The new Malaysian government took the reins of running the country in 2018. Since then, there's been mix feelings amongst the Malaysian people about the policies and regulations. In the automotive industry, car prices and plenty of new models set for unveilings were delayed in 2019 due to a myriad of reasons. Today, the Malaysian government through the Ministry of International Trade and Industry announced the 2020 National Automotive Policy (NAP). This announcement acts like an update by the government on ongoing development and the automotive roadmap from 2020 onwards.
The 2020 NAP highlights several clear directions and guides for the industry. It expedites forward planning, especially where investments in Malaysia by big auto names are concerned. As part of the 2020 NAP, a new program called the Next Generation Vehicle (NxGV) program is revealed. NxGV is geared towards another area to direct future product development for the Malaysian market such as plug-in hybrids, EVs and more.
More Incentives and time needed
Car companies continue to plead to the government to continue to giving incentives for a sufficient length of time, which allows the companies to justify on investment and R.O.I (returns on investment).
The other concern on the Energy Efficient Vehicle (EEV) status. Companies pleaded for more time to implement EV car specification and review before production and mass distribution. This is in line with the government's initiative to get local auto manufacturers to move to the IR4.0 phase. One of the core objectives here is to make cars with reduced carbon emissions and improved fuel economy by 2025 . Hence, the next phase sees manufacturers increase production of more locally-assembled hybrid models. However, for this to become a consistent plan, incentive support from the government is crucial at this preliminary stage.
How will the 2020 NAP and Next Generation Vehicles program fair? Stay tuned for future updates. For sure, this latest initiative brings about a new era for the automotive industry in Malaysia.