Source: Monthly reports of the Malaysian Automotive Association
The Total Industry Volume (TIV) for the month continued to rise for a third consecutive month, September being the first full month of business after the long forced suspension of activities. The TIV increased by 153% compared to August sales, translating to a volume difference of 26,775 units.
Of the 44,275 units, 38,315 were passenger vehicles (excluding pick-up trucks) while 5,960 units were commercial vehicles (including pick-up trucks). Pick-up trucks account for between 65% to 70% of commercial vehicle sales.
Compared to the same month in 2020, however, the TIV in 2021 was 23% lower. The gap for cumulative sales over 9 months was smaller at 7%; in the same period last year, 344,019 vehicles were sold whereas in 2021, the total number reached only 318,874 units.
According to the Malaysian Automotive Association, some companies are affected by the global chip shortage and are having delays in deliveries to customers. This situation affects CBU models as well as those that are locally assembled although not equally at different plants.
Production nevertheless has been climbing in the same manner as sales numbers, with most plants able to operate at full capacity. The government allows those factories with a minimum of 80% of their workforce fully vaccinated to carry out operations with full attendance.
The total production volume for September was 229% greater than the output in August, with 45,972 vehicles assembled. Of this number, 42,556 units were passenger vehicles.
Cumulative production from January to September reached 303,996 units, 4% lower than the 315,863 units that were assembled over the same period in 2020.
The MAA expects October sales to show continued increase as output of vehicles is pushed as much as possible, while the companies are doing their best to meet 2021 targets if possible. There are still a few new models that will be launched before the end of the year so customer interest will be high. And of course, towards the end of the year, there will also be promotions that will entice many to buy a new vehicle.
Shinya Ikeda has been appointed to the position of Chief Executive Officer of Mitsubishi Motors Malaysia (MMM), taking over from Tomoyuki Shinnishi who returns to a new role at the Mitsubishi Corporation headquarters in Japan. Prior to this new role, Mr. Ikeda was General Manager in Mitsubishi Corporation’s automotive business field since 2019. He is, however, no stranger to Malaysia as he served as its Chief Financial Officer and General Manager of MMM between 2009 and 2012.
Mr. Ikeda started his career in Japan in 1995 and joined Mitsubishi Corporation in 2008. His first assignment was to manage the automotive business investment in Malaysia. He has since held various leadership roles and has been involved in automotive and finance businesses within Mitsubishi Corporation and other markets such as Japan, Indonesia, Russia, and Germany.
With Mitsubishi Motors having a focus on the ASEAN region, Mr. Ikeda will be guiding MMM in growing the brand’s presence further in Malaysia.
“I am excited to join Mitsubishi Motors Malaysia’s team. The company has grown from strength to strength and has now become one of the nation’s leading automotive brands. As announced in the Mitsubishi Motors Corporation Mid-Term Business Plan last year, MMC will continue to focus on the ASEAN market and particularly Malaysia as the country is one of the most important markets in the world to expand the Mitsubishi brand presence. I look forward to working with the team to contribute with the knowledge and experience that I’ve had. I am also happy to be back in Malaysia as the country is home to various diversified food and culture and also people with enormous talent and potential,” said Mr. Ikeda.
Mr. Shinnishi, who joined MMM in 2016, has taken the company further during his 5-year tenure. In that time, the company introduced new models such as the new Triton and XPANDER 7-seater MPV, the latter being assembled locally in Pahang. Though its range is not large, MMM has the best-selling non-national MPV and the Mitsubishi Motors is also among the country’s top three non-national brands.
During Mr. Shinnishi’s tenure leading Mitsubishi Motors Malaysia, the company launched the new Triton (that’s him in the picture) which has been among the more popular pick-ups in the market. It also began local assembly of the XPANDER MPV (below) which is presently the bestselling non-national MPV.
The PETRONAS name will be absent from the racing cars of the successful Mercedes-AMG Formula 1 team after this year’s championship ends. It has been confirmed that the team, which has won 7 world championships, will no longer have Malaysia’s national oil corporation as its title sponsor. This comes after over 10 years of association between the team and the oil company, although its involvement in F1 goes back as far as 1995. The latest development follows Petronas’ ending of their MotoGP title sponsorship at the end of this year and no longer being associated with the Yamaha SRT team.
