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local assembly

Volvo was the first company to assemble its cars in Malaysia in 1967 when the government began its localisation policy to accelerate industrialisation. 55 years later, the Swedish carmaker (part of China’s Zhejiang Geely Holding Group like Proton) is again a pioneer by being the first company to assemble a pure electric vehicle or battery electric vehicle (BEV) in Malaysia at the same plant in Shah Alam, Selangor.

The first car assembled in Malaysia in 1967 was a Volvo (above), and 55 years later, the first electric vehicle assembled in the country is also a Volvo (below).

Although it may seem like this move has come about because the government is allowing duty-free import and sale of BEVs now (and for the next few years), it is not the case. To plan for local assembly takes many years and it’s not as if Volvo Car Malaysia could send a message to Sweden to ask for CKD (completely knocked down) kits for assembly in 2022 when they can be imported duty-free. Furthermore, the plant would also have to be set up, especially with safety measures to handle the high-voltage systems of BEVs. Of course, Volvo Cars Manufacturing Malaysia (originally known as Swedish Motor Assemblies) already has experience with electrified vehicles since it has been assembling plug-in hybrid (PHEV) models for some time.

Regional production hub
In line with Volvo’s plan to have 50% of its global sales volume to be made up of BEVs by 2025, it has been quickly switching focus to BEVs around the world. Malaysia, being its production hub in ASEAN, is naturally a part of this plan which will see the brand being fully electric by 2030. From the plant in Selangor, BEVs will be exported to other countries in the region and because they are assembled in Malaysia, they can also be imported duty-free (provided they have a minimum of 40% ASEAN-sourced content) as part of the provisions of the ASEAN Free Trade Area (AFTA) agreement.

The first model, which will be officially launched on April 4, is the XC40 Recharge which was also the first Volvo BEV when it made its debut in 2019. Recharge is the umbrella name given to models which are electrified and in the coming 5 years, Volvo Car Malaysia will be launching one new BEV each year.

The XC40 Recharge has a similar appearance as the XC40 with a combustion engine (below) but the grille is different. With no need for radiator cooling, the space can be closed off.

While the price has not been announced yet, the technical details are already known since it would be the same model as sold elsewhere. It has two electric motors that draw power from a 75 kWh lithium-ion battery pack positioned between the front and rear axles. The system output is 300 kW (equivalent to 408 ps) with 660 Nm of torque, which gives a claimed 0 to 100 km/h capability of 4.9 seconds and a top speed of 180 km/h. A maximum range of 418 kms is claimed for a fully charged battery pack.

Volvo XC 40 Recharge

As with other BEVs, the XC40 Recharge can be recharged in various ways although DC fast-charging would have the shortest time. From one report we have read, the battery pack can be recharged to 80% of its capacity within 33 minutes when a fast-charger is used. Of course, this assumes that the level is very low and in practice, it may be that people recharge whenever they can and ‘top up’ so the time spent charging might not be as long.

Similar appearance to XC40
The external appearance of the XC40 Recharge is similar to that of the XC40 SUV but you can immediately tell that the model is the BEV version from the front end. With no need to cool a radiator, there is no real need for the traditional grille so that space is closed off. That’s better for aerodynamics too, which need to be as efficient as possible to minimise wind resistance.

2022 Volvo XC40 Recharge EV

2022 Volvo XC40 Recharge EV

Volvo XC40 Recharge

The equipment for the locally-assembled model may differ a bit from those sold in other countries but would still be high as Volvo wants to position itself as a premium luxury brand. With the emphasis on sustainability and recycling, a large percentage of materials would also be eco-friendly.

2022 Volvo XC40 Recharge EV

2022 Volvo XC40 Recharge EV

Android-powered?
The Volvo Car Group is the first company to team up with Google on integrating an infotainment system powered by Android so it is likely that this will be available. The infotainment system is fully integrated with Volvo On Call, the company’s digital connected services platform, and includes Google Assistant, Google Maps and the Google Play Store built-in. The new system also offers full integration of Android Automotive OS, Google’s open-source Android platform, with real-time updates to services and automotive apps created by the global developer community.

New Advanced Driver Assistance Systems
This being a Volvo, it does without saying that safety has a very high priority in every area. In terms of active safety systems, the XC40 Recharge has an Advanced Driver Assistance System (ADAS) platform with an array of radar, cameras and ultrasonic sensors. This gives it a broad range of capabilities to scan its surroundings and identify potential hazards, enabling a degree of autonomous motoring.

