Inokom Corporation Sdn Bhd, a subsidiary of Malaysian-based Sime Darby Motors and Chery Malaysia have officially joined forces for local assembly at the latter’s 200-acre manufacturing plant in Kulim, Kedah.
“We are very excited to be partnering with Inokom. With nearly three decades of experience in assembling vehicles of many world-renowned brands, Inokom is an ideal partner for Chery in our mission to take root in Malaysia and provide Malaysian consumers with high-technology and high-quality vehicles that are ahead of the curve in terms of design,” said Chery Malaysia Country Director Mr Leo Chen.
Bermaz Motor has launched the Mazda CX-30, its third locally assembled model after the CX-5 and CX-8. The CX-30 is the final model that was in the plan announced four years ago relating to new investments and local assembly by the company as it moved forward. It was the next step for Mazda Malaysia, the joint venture between Mazda and Bermaz formed in 2012 to oversee local production, distribution and exports to other ASEAN countries.
In 2019, Mazda upgraded the ‘plant within a plant’ at Inokom in Kedah with an investment of RM200 million, which raised production capacity from 30,000 to 50,000 units. Mazda production at Inokom shares some of the facilities but also has a dedicated area (including its own paintshop) for assembly of its own products, hence the ‘plant within a plant’ description.
The roll-out of the CX-30 was actually scheduled a bit earlier but the global COVID-19 pandemic impacted all industries and time-frames had to be revised due to extended periods of lockdown. However, the CBU (completely built-up) version was already being sold since 2020.
Kia vehicles have been sold in Malaysia since the 1990s but the Korean carmaker has kept its involvement in local activities at arms-length. Although its models were assembled locally, the activities were largely left to their local distributor (the NAZA Group at that time). Kia did have a regional office here and too and interest in what was going on but didn’t want to make investments itself.
That changed last year when the local partner changed and Bermaz Auto took over the brand from Naza (along with Peugeot as well). Perhaps the Korean carmaker decided that it was time to control its destiny and for that, it would have to become directly involved. It formed a joint-venture company with Bermaz Auto called Kia Malaysia which will manage the brand’s activities in the country.
The Inokom manufacturing complex in Kulim, Kedah, where Kia vehicles are being assembled.
More significantly, Kia Malaysia’s operations include local assembly, the first time the carmaker is making a direct investment for assembly operations. It is vital to assemble locally to be able to grow volumes more quickly and be competitive. Kia has set a target of 100,000 units in total from 2022 to 2026, for the Malaysian market as well as export. The export plans are ambitious and will account for more than 50% of annual production each year. By 2026, the company expects to export up to 19,000 units from the 30,000 units targeted for that year.
Four models to be assembled locally
When Kia Malaysia announced its formation, it also provided an insight into its 5-year plan with 4 models to be produced, including battery-electric vehicles. The models, in launch sequence, will be the Carnival, Sportage, Sorento and Niro, the latter to be offered as a BEV.
The first product has started rolling out on schedule from the Inokom plant in Kedah and it’s the Carnival MPV. The model was already on sale at the beginning of the year as a CBU (completely built-up) import from Korea and from our driving impressions, it was certainly a very different MPV from the original Carnival which was also cloned into the Naza Ria. It’s a premium product, which is in line with Kia’s aim of raising the image of its products.
The locally-assembled Carnival is a 7/8-seater (above) whereas the CBU imported model is an 11-seater (below).
8-seater instead of 11-seater
While having the same appearance, the locally-assembled Carnival is not an 11-seater but a 7-seater or 8-seater. There was no shortage of buyers for the CBU 11-seater but having less seats might also work better to sell in greater numbers.
The powertrain is the same Smartstream 2.2-litre turbodiesel CRDI engine with an 8-speed automatic transmission. Though it is a large vehicle, the 199 bhp/440 Nm provides respectable performance, as we experienced on our drive at the beginning of this year.