Over the years, Petronas has used its association with Formula 1 for many marketing activities, leveraging on the development efforts in fuels and technology. More than 50 engine oils, transmission fluids and hydraulic fluids have been developed for the racing cars to use in extreme conditions. The technologies and knowledge from such developments have eventually been used to develop commercial products for sale to the public.
It would certainly have been very expensive and while Petronas products are available in around 65 countries, many may not know it is a Malaysian company (although ‘MALAYSIA’ has occasionally been put on the cars. But the same can also be said of other major sponsors like Repsol, Santander and certainly, not many of the 500 million people who watch F1 worldwide will be aware that the ORLEN which sponsors the Alfa Romeo F1 team is a Polish petroleum company. Brands like Marlboro, Rolex and even Dell would have more global presence and recognition. But Petronas believes the money has been well spent: in 2016, it estimated the value of brand exposure in F1 from 1995 was worth more than US$900 million.
Saudi Aramco to take over as title sponsor?
In place of Petronas, Mercedes-AMG is expected to have another oil company – Saudi Aramco. As the main company operating in Saudi Arabia, it has the world’s largest network of oilfields and its revenues are chart-topping. Saudi Aramco (which stands for Arabian American Company) is state-owned and was established in 1933. Described as an integrated oil and gas company, it is mainly in upstream activities and has no visible internationalpresence in consumer products, unlike most other oil companies. It does, however, have a network of fuel and service stations (in partnership with Total of France) in Saudi Arabia.
Saudi Aramco, which has been operating for 88 years, is active mainly in upstream oil and gas activities. It also has a network of fuel and service stations under the Sahel brand which is in partnership with Total of France.
The tie-up with Mercedes-AMG is the second major involvement in F1. Last year, Saudi Aramco announced a long-term global sponsorship with the sport, its first global sponsorship of a major sporting event.
“We are excited to partner with Formula 1, a strong global sports brand with millions of fans around the world. As the world’s largest energy supplier and an innovation leader, we have the ambition to find game-changing solutions for better-performing engines and cleaner energy. Partnerships like these are important to help us to deliver on our ambitions,” said Saudi Aramco’s CEO & President, Amin H. Nasser.
Involvement in F1 since 1980s
Saudi Aramco’s involvement in F1 is not Saudi Arabia’s first association with the sport. Older readers will remember that, in the 1980s, Saudia Airlines (the country’s national airline) sponsored the Williams team. Though the Saudia name was the most prominent, Frank Williams also managed to get eight other supporters from Saudi Arabia’s growing business community.
Saudia Airlines was one of the Saudi Arabian companies that were sponsors for the Williams F1 team in the 1980s.
The group included TAG (Techniques d’avant Garde), an advanced technology company which was founded by a Saudi businessman. TAG (which bought over the Heuer watchmakers) first sponsored Williams and the McLaren. Today, it also has a major share in the McLaren Group. More recently, TAG Heuer has been a major partner in the all-electric Formula E series as well, along with Saudia Airlines.
Major motorsports events in Saudi Arabia
The country’s ‘Vision 2030’ is also bringing Saudi Arabia into the 21st century and its society is changing, eg women have been allowed to drive cars since 2018. As a result, it has attracted three major motorsports events to be run in the country to boost tourism. The Dakar Rally and Extreme E Desert X-Prix, which were run in the deserts for the first time in 2020 and 2021, respectively, and later this year, the first ever F1 race in the streets of Jeddah. All are significant events which will be widely publicized, and organisers have made deals to run them over a number of years.
The first round of the inaugural Extreme E electric off-road series was run in Saudi Arabia in April this year.
Today’s videogames have superior realism that they can even be used for global racing championships which thousands participate in. Even the FIA, the world motorsport governing body, has recognised simulation videogames, terming them as ‘digital motorsports’.