To help keep passengers safe and the battery intact in the event of a collision, there is a new and unique safety structure for passengers and battery alike in the XC40 Recharge. The battery is protected by a safety cage which consists of a frame of extruded aluminium and is embedded in the middle of the car’s body structure, creating a built-in crumple zone around the battery. The battery’s placement in the floor of the car also has the benefit of lowering the centre of gravity of the car, for better protection against roll-overs.

Volvo XC40 Recharge

Volvo XC40 Recharge

Additionally, the car’s body structure has not just been reinforced in the front but also at the rear. Here, the electric powertrain has been integrated in the body structure for better distribution of collision forces away from the cabin and reduce the strain on people inside the car.

First deliveries will start towards the end of April and buyers will get a charging cable, service package, 5-year/unlimited mileage vehicle warranty, 8-year battery pack warranty and 5 years of complimentary Roadside assistance.

Volvo is preparing infotainment systems for the future when the driver doesn’t have to drive

Following the appointment of Bermaz Auto Alliance Sdn Bhd (BAASB) as the distributor of Peugeot vehicles in Malaysia, the range of locally assembled models has been refreshed, starting with the Peugeot 3008 and 5008 which were launched late last year.

Today, the third model from the Stellantis assembly plant in Kedah (formerly owned by the NAZA Group) was officially launched, this being the 2008 crossover SUV. The 2008 has been in Malaysia since 2014 when the first generation was launched by the previous distributors. The current second generation was launched in Europe in 2019 but due to Nasim’s sudden end to handling the French brand, it did not make its appearance as expected in 2021 (though the COVID-19 would also have upset plans).

So as it makes a fresh start with BAASB, Peugeot has a brand new model to introduce to the market with the new design language that includes a new brand logo and Lion as well. The new Peugeot logo (which has changed at least 8 times in over 200 years) has an all-new take on the iconic Peugeot lion.

Compared to the first generation, the second generation has a more striking profile with a set-back windscreen that emphasizes the streamlined and athletic design. The more horizontal bonnet sweeps back from a large grille that is flanked by the distinctive ‘3-claw’ daytime running lights that are the signature of the latest Peugeot models.

The overall design also shares elements with the 5008 and 3008, bringing to mind earlier generations of Peugeot models that had common styling elements and the only difference (at a glance) was that they were of different sizes.

In the 21st century, sharing is a necessity to spread development costs and the 2008 uses Peugeot’s CMP (Common Modular Platform) small car architecture which was originally developed with China’s Dongfeng. The platform has been used for sub-compact and compact models since 2019 and is also engineered to be suitable for electric powertrains.

Inside, the 2008 is the first Peugeot model to get the new 3D i-Cockpit technology, a world’s first. This is the next evolution of the i-Cockpit that first appeared in the 208 in 2012, giving the popular hatchback an iconic feature that would become an element in the brand’s DNA. With the i-Cockpit, key information is directly within the driver’s line of sight, reducing the need to take the eyes off the road. It’s almost like the Head-Up Display (HUD) except that it does not project information on the windscreen ahead of the driver. It is therefore not as expensive to incorporate but at the same time differs from traditional instrument panel layout and positioning.

The new 3D version’s instrument cluster, fully digital and graphic, has advanced reflections that create the impressions of 3D graphics. Depending on the importance of information presented, the indications appear ‘closer’ to the eyes of the driver. The digital cluster displays.

The cluster is composed of a high-definition 10.25-inch ‘background’ thin-film transistor (TFT) and a 7-inch ‘foreground’ TFT projected on a semi-reflective blade. The leading-edge display creates a 3D projection of approximately 15 mm between the front and rear images. This projects information like a hologram and the information is dynamic and animated. It can get closer to the eye depending on the degree of importance or urgency, and potentially increasing driver reactivity by half a second.

The other elements of the i-Cockpit are the compact steering wheel, raised instrument display, and a series of piano keys (or toggle switches) allowing direct and permanent access to the main comfort functions. There is a 3-level arrangement for efficient ergonomics and driving comfort. Like a HUD, the information falls within the driver’s line of sight so that he or she does not need to take their eyes off the road ahead, improving safety. With traditional layouts, the eyes usually have to be diverted downwards a bit to view the meters, momentarily drawing the driver’s vision away from the road.