Bermaz Auto (its retail arm for Kia vehicles is Dinamikjaya Motors) is known for being generous with equipment and features and the locally-assembled Carnival will come with a list that maintains the premium positioning for the MPV. There will be ambient lighting, heated/ventilated seats, Premium Relaxion Seats (second row), 12-speaker Bose audio system, powered sliding doors, ‘smart’ powered tailgate and a complete suite of Advanced Driver Assistance Systems.
New beginning for brand
“The roll-out of the Kia Carnival in CKD [locally assembled] form is an important milestone in the marque’s renaissance in Malaysia. We are delighted to welcome the first Kia model produced here at Inokom for the Malaysian and ASEAN markets. The Kia Carnival marks a new beginning for the Kia brand and showcases all the hallmarks of our products, superior design, smart technology and an impressive driving experience,” said Ted Lee, Kia Asia Pacific President & CEO.
“The consumer’s response to the fully imported Kia Carnival 11-seater variant launched in January has been very encouraging and we are confident that the consumers will be equally enthusiastic about the CKD Kia Carnival. We believe these CKD variations will serve the differing needs and expectations of those in the market for a modern and luxurious multi-purpose vehicle,” added Dato’ Wong Kin Foo, Managing Director of Dinamikjaya Motors.
The prices have not been officially announced but it is known that there will be 3 versions with prices (excluding insurance) starting from RM231,299. PISTON.MY will be joining a media drive of the Carnival to Penang later this week and we’ll let you know what it’s like although we expect that we will be equally impressed as we were with the CBU model.
As reported in August last year, Porsche will assemble its vehicles in Malaysia, the first time that the sportscar maker is carrying out such activity outside Germany. It has not built a new factory in Malaysia but is using the existing Inokom Corporation complex for its facility.
The official launch of the facility, which took place today, is an event of great significance and is the result of close collaboration with Sime Darby, which represents Porsche with its Sime Darby Auto Performance unit. It also owns the Inokom factory, located on a 200-acre site in Kulim, Kedah which began operations in 1997. The factory first assembled Renault and Hyundai vehicles and under Sime Darby ownership, products from BMW, MINI, Hyundai and Mazda are also assembled at the complex today.
The Inokom factory in Kulim, Kedah, is the first site outside Europe to manufacture Porsches.
Porsche Zuffenhausen, Germany
Porsche Leipzig, Germany.
“We are very honoured by Porsche’s continued trust in Sime Darby, as we deliver a product consistent with Porsche’s highest standards for quality, performance and driving experience. The facility, which is 100% staffed by highly skilled Malaysians, not only supports the growth of our businesses across the automotive value chain in Malaysia; but also creates a pipeline of jobs to empower the local community,” said Sime Darby Berhad Group CEO, Dato’ Jeffri Salim Davidson.
“The new assembly site in Malaysia meets specific market needs and operates alongside Porsche’s established network of production sites in Europe. In particular, it meets comprehensive quality standards set forth by Porsche when assembling Porsche sportscars,” said Albrecht Reimold, Member of the Executive Board for Production and Logistics at Porsche. “Additionally, the facility was built alongside our production philosophy: smart, lean and green.”
With this in mind, Porsche has designed its local assembly facility to meet high sustainability standards: on the roof, solar panels provide all the power needed for operations, while rainwater harvesting technologies ensure wastewater is kept to a minimum.
The Sime Darby local assembly facility has a team of highly skilled and 100% Malaysian talent, all of whom have received comprehensive training from Porsche. The assembly is further supported by a network of local suppliers and service providers in the area, empowering the future of the local community with job opportunities, upskilling prospects, and potential for further expansion.
Porsche will start with the Cayenne, a popular SUV model which is now in its third generation. The units assembled at Inokom will be for sale only in Malaysia although it is likely that the carmaker will be looking at exports later on. After all, with AFTA (the ASEAN Free Trade Agreement) allowing duty-free exchange of vehicles within ASEAN countries, it will be advantageous as prices can be more attractive and competitive. However, to qualify for this benefit, at least 40% of the vehicle’s content must be sourced from within ASEAN so that may require a bit more time to reach.
One of the first locally-assembled Cayennes undergoing final checks.