One of the companies that has been constantly pushing the edge of the simulation envelope further has been Polyphony Digital Inc., developer of the Gran Turismo series for Playstation (PS) consoles since 1997. The series has been constantly improved in all respects, especially realism, and will start its seventh version in March 2022 for PS4 and PS5 consoles.
Official technical partner
For Gran Turismo 7 (GT7), Polyphony Digital has chosen Brembo, a well known and leading designer and manufacturer of performance brake systems as an official technical partner. Brembo supplies brake systems to competition cars (including Formula 1) and motorcycles, as well as roadgoing cars.
In GT7, Brembo will appear in the Tuning Shop of the videogame where its UPGRADE products will be available to players. Like a real-world workshop, this virtual shop is where they can upgrade the performance of their cars.
Upgrading with different brake systems
In this environment, gamers will be able to replace their original brake discs with those from the Sport range and, as they progress through the game, to upgrade their car with different Brembo brake systems. The choice will range up to the highest performing and most distinctive products for road cars, including Carbon Ceramic brake discs and GT|BM calipers, available in 8 different colours.
Now part of Gran Turismo
“We are particularly proud to deliver the uniqueness of Brembo brake systems to the Gran Turismo series. This iconic driving simulation video game franchise has built a strong community of millions of gamers around the world since its creation almost 25 years ago,” said Daniele Schillaci, Brembo’s Chief Executive Officer. “For Brembo, this partnership represents an extraordinary opportunity to reach out to the younger generations, which is in line with our vision, ‘Turning Energy into Inspiration’. From the asphalt of the track, the performance and design of our systems have now become part of the virtual world of Gran Turismo 7. Our ambition is to further enhance the gaming experience, just as the driving experience does in reality.”
Kazunori Yamauchi, President of Polyphony Digital Inc. and Producer of the Gran Turismo series, has personal admiration for the brand. “Even before we released our first Gran Turismo, Brembo was a hero brand to me,“ he said. “As a street racer back then, I had often struggled with the brakes fading. This was because most production cars at the time, excluding a very select few, were not equipped with brakes that matched the power and weight of the car. I always found Brembo to be reliable on the circuit and, as a result, always had a connection with the brand. So it’s a pleasure to announce this partnership between Gran Turismo and Brembo, a true high performance brand.”
Brembo’s profile and values will be visible in the Gran Turismo 7 game’s Brand Central. The 60 years of the company’s history will be presented in the Brand Central Museum. In addition, Brembo will be visible with its branding on the tracks featured in the game as banners or billboards in the background.
The Formula 1 organisation has released its calendar for next year and the 2022 Formula World Championship will have 23 rounds, one more than 2021. Perhaps to be on the safe side, the Australian GP is no longer the season-opener, as it was for many years. In 2020, the opening round in Melbourne was cancelled at the last moment as the pandemic worsened and there was hope that it could be held later in the year. But that didn’t happen and in 2021, the same thing happened and Bahrain had to quickly take over for the first round.
This year, the Middle Eastern venue is again the season-opener on March 20, along with Jeddah, Saudi Arabia hosting Round 2. It will be the second time for the Jeddah Street Circuit but at this time, little is known about it since the first race on it will only be towards the end of this year’s championship. It is likely to be a night race as it would be cooler, especially in March.
The Bahrain International Circuit at Sakhir where the 2022 championship will start.
Round 3 will be held in Australia, a rather long journey down under and then for Round 4, the teams will have to fly all the way to Florida in the USA where there will be the first ever F1 race in Miami. It will be one of two races to be held in America, the other being Round 20 in October in Texas. The Miami circuit will be new to everyone but the Circuit of The Americas in Austin, Texas, is a familiar one already.
After Miami in the early part of May, the teams will then return to Europe where there will be 3 rounds before crossing the Atlantic again for the Canadian Grand Prix in Montreal. Then it’s back to Europe for 8 rounds until September 25.
The Spa de Francorchamps Circuit for the Belgian Grand Prix is the longest one on the calendar, with each lap being 7 kms long.
The only two rounds in the Far East are in Singapore and Japan during October. Both venues had cancelled in 2020 and 2021 due to the severity of their pandemic conditions that made it not only risky for the participants but would also have been troublesome logistically with long quarantine periods.