The Allure version comes with a 7-inch touchscreen display for the infotainment system. As with many new models, it has Apple CarPlay and Android Auto for smartphone connectivity. The system also responds to voice commands and Bluetooth can be used for handsfree telephony. Premium features include Automatic Climate Control, leather upholstery, mood lighting, electronic parking brake and cruise control.

Although having compact exterior dimensions, passenger accommodation has been maximised through intelligent packaging. The driver and front passenger have 6-way seat adjustment while the rear backrest is divided in a 60:40 ratio for variable layouts.

The boot is also pretty spacious with up to 434 litres of volume which can be expanded to 1,467 litres if you don’t have anyone in the back seats. There’s also another 80 litres in a compartment hidden under the floor which would be useful for valuable items although there is a removable tonneau cover to hide the contents of the boot.

All 2008s with petrol engines use the same 1.2-litre 3-cylinder DOHC 12V turbocharged PureTech engine. This engine has been a category winner a few times in the ‘International Engine of the Year’ Awards. With direct injection, it produces 130 ps/230 Nm and is paired with a 6-speed ATS III automatic transmission from Aisin.

According to Stellantis Senior Vice-President ASEAN & General Distributors, Christophe Musy, much effort has been put into ensuring that the engine is suited to local conditions. Extensive testing has been carried out and the Peugeot people are now more aware of the fact that conditions in this region are significantly different. There is assurance that there won’t be issues like those which affected the engines in the old 308.

Although the 2008 doesn’t have a suite of active safety systems like what you find in many new models, it nevertheless has a number of the systems that you find in such suites. These include Lane-Keeping Assist, High Beam Assist, Blind Spot Monitoring, Driver Attention Warning and an Active Safety Brake. Also included as standard is a Tyre Pressure Monitoring System, which should make regular checks unnecessary.

There are also front, side and curtain airbags, along with ABS, stability control, anti-skid control and hillstart-assist. Parents with small children don’t have to break the law as they can install childseats on the ISOFIX points securely, while warnings will remind everyone to use seatbelts.

Priced from RM126,753 (without insurance and without sales tax until June 30, 2022), the 2008 comes with a choice of 4 colours and a warranty of 5 years or maximum of 100,000 kms. Customers also enjoy free scheduled servicing for the first 3 years (or maximum of 60,000 kms.

Peugeot owners in Malaysia asked to update information with new company handling the brand

Although UMW Toyota Motor (UMWT) has been promoting hybrids a lot in the past few months, Toyota hybrids are not new to the Malaysian market. While the first model, the Prius which was the world’s first mass-produced hybrid car, was not marketed here, it did make a brief appearance in 2000 to introduce the hybrid electric technology to government officials. However, it would only be 10 years later that the government’s exemption of all duties for hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) would see UMWT selling many HEVS. It imported the Prius, by then in its third generation as well as the smaller Prius c and also the Lexus Ct200h. Without the high duties imposed, the models were attractively priced and sold well.

However, when the duty-exemption was withdrawn a few years later, prices shot up again and sales fell to zero. Although the government had hoped that the car companies would follow up after the duty-free period to assemble HEVs locally, only one company chose to do so while the others did not bother. The government instead focussed on encouraging the local assembly of ‘energy efficient vehicles’ (EEVs) for which incentives would be given to offset production costs and lower retail prices.

2022 Toyota Corolla Cross Hybrid

Last year, UMWT decided that it would move forward with a view towards electrification of its range, in line with the aim of Toyota Motor Corporation to achieve carbon neutrality by 2050. However, the company’s strategy does not entirely focus on electrification of its products to the extent that future models will no longer be powered by combustion engines in the near-term. Instead, it has a multi-pronged approach which will be determined by various factors in each country and region.

The more advanced countries have an extensive network of charging stations to support BEVs but in Malaysia, this is still something that is under development. To date, there are only around 500 charging stations in the whole country, mostly in urban areas and mainly in the Klang Valley. In Toyota’s view, that’s not a suitable situation to be introducing BEVs at this time, so it has chosen to start its electrification journey in Malaysia with HEVs. This is more practical as hybrid powertrains are not reliant on a charging infrastructure since they can recharge their battery packs on the move, and the technology cost of HEVs is lower than BEVs so they are within reach of a greater number of customers.