While it may seem that local assembly is simply a matter of picking a model and putting it into a box in disassembled form for assembly in another country, the process is actually more extensive. It has to be engineered for local assembly, taking into account the level of automation at the facility and capabilities of the workforce. In as far as being suitable for local conditions, that would already be done as Porsche has been selling the Cayenne locally since it was first introduced in the early 2000s.
For Porsche too, this is something new and the company probably has to create some new departments to handle the processes for assembly in Malaysia. Preparation of the completely knocked down (CKD) packs with all the parts is a specialised activity and something Porsche has never had to do before. Of course, it will probably be able to draw on the knowledge and experience from other members in the Volkswagen Group which have been assembling in other countries for decades.
The locally assembled model comes with an elevated and enhanced standard equipment range specified exclusively for the Malaysian market, with a specially curated Porsche Exclusive Manufaktur option package and a special Porsche Design timepiece available for further personalisation.
Another initiative by Porsche in Malaysia is helping to establish a recharging network for electric vehicles. Porsche Asia Pacific and Shell have collaborated to set up high-performance charging (HPC) stations along the North-South Expressway. This is a first in Southeast Asia and Shell’s first cross-country EV infrastructure in the region, enabling EV owners to drive from Singapore up the west coast of Peninsular Malaysia to Penang and on to Thailand. Additionally, HPCs are already in place at authorized Porsche dealerships in the country.
For more information on Porsche products and services in Malaysia, visit www.porsche.com.my.
After a period of obscurity, Kia is ready to move forward with great determination and has formulated a plan to grow its volume in the ASEAN region. Having established a new business operation in April this year, the Korean carmaker has a partner – Bermaz Auto – which took over the brand from Naza (along with Peugeot as well). Bermaz Auto and Kia have formed a joint-venture company called Kia Malaysia which will manage the brand’s activities in the country. Distribution and retail operations will be handled by Dinamikjaya Sdn Bhd, a subsidiary of Bermaz Auto.
Kia Malaysia’s operations will include local assembly, the first time the carmaker is making a direct investment for assembly operations. It considers this to be a key factor for growth as it will enable Kia vehicles to be sold around the ASEAN region at competitive prices. This is because they can be assembled in Malaysia and exported to other markets without import duties imposed by those countries, a privilege accorded by the ASEAN Free Trade Area (AFTA) agreement.
Previously, there were some Kia models assembled locally but the volume was small and therefore not efficient. Now, Kia has set a target of 100,000 units in total from 2022 to 2026. The vehicles will be for the Malaysian market as well as export. The export plans are ambitious and will account for more than 50% of annual production each year. By 2026, the company expects to export up to 19,000 units from the 30,000 units targeted for that year.
The vehicles – comprising new generations of the Carnival, Sorento, Sportage and Niro – will be assembled at the Inokom plant in Kedah. This plant, which began operations in the 1990s, assembles for brands such as Mazda, BMW and MINI. Incidentally, among the plant’s shareholder’s is Hyundai Motor Company, which is affiliated with Kia in the Hyundai Motor Group. Hyundai’s share is 15% and it has been a shareholder since the plant started in 1997.
From what Kia Malaysia has revealed of the coming products, all four models will be produced with combustion engines as well as electrified powertrains. The Carnival and Sportage will be hybrid electric while the Sorento and Niro will also have plug-in hybrid (PHEV) powertrains. A fully-electric version of the Niro will also be produced, and this would enjoy attractive incentives offered by the government for battery-electric vehicles.
ICE: Internal Combustion Engine | HEV: Hybrid Electric Vehicle | PHEV: Plug-In Hybrid Electric Vehicle | BEV: Battery Electric Vehicle
The Inokom factory in Kedah which will assemble Kia vehicles. It began operations in 1997 assembling Hyundai and Renault vehicles.
Omitting passenger cars may not be a disadvantage as Kia’s past models have enjoyed limited success. Their SUVs have met with good response and the new Carnival is also a big leap from the previous generation. Now the task for Dinamikjaya will be to assure customers that it will offer the best aftersales support to those who buy a Kia. The company will examine all past promises to customers and see how to best move forward with existing owners.