The Singapore GP – which was the first-ever F1 night race – is scheduled for October 2 next year. Hopefully, it will run and not have to be cancelled for the third time due to the pandemic.
After Japan (which hopefully will not be hit by a typhoon at the time), the next venue is in the western hemisphere 14 days later for the second race in America. While they are in the Americas, they will head south to Mexico City for Round 21 and then Sao Paolo’s well known Interlagos Circuit for Round 22. By then, it will be mid-November and the final round of 2022 will be at the Yas Marina Circuit in Abu Dhabi on November 20.
Hopefully, unlike the 2020 and 2021 seasons, the schedule as published can be retained and rounds do not have to be cancelled or postponed because certain countries introduce lockdowns again or tougher quarantine requirements. The COVID-19 pandemic seems to be diminishing and health authorities in many countries are hopeful that we will be able to have ‘normalcy’ in 2022, so motorsports and other activities can be held safely.
While electrification is the big move by the auto industry to achieve carbon neutrality as soon as possible, there are also parallel efforts by the FIA (the world motorsport governing body) to reduce the environmental impact of motorsport and motorized mobility. The efforts of the organization apply a science-based target reduction plan aligned with the Paris Agreement 1.5°C objective.
One of the strategies is the introduction of 100% sustainable fuel for Formula 1 in 2025. This fuel will have zero net carbon dioxide emissions. The use of this fuel in motorsports could be a savior for internal combustion engines (ICE) if the technology can be widely commercialized for roadgoing vehicles. If this can happen, then the days of the ICE could be extended a bit more while meeting demands to stop carbon dioxide emissions.
While the use of sustainable fuels in F1 has already been committed, there are also other parties in the motorsport community that are supporting the effort. Prodrive, the British motorsport specialist that developed championship-winner cars for the Subaru World Rally Team, will support one of the first major teams in the world to compete with a new generation of advanced sustainable fuels in an FIA championship. The championship is the FIA World Cup for Cross Country Rallies that will run later this year.
The Prodrive-run Bahrain Raid Xtreme (BRX) team will then use this fuel at the Dakar rally in January to demonstrate that such sustainable fuels can be used as a direct replacement for fossil fuels in standard production vehicles.
Prodrive has developed the sustainable fuel over the past 8 months in conjunction with UK-based, Coryton Advanced Fuels. Called Prodrive ECOpower, it has been specifically developed to demonstrate the environmental benefits of the latest sustainable fuel technology. The main components are generation 2 biofuel, manufactured from agricultural waste, and efuels created by capturing carbon from the atmosphere. As a result, the fuel reduces greenhouse gas emissions by 80% compared to equivalent petrol.
“I am a great advocate of motorsport taking the lead in developing, proving and promoting new technologies that can help address climate change. Covering thousands of miles across the toughest terrain, the Dakar and the FIA World Cup for Cross-Country Rallies are the perfect environment to showcase the benefits of the next generation of sustainable fuels and demonstrate that they can be used in road vehicles to reduce the use of fossil fuels, while still offering the same performance and range,” said Prodrive Chairman, David Richards.
The fuel has been developed at Prodrive’s powertrain facility in England and has been run in the BRX team’s Prodrive Hunter T1+ car in the same unmodified engines which previously ran on petrol. While Prodrive ECOpower has been developed for motorsport use, this sustainable fuel can be used as a direct replacement for unleaded petrol in almost any vehicle and the company is planning to run a near identical fuel in a number of its road vehicles to further prove out the technology.
The Hunter T1+ has been specifically designed to compete at the tough Dakar Rally in the deserts of Saudi Arabia and in cross-country rallies across the world. The 4-wheel drive car can travel over almost any type of terrain, from sand dunes to rocky mountain tracks, and at high speeds. Over the 2 weeks of the Dakar, it will cover more than 7,500 kms.
The BRX team has carried out extensive testing in the UK and is now heading to the Middle East for more extensive endurance work in the same conditions it will experience at the rally. The team will then compete at the Abu Dhabi Desert Challenge and Hail Rally before heading to the Dakar which starts on the first day of 2022.