This led to the decision to invest RM270 million in the assembly plant and related expenditures to assemble HEVs locally. It’s the first time that a Toyota HEV is being assembled locally and though this may seem like it was prompted by the government’s efforts to promote greater electrification of motor vehicles as announced in the Budget last October, UMWT made their announcement last July, many months before the government’s announcement. In any case, the incentives are only for BEVs and HEVs will continue to receive the EEV incentives which will still help offset production costs.

Tonight, the launch of the Toyota Corolla Cross Hybrid represents the culmination of the project to assemble HEVs locally and it would be the first of a range of HEVs to come. As can be seen from the price, it is attractive enough, unlike BEVs which, even with full tax exemption, are starting from RM150,000. Since the Corolla Cross Hybrid is being assembled, UMWT has also decided to include the Corolla Cross with a 1.8-litre petrol engine as well and this is available in two variants.

As mentioned earlier, HEVs are not reliant on external charging so a customer can buy and use one just like any other car with a combustion engine. Hybrid electric technology, which has matured after 25 years, is a ‘transparent’ technology in that the driver doesn’t really see the difference (although the feel might be different). It’s just like the introduction of multivalve engines and EFI in the 1980s and turbochargers becoming common in the 2000s.

For those who may not be entirely familiar with hybrid electric technology, here’s a quick explanation. As the term suggests, the powertrain is a combination of two power sources – a petrol engine and an electric motor (actually the Toyota system has two motors). In some systems, they may work independently but Toyota’s system, now in its fourth generation, is designed to work in a collaborative manner. Running conditions and the amount of energy in the battery pack determine how the collaboration works but basically, the car will move off with only electric power and as the speed increases, the engine will provide the additional power needed to go faster.

2022 Toyota Corolla Cross Hybrid

While cruising, the system will be varying the use from each power source so at times, the electric motor may be doing all the work, which means no fuel is used and that helps in fuel-saving. It can be quite significant as we discovered on a drive from the Klang Valley to Penang where the average consumption was 6.4 litres/100 kms or 15.6 kms/litre. Other members of the media were able to get even better figures.

The motor relies on electricity supplied by the lithium-ion battery pack so what happens when there is no more? That should not happen as the amount of energy will be constantly replenished while the car is moving. This is done by regenerative braking (where energy lost during braking is converted into energy for electricity) or the generator (the second motor) charges the battery pack. In the event that there is heavy usage of electricity, then the engine will be used more as the recharging takes place.

This self-charging capability takes away the ‘range anxiety’ that users of BEVs may have. This relates to the concern about running out of electricity on a long journey. With a HEV like the Corolla Cross Hybrid, you can still move using the engine and can refuel at one of 3,700 stations all over the country. But with a BEV, you might be stranded by the side of the highway or along some remote country road. It will be a long, long time before BEV technology is so advanced that you can recharge with a portable powerbank like you do now for your mobilephone.

Battery technology has been constantly advancing since the first Prius. In the early days, the battery pack was big and heavy and did not hold a lot of electricity. Since then, the battery packs have become smaller and yet more energy-dense while using more efficient processes like lithium-ion interaction. Their cost has also come down while reliability and durability have improved. For owners’ peace of mind, UMWT offers an 8-year warranty on the battery pack and this warranty, unlike others, includes some hybrid-related systems as well. There’s also an option to extend the warranty to 10 years, but the general vehicle warranty is 5 years with unlimited mileage.

2022 Toyota Corolla Cross Hybrid

The powertrain for the Corolla Cross Hybrid has a 1.8-litre 4-cylinder petrol engine which is the same as the one in the Corolla Cross 1.8V and 1.8G. It produces 98 ps/142 Nm while the primary electric motor contributes 53 kW (equal to 72 ps) and 163 Nm of torque. Power delivery is via an E-CVT specially engineered for use in HEVs.

There are 4 modes – NORMAL | SPORT | ECO | EV – which the driver can select at the touch of a button while on the move to suit driving preferences or to maximize fuel-saving. The EV mode is a unique mode which gives an experience similar to driving a fully electric vehicle. In this mode, only the electric motor is used so there are zero emissions and the vehicle moves around noiselessly. The distance can be several hundred metres (depending on battery condition and driving speed) and would be ideal when moving around a carpark looking for a space.

2022 Toyota Corolla Cross Hybrid

The air-conditioning system in the Corolla Cross Hybrid is also unique, specially designed for HEVs. Unlike conventional air-conditioning systems which use an engine-driven compressor to pump the refrigerant around, the system is electrically powered. It can therefore run even when the engine is off, drawing its power from the battery pack. Should the battery pack capacity be low, the engine will restart to recharge it as it continues to power the air-conditioner’s electric compressor.