Teaming up with Bermaz Auto is advantageous for Kia as the team in this company have long experience in all aspects of the auto industry. They are led by Dato’ Seri Ben Yeoh, whose career spans 5 decades, during which time he has been involved in brands like Mercedes-Benz, Toyota, Daihatsu, Proton, Mazda, Skoda and Hyundai. Senior members of his team were even involved in setting up and running the Inokom factory before it was acquired by Sime Darby Motors.
As reported earlier, Porsche will be setting up assembly operations in Malaysia, the first time the sportscar maker has produced its cars outside Germany. The company has confirmed that small-scale local assembly operation in Malaysia will join the company’s two other production sites – the original one at Zuffenhausen and the 19-year old one in Leipzig.
It is believed that the plan to assemble in Malaysia has been under consideration for at least 5 years though it was only early this year that it became known outside the company. There is interest in the Southeast Asian region which is unified under the ASEAN Free Trade Area (AFTA) and member nations have agreed to allow intra-ASEAN exchange of goods and service without import duties. The agreement was signed in the early 1990s and was implemented in the early 2000s.
Carmakers have welcomed the AFTA agreement which allows them to set up a large factory with big volumes in one country to make vehicles for the region. This allows good economies of scale compared to the situation before where each country had low-volume assembly plants to cater only for the domestic market. The regional approach lowers production costs which benefits consumers who get lower prices or better features with the money saved.
Porsche would have likewise seen a similar opportunity, especially since Volkswagen began assembly in Malaysia. However, the initial plan is to assemble in Malaysia from 2022 for the local market only but it’s almost certain that there will be exports later on. This will enable pricing of some models to be more attractive and competitive as they will not be subject to the high import duties that the countries impose for vehicles originating from outside ASEAN.
Sime Darby to be local partner
Not surprisingly, Porsche will have Sime Darby Berhad as its partner in local assembly. Sime Darby Auto Performance, a subsidiary of Sime Darby, also handles the Porsche brand in Malaysia and another subsidiary, Inokom, has an assembly plant in Kedah. Some of the brands assembled at the plant, which began operations in the 1990s, are BMW, MINI, Mazda and Hyundai. BMW engine assembly is also carried out by a subsidiary adjacent to the plant.
The Inokom factory in Kedah.
Mazda is among the brands that has assembly operations at the Inokom plant.
BMW also has engine assembly operations at a facility adjacent to the plant where some of its models are assembled.
First Porsche production facility outside Germany
The local assembly operation will not only be something special for Malaysia but also for Porsche as it has never before had to have a CKD (completely knocked-down) process which is required for assembly overseas. It is not just a matter of picking a model and putting it into a box in disassembled form for assembly in another country. The model has also to be engineered for local assembly, taking into account the level of automation at the facility and capabilities of the workforce.
It is possible that the ‘SKD’ (semi knocked down) approach will be taken initially although this approach was stopped by the government in mid-2019. With SKD, bodyshells can be imported already welded together and in some cases, even painted. One thing that will prevent Porsche from exporting from Malaysia initially will be the requirement of 40% ASEAN content in each vehicle in order to qualify for the duty-free privilege. This usually takes while as suppliers have to be found or if they are new, then they will need time to also establish their operations.
Porsche will have Sime Darby as its partner in the local assembly operations and the two companies are already familiar with each other as Sime Darby Auto Performance, a subsidiary, handles the German sportscar brand in Malaysia.
Willing to learn and adapt
“We’re fortunate that, due to careful planning, our existing factories are more than up to the task of meeting current and future global demand for our cars,” said Albrecht Reimold, Member of the Executive Board for Production and Logistics at Porsche. “However, the new assembly site in Malaysia meets specific market needs and, although a standalone project and modest in size and capacity, it signals our willingness to learn and adapt to specific local market conditions.”
“Malaysia and the whole ASEAN is a region of great potential, and we look forward to the first locally assembled models reaching our Malaysian customers next year,” added Detlev von Platen, Member of the Executive Board for Sales and Marketing at Porsche. “As Porsche is moving into a new era of mobility, Malaysia and the ASEAN region are gaining an increasing importance. This step now is part of a long-standing initiative to keep pace with rapidly evolving customer and market demands.”
