrain.

Nissan has announced a new approach which it will take to electrified powertrain development, which it calls ‘X-in-1’. Under the approach, core EV and e-POWER powertrain components will be shared and modularized. This can bring about a 30% reduction (compared to 2019) in development and manufacturing costs by 2026.

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Going by normal industry time-frames, a model generation lasts around 5 years or sometimes a bit longer, after which a new generation is launched. Before that time, there are the usual updates to freshen the product against newer rivals. These are usually termed ‘facelifts’ which actually relates to cosmetic changes but there are occasions when there are also technical changes.

But then again, this is a new era of electric vehicles (EVs) and who’s to say that carmakers can’t revise the product cycle time. This is especially so since EV technology is moving at such a fast pace with advancements occurring even within 12 months. The battery packs of today, for instance, are better than two years ago and will likely be even more so in another two years.

Volkswagen today unveiled the latest ID.3, a battery electric vehicle (BEV) which it launched just two and half years ago. Normally, we would be reading about a ‘facelift’ but the carmaker avoids the term and says it is the ‘new ID.3’ – even going as far as to call it the second generation. It’s not unusual though to see ‘new’ since in one respect, it is new compared to the 2022 model.

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As speculated in our earlier report, Tesla – the leading BEV company in the world – is coming to Malaysia officially. A statement from the Ministry of Trade & Industry (MITI) today has confirmed that approval has been given for the carmaker, owned by Elon Musk who is one of the richest men in the world, to import Tesla vehicles.

Tesla’s application was considered under MITI’s program to attract Battery Electric Vehicle Global Leaders to invest in Malaysia and develop the EV industry and ecosystem. It is the first company to be given approval under this program and has been allocated APs (Approved Permits) for the importation of its vehicles although the number has not been mentioned, nor if there is a local partner involved. As mentioned earlier, Tesla has a subsidiary company registered in Malaysia which it has 100% ownership of.

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Following the launch of the battery-electric Mercedes-Benz EQS in Malaysia last year, Mercedes-Benz Malaysia today rolled out an EQS 500 4MATIC as its first locally assembled battery electric model at the assembly facility in Pekan, Pahang.

Mercedes-Benz Malaysia has been assembling its vehicles there since 2004 and the EQS marks a significant milestone. It is not just for Mercedes-Benz but also the Malaysian auto industry since it is among the first fully electric models to be assembled locally.

The program to assemble has been quite fast and would have been encouraged by the Malaysian government’s decision to provide duty-free incentives for BEVs from 2022, with those assembled locally enjoying the incentives for an extra 2 years (till the end of 2025). Without the imposition of import taxes and sales tax, the price of the EQS 500 4MATIC is RM648,888 (excluding insurance), RM50,000 less than the CBU EQS 450+ AMG Line.

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Audi is the latest brand in Malaysia to electrify, with 2 fully electric models (in multiple variants) to go on sale from mid-2023. The range will consist of the Q8 e-tron in SUV and Sportback versions, and e-tron GT quattro/RS e-tron GT. Malaysia will be among the first markets in the region to introduce the Q8 e-tron.

As the shipments have not arrived yet, PHSAM (PHS Automotive Malaysia), the Audi distributor, can only offer estimated prices for the models. Pricing for the Q8 e-tron is estimated to range from RM369,000 – RM476,000, while the e-tron GT quattro will have a price range estimated to be RM550,000 – RM643,000 for the two versions to be offered. The RS e-tron GT is estimated to have a price range from RM749,000 – RM769,000.

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Although Tesla does not have a global presence like Toyota (the world’s top-selling carmaker in 2022), it is still a world leader in as far as battery-electric vehicles (BEVs) are concerned. While BYD Auto’s total sales of almost 1.9 million electrified vehicles in 2022 were higher than Tesla’s 1.3 million+ units, around 50% of the Chinese carmaker’s numbers were hybrids whereas Tesla sells only BEVs.

Nevertheless, Tesla has been steadily expanding its global footprint since first marketing BEVs four years ago. Apart from North America, it has covered much of Europe and has been looking at the Asia-Pacific region in the past couple of years. It began official sales in Singapore in mid-2021 and started up in Thailand this year.

Meanwhile, Malaysian EV enthusiasts have been eagerly awaiting the arrival of the brand officially. While limited numbers have been sold by private importers, the absence of an official presence has meant that aftersales support – a vital part of ownership – is not readily available. This can be a risk to owners, especially for a high-tech product like a BEV. When there is official presence, such as an authorized distributor if not a subsidiary of the manufacturer itself (eg BMW Malaysia and Mercedes-Benz Malaysia), there is not only assured service and spare parts support but also direct access to the technical people to get assistance.

Now it seems that Tesla could soon be starting to official sell its cars in Malaysia. Although it has had a subsidiary in Penang handling back office operations (finance, accounting etc) since 2017, it has not done any retail sales. The buzz on social media, especially in EV-related groups, is that there has been a move to change the name of the Penang unit, originally known as Tesla Services Sdn Bhd, to just Tesla Sdn Bhd. A screenshot shared on many social media groups shows that the SSM (Malaysian Registrar of Companies) had confirmed the name-change last October.

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