[Click here for a video of our first driving impressions of the Corolla Cross Hybrid]

Appearance-wise, the Corolla Cross Hybrid is not exactly new on Malaysian roads as the non-hybrid model was introduced last April, imported from Thailand. However, due to the long period of shutdown in the middle of the year and some supply issues caused by the microchip shortage, the number on the roads is limited. Now, as a locally-assembled model, you should start to see more of them.

2022 Toyota Corolla Cross Hybrid

Where is the past, a variant bodystyle of the Corolla would still have some common elements with the sedan (usually the front end), the Corolla Cross Hybrid looks like a different model altogether. Toyota could have raised a Corolla Hatchback and ‘ruggedized’ its looks (as some manufacturers do to create a ‘SUV’) but they instead came out with a new SUV design and placed the model in the family of the all-time bestselling car in the world. To differentiate a Corolla Cross Hybrid and a non-hybrid, there are blue accents on the grille badge, logo on the engine, headlights and the rear badge.

2022 Toyota Corolla Cross Hybrid

Besides being the first Toyota HEV assembled locally, the Corolla Cross is also the first model with Toyota New Global Architecture (TNGA) to be assembled in Malaysia. TNGA has been used for all recent new models and has been engineered for variability, allowing engineers a lot of freedom to adapt it to different types of models. It is used for sedans and hatchbacks as well as SUVs and while there is differentiation in designs, there are also many common elements and parts and that is one of the secrets of reducing production costs.

2022 Toyota Corolla Cross Hybrid

The passenger car-like interior of today’s SUVs was pioneered by the Toyota RAV4 some 25 years ago. This is continued in the Corolla Cross Hybrid andthere is claimed to be significantly better headroom than other competitor SUV models in the same class. The wide body dimensions also allow the centre console to be wider for more storage space.

The blue accents on the exterior that identify the Corolla Cross Hybrid are also evident in the instrument panel. There is a colour 7-inch Multi Information Display (MID) with two styles – detailed and simple. Due to the quietness of operation, a READY indicator is shown to let the driver know when the system is ready to run when the START/STOP button is pressed.

2022 Toyota Corolla Cross Hybrid

2022 Toyota Corolla Cross Hybrid

Various types of information are presented to the driver in the MID and one of the displays shows the flow of power and electricity between the engine, motor, battery pack and wheels. The flows are shown in real-time and show the driver when the battery is being recharged and the level of electricity in it.

2022 Toyota Corolla Cross Hybrid

To help the driver of the Corolla Cross Hybrid achieve the best fuel economy, an ECO display in the instrument panel provides guidance on accelerating optimally. At the end of each journey, the driver can refer to an ECO Score to see how eco-friendly the driving style has been. With such a feature, drivers may be inspired to achieve a good score daily and save more fuel!

A large 9-inch panel in the middle of the dashboard provides information for the infotainment systems, as well as the image from the rearview camera. The system is Apple CarPlay and Android Auto ready so compatible smartphone apps can easily be transferred and accessed from the dashboard. Other connectivity options include USB mirroring, AUX and Bluetooth.

2022 Toyota Corolla Cross Hybrid

To assist the driver during parking or manoeuvering the vehicle is a 3D Panoramic View Monitor (shown above) which also uses the display on the 9-inch panel. Utilising small cameras on all sides of the vehicle, a 3-dimension view of the surroundings on all sides is presented to the driver. This not only enables easier positioning of the vehicle but also allows the driver to spot hazards or little children that might not be visible from the driver’s seat.

The air-conditioning system operated by an electric compressor has automatic operation to keep the cabin at the desired temperature. Airflow and temperature can be set differently for the driver and front passenger and with the S-Flow function, the airflow will be concentrated only on seats with people sitting on them. Cool air is also carried to the rear occupants by additional vents between the front seats.

2022 Toyota Corolla Cross Hybrid

Although a HEV has generally lower noise levels than a car with a combustion engine, additional efforts went into making the cabin quieter by adding an insulator sheet under the bonnet to isolate noise from the engine bay. The windscreen glass is also an acoustic type, reducing transmission of wind and other external noises.

Besides the convenience of a Smart Entry & Push Start System to lock/unlock the doors and start/stop the engine, the Corolla Cross also comes with a Power Back Door that opens and closes automatically by just positioning a foot under the rear bumper which has a proximity sensor. This allows for handsfree operation which will be convenient when both hands are holding bags or other items. For safety, the automatic opening will not work if the engine is running.