Porsche to assemble in Malaysia? That’s the current topic among enthusiasts following a report in The Edge Weekly. The business website mentions that its source has said the investment has been approved by Malaysian authorities and that the assembly will be done at the Inokom factory in Kedah.
It would be quite an unusual development for the German sportscar maker as it has never built its cars outside Germany. It has two factories – the original one at Zuffenhausen and the 19-year old one in Leipzig. In its 2019 financial year, total production from the two factories was almost 275,000 vehicles.
Porsche has come a long way from the time it began making sportscars in the 1950s. Today, it has two factories supplying to the whole world – the original one from the 1950s in Zuffenhausen (below) and a second one in Leipzig (bottom), both in Germany.
Porsche builds its vehicles for the whole world at just two facrories – the original one from rhe 1950s in Zuffenhausen and a second one in Leipzig (below), both in Germany.
Porsche being a strong brand, demand for its products has always been good although the coronavirus pandemic which impacted the auto industry did result in a 12% decline in deliveries last year. In the first half of 2020, Porsche sold 55,550 vehicles to customers in the Asia-Pacific, Africa and the Middle East regions, with China’s intake of 39,603 units making it the biggest single market worldwide for the carmaker.
So is it time for Porsche to establish a production hub in the Asia-Pacific region? Bear in mind that the 100,000+ volume is made up of 5 model lines with the specialized all-electric Taycan being the sixth. Obviously, assembling outside Germany would not involve all the models so it would be one or two, with the Cayenne being the most popular so it could be a good candidate.
Manufacturers invest in overseas production facilities in places where they can get good incentives by government to do so. They obviously require a good infrastructure as well. At one time, the potential domestic market volume was important since they would assemble in another country and primarily want to sell there, with exports being secondary. However, with the formation of the ASEAN Free Trade Area (AFTA) as a single trading bloc and duty-free exchange of goods, it is no longer just one country to look at but the potential of regional volume, which can be quite big.
Local assembly of vehicles in Malaysia began in 1967.
Up till the 1980s, Malaysia was an excellent place for any carmaker to have a production base. It had a good infrastructure, a well educated workforce which was also familiar with the English language, a stable government and a growing economy. It had begun local assembly activities in 1967 so a broad range of locally-made components was available. Manufacturers who chose to assemble locally had their vehicles taxed at lower rates so they could be priced attractively.
However, things changed after the mid-1980s when Malaysia decided to have its own National Car, with the government being an investor in the project. Naturally, it had protection so it could compete against established brands and with the protection, the playing field was no longer level like before. The market came to be dominated by one brand while others had to fight in a far smaller slice of the market.
In the interests of ‘free trade’ and also as a member of the World Trade Organisation, the government never stopped anyone else from selling in Malaysia. They were welcome to import their vehicles in CBU (completely built-up) form and pay much higher taxes, or assemble them locally and have lower taxes but still more than what Proton had to pay.
While having a national car, the government nevertheless wanted to also make Malaysia a production hub in ASEAN. However, it basically wanted carmakers to build their factories in Malaysia but export almost all the production; the domestic market was to be left alone. While this may be fine in theory, as mentioned earlier, manufacturers prefer to look at the domestic market first. If they are to export to another country, why can’t they do it from their own factories in Japan or Europe? The shipping costs would be the same anyway and they would probably have lower production costs as well as the vehicles would be made in high-volume factories with better economies of scale.
The AFTA agreement helped but Malaysia has so far not benefitted much. When the manufacturers first learnt of the single market being formed, and the ability to export around the region without import tax, they were attracted. The market size estimated when AFTA was signed in the early 1990s was about 550 million consumers, with many steadily moving upward economically, and a potential GDP of US$750 billion.
So they looked at making investments and besides incentives, they also looked at domestic market potential. Malaysia was seen as ‘protected’ so it was not seriously considered, not that the government really cared since Proton was selling everything it could make anyway. So Thailand, where the playing field was seen as level, got big chunks of investment as Ford and GM built brand new factories to make their products for the region. Indonesia too saw investments with the aim of expanding existing factories to produce more and export.