2022 Toyota Corolla Cross Hybrid

2022 Toyota Corolla Cross Hybrid
Instead of being installed in the boot area as in past models, the battery pack is under the rear seat, so no boot space is lost.

Besides the high-strength TNGA platform, the structure of the Corolla Cross is engineered to withstand impact forces from all sides during an accident, reducing or preventing injuries to the occupants. In crash testing and technical evaluation by ASEAN NCAP, the Corolla Cross Hybrid and Corolla Cross, as with many other Toyota models, has received a maximum 5-star safety rating.

The Corolla Cross Hybrid and Corolla Cross 1.8V come with Toyota Safety Sense (TSS) 2.0, a suite of Active Safety technologies that help a driver avoid accidents or reduce the damaging effects should a collision occur. Besides having automatic emergency braking and automatic high beam adjustment among the 5 main systems, the adaptive cruise control is also available at all speeds, maintaining a safe gap from the vehicle ahead whatever the set speed is. It can even bring the vehicle to a complete stop if the preceding vehicle stops without the driver needing to depress the brake pedal. When the vehicle ahead starts to move, it will automatically resume moving as well.

2022 Toyota Corolla Cross Hybrid

[Click here to download the e-brochure of the Toyota Corolla Cross Hybrid]

Toyota: “No customer is left behind” in quest for carbon neutrality

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.

Bermaz Auto takes over Kia business in Malaysia, with local assembly to commence in 2022.

The first units of the new Peugeot 2008 have left the production line at the Stellantis manufacturing plant in Gurun, Kedah. The production is meant for the Malaysian market as well as for export to neighbouring countries. Sales will start in Thailand this month and there will also be lefthand drive versions produced for markets such as the Philippines.

“Built in ASEAN for ASEAN, we’re proud to announce that the first locally-produced new Peugeot 2008 vehicles will be on their way to customers in Southeast Asia in the coming months,” said Christophe Musy, Senior Vice-President, ASEAN & General Distributors at Stellantis.

“This is an important step in our plan to enlarge the Stellantis manufacturing footprint in the region and the first example of our ambition to expand the portfolio of Stellantis vehicles built in Southeast Asia,” said Mr. Musy.

The 2008 comes with Full LED Headlights, Peugeot’s signature 3-claws Light, the new Peugeot i-Cockpit 3D, 3D Quartz Cluster and 7-inch HD Touchscreen with Toggle Switches. It also has the latest Advanced Driver Assistance Systems (ADAS) that include Automatic Emergency Braking, Driver Attention Assist 3, and Active Blind Spot Detection + Lane Keep Assist.

Peugeot engineers have done extensive endurance and quality testing in local conditions, with up to 200,000 kms around Malaysia in the diverse local climate and environmental landscape to ensure it is suited for Southeast Asian conditions.

New Peugeot 2008.

Despite forced closure of the plant for an extended period (due to government actions to fight the pandemic), the Stellantis manufacturing team in Malaysia was able to keep to production timelines. By utilizing dynamic online tools and methodologies, they virtually collaborated with colleagues in China and Europe.

“What we’ve been able to achieve at the Gurun plant in Malaysia over the past few months is a great achievement, and we are now focused on continuing the momentum to keep up with the increased customer demand for locally-manufactured Peugeot vehicles in the region,” said Mr. Musy.

Besides the 2008, the plant in Gurun also assembles the latest Peugeot 3008 and 5008.

Stellantis (a merger between the Fiat Chrysler Automobiles and the French PSA Group) acquired the NAZA Automotive Manufacturing Sdn. Bhd. plant in October this year. Over 170 employees have returned to work and the company is working with more than 50 local suppliers with production ramping up for the remainder of 2021 to meet local demand. The plant assembles the 3008 and 5008, besides the 2008.

To know more about Peugeot models and aftersales services in Malaysia, visit www.peugeot.com.my. Peugeot owners in Malaysia are urged to provide their contact details to Bermaz Auto Alliance Sdn Bhd which is the new distributor for the brand.