Ford did consider Malaysia and had a plan to make the Escape SUV in Malaysia for the region. The plans were confirmed but then Malaysia decided that it did not want to open up as planned under the AFTA agreement because it said that its auto industry had been battered by the Asian financial crisis. It needed some extra years to recover, so the market had to stay closed. A frustrated Ford, realizing that it would not be practical to use Malaysia, tore up its plans and put its money into the Philippines where it had a factory.
Only Volvo seems to have chosen Malaysia as a hub of sorts but that is more a historical thing. Its factory here was the first to open when Malaysia began calling for local assembly and although it had production in Thailand, that was closed down and everything concentrated in this country for the region from 2012.
For the other carmakers, Malaysia was still and attractive market because it was the largest passenger car market in ASEAN. Thailand was a pick-up truck market and in Indonesia, the biggest demand was for MPVs. So in spite of the difficult environment, many carmakers continued to operate in Malaysia, make the necessary investments periodically to upgrade their plants and kept refreshing their model lines.
Porsche has been officially in Malaysia for a long time, with Sime Darby Auto Performance representing the brand since 2010.
But the much desired objective of the government – to be a regional production hub – remained elusive. There have been a few National Auto Policies (NAP), each one stating that aim, and offering various types of incentives without much detail. The general way that the Malaysian government’s Ministry of International Trade & Industry has liked to operate is with ‘customised’ incentives, perhaps believing that the approach would be more appreciated by investors.
However, many in the industry have expressed a dislike for the approach, preferring the details to be open for all to know and work with. Transparency is important for these businessmen, and as one veteran industry executive said, “How can I know that my competitor might have received a better incentive but actually invested less?”. So the has remained an indifference and even with the latest NAP announced a year ago, the lack of transparency and detail continued. Many people were disappointed that only an outline was provided and could not even begin to start working out plans to propose to their head office. Anyway, since then, the government has changed so it could be that the NAP will see a revised form, depending on the MITI minister.
For many years. Daihatsu has been taking the Myvi made in Malaysia and selling it as a Daihatsu Sirion in Indonesia. Mazda has also been exporting the CX-5 assembled in Malaysia (below) to Thailand.
Over the past decade, some companies have tried to export from Malaysia with limited success. Perhaps only Volvo and Mazda (with the CX-5) have been doing well with exports but Toyota started and stopped exporting its Malaysian-made Hiace to Thailand. Proton and Perodua export, of course, and of note is the fact that the Myvi made in Malaysia is taken by Daihatsu for sale in Indonesia as a Sirion under its own brand. That says a lot about Perodua’s quality as a Japanese carmaker would not simply use a product made by someone else.
Porsche and Sime Darby
The report by The Edge Weekly mentions that Porsche will use the Inokom plant in Kedah, which is not surprising. The plant, opened in the late 1990s, is owned by Sime Darby and a unit of the company is also the importer and distributor of the German sportscars. It would make things a lot easier for the same parties to also work together on an assembly project.
If Porsche is indeed going to do it, then it will not just be an assembly program to set up. The carmaker has not done completely knocked-down (CKD) activities before so it will have to set up a new department just for it. Perhaps, being in the Volkswagen Group, it will be able to get assistance from its colleagues in Wolfsburg as there is local assembly of some Volkswagen models being done in Pahang.
The Inokom factory in Kedah which assembles vehicles from the BMW, Hyundai, MINI and Mazda brands.
It is not just a matter of picking a model and putting it into a box in disassembled form for assembly in another country. The model has also to be engineered for local assembly, taking into account the level of automation and capabilities of the workforce. This is often the case with picking models for overseas assembly. Volvo had to first invest in laser welding equipment before it could consider assembling the XC60 in Malaysia.
The two Porsche factories in Germany are very advanced with manufacturing processes that ensure high quality. It is unlikely that all the manufacturing processes at Inokom will be identically advanced, so some modification may be needed, and that means an engineering program to develop a ‘Malaysian CKD model’.