Chrysler (FCA) ‘re-marries’ to form another mega corporation with Groupe PSA

In the 1970s, a company called Asia Motor was the first distributor of Mazda and Peugeot cars in Malaysia. It handled the two brands (and even assembled some models at its own plant) until the late 1980s when other companies took over each brand. Then in the early 2000s, both brands somehow ended up being taken on by the same company – Cycle & Carriage – which sold their cars till 2008. Mazda was then taken up by Bermaz while Peugeot went to Nasim Motors.

An advertisement from the 1970s when a company called Asia Motor sold both Peugeot and Mazda cars.

Now, history seems to be repeating itself as the Mazda and Peugeot brands are again being handled by the same company or rather, the same group. Late last year, Bermaz formed a new joint venture company with Berjaya Corporation known as Berjaya Auto Alliance Sdn Bhd (BAASB) which was appointed to the new role of Peugeot distributor. The BAASB name has since changed to Bermaz Auto Alliance Sdn Bhd and the company which imports the vehicles is Mega Galeri Sdn Bhd. While BAASB and Bermaz Motor are separate companies, the core people are the same and they are veterans in the auto industry.

Following its appointment, BAASB was busy setting up the new business which was interrupted by the pandemic and long lockdown period, delaying some plans. But since mid-August when the government began to relax restrictions and businesses could operate again, BAASB has been busy preparing to launch new models.

Meanwhile, in January this year, Peugeot’s parent company, Groupe PSA, had merged with the FCA Group (which has Chrysler and a number of Italian brands) to form Stellantis. While this did not really affect BAASB, it did see the change of ownership of the plant in Kedah which was originally bought over from the NAZA Group by Groupe PSA. The intention was to use the plant as a regional hub for Peugeot models and this was already underway.

Peugeot 5008
Peugeot 3008

2008 to join locally-assembled range
Currently, three models are being assembled at the plant – the 3008, 5008 and 2008, the latter to be launched in the near future. With no more restrictions on gatherings and crossing borders, BAASB wasted no time organizing a media event to introduce themselves, the Stellantis people and the new 3008 and 5008 with a quick drive to Genting Highlands and back.

Both the SUVs are not new to the market, the 3008 having been introduced in second generation form in 2017, and the 5008 in 2018. However, they have received updates since their original introductions which adopt the latest design language of the carmaker. While the overall styling is unchanged, the notable differences can be seen in the front end. The grille is new with a large mass of textured elements and no frame.

The Peugeot Lion is also new and unlike previous ones, only its head is now shown (for corporate materials but the full body remains on the products). This is 11th time since the 1850s (although the original company was founded in 1810) that the brand identity and logo have been changed and the recreated emblem is said to ‘a shift in stance; a new state of mind, and a new lifestyle’. Above the Lion, on the edge of the bonnet, is the model identifier.

As their first digit indicates, the 3008 and 5008 are positioned at different levels in the market with the ‘double 00’ used for models that have a taller body structure, which means SUVs and crossovers. Comparing the two, the 3008 has a sleeker profile with bold lines whereas the 5008, being a 7-seater, is essentially an MPV but can also pass as a SUV. Both cars certainly have a premium appearance which is not unexpected of European brands.

Same engine for both models
To simplify production, both models use the same engine (for now at least) which is the same 1.6-litre THP 4-cylinder unit that came with the original introduction. Power output is 167 ps with 240 Nm of torque and the 6-speed automatic transmission is also the same one supplied by Aisin. To optimize grip on different surfaces, there are 5 modes which the driver can choose using a rotary dial.

Known as Advanced Grip Control, the system has been available in some Peugeot models since 2013 and adjusts the grip and torque to the front wheels. It helps most on very slippery surfaces when there is a need to be more sensitive with the throttle and a computer can do that better than a human foot. In most cases, drivers can probably leave it in standard mode which will be fine for most conditions.

Peugeot i-Cockpit
The highlight of the interior which Peugeot usually starts off with is the i-Cockpit. First introduced in 2012, this dashboard concept has evolved over the years and in the 3008 and 5008, it has been fully digitized. Peugeot calls the 12.3-inch digi-graphic instrument panel a ‘head-up instrument panel’ which might have people looking for the head-up display (HUD) on the windscreen ahead. However, what Peugeot’s designers have done is to position the panel in such a way that it allows the driver to keep his head up to watch the road ahead as well as still see the information on the panel.

An important contributor to the effectiveness of this arrangement is the steering wheel which is compact and flat at the top and bottom (looks like something from a racing car). It allows a clear view of the display and though compact, there is surprising ease of maneuverability. With the arms no longer needing to be so open and wide to hold the steering wheel