It is possible that the ‘SKD’ (semi knocked down) approach will be taken although this approach was stopped by the government in mid-2019. With SKD, bodyshells can be imported already welded together. While the government no longer allows SKD, one never knows with a ‘customized incentive’ and also, the government of today is not the same one that formulated the 2020 NAP.
The Cayenne SUV would be a good candidate for assembly as it is popular throughout the region.
Righthand drive or lefthand drive? This is also another issue, especially if the volume is not going to be very big. What some carmakers have considered – Geely and Great Wall Motors being among them – is that a production hub in ASEAN could be dedicated to righthand drive (RHD) versions which they do not make in their own country. This is more applicable to the Chinese carmakers though as the other global players have long coped with making cars with the steering wheel on either side. So Malaysia could be designated to make RHD models for most of the ASEAN markets and when volumes get higher, then they can also consider LHD.
As for quality, there is nothing inferior about Malaysian assembled vehicles today. The manufacturers have many processes that ensure the quality standards are very high, even if they might not be exactly similar to those of factories in Japan or Germany.
The only thing is consumer perception even though one can say that in this era of globalization, people don’t really care as long as the quality is not poorer. Many years ago, when Proton was assembling the Lotus Elise and tried to export it to Japan, the customers there indicated that if they wanted to buy a Lotus, it had to be made in England. Likewise, when Mazda and Toyota wanted to source some of its models from Thailand for its ASEAN markets, customers in Singapore did not want them and wanted to have cars from the Japanese factories.
Finally, the price – which is often the first thing Malaysians think of when they hear that a model will be assembled locally. For a long time, they have been conditioned to expect that a model that is assembled in Malaysia will be cheaper and that is because there is a lower tax rate and in more recent times, the government also rewards those who make investments with subsidies that can offset production costs to allow lower retail prices. So yes, a locally-assembled Porsche could be cheaper though probably not by a huge amount.
The current Mazda CX-5 has been selling like hotcakes since its launch, partly thanks to its competitive pricing due to local assembly. In the first 6 months of this year, it is estimated that almost 9,000 units were assembled at the Mazda facility in the Inokom plant in Kedah. Some are exported to neighbouring countries as Mazda has chosen Malaysia as the production hub for the model.
Soon Bermaz Motor will add a another turbocharged variant to the CX-5 line-up, to cater to those who want an extra boost in performance. The new variant will be powered by a SKYACTIV-G petrol engine with a 2.5-litre displacement. The engine, without a turbocharger, is already available in the current range but does not have All-Wheel Drive (AWD).
19% more power, 63% more torque
Adding a turbocharger to the 2.5-litre engine bumps up the engine output by about 19% to 230 ps at 5,000 rpm, with torque getting a big jump of 63% to 420 Nm. And all of that 420 Nm is available from 2,000 rpm, whereas peak torque for the non-turbocharged engine is at 3,250 rpm. Power flows through a SKYACTIV-Drive 6-speed automatic transmission and is intelligently distributed to all four wheels with Mazda’s i-Activ AWD system.
Flagship level specs can be expected
At this time, Bermaz has not released the specs and price but from the preview unit on display, a very high equipment level can be expected. The CX-5 sports LED headlamps/DRLs and tail lamps and on each corner are 19-inch wheels with 225/55 tyres. The dashboard has the updates for the 2019 model year (we saw a heads-up display) and the Mazda Connect infotainment system now includes Apple CarPlay and Android Auto connectivity.
Safety-wise, the CX-5 2.5 Turbo AWD should have the complete Mazda i-ACTIVSENSE safety technologies to help the driver avoid an accident as well as reduce the effects of one if it occurs. High-tech features like LED headlights which can adjust their beams depending on conditions as well as pivot as the car goes around corners are already offered in some of the variants. There’s also autonomous braking – not just at the front to avoid a collision but also when reversing, which is a rare feature.
More information will be available when the new variant is officially launched in the near future. In the meantime, if you are in the Klang Valley from September 4 – 9, you can check out the CX-5 2.5 Turbo AWD at the Sunway Pyramid complex in Petaling Jaya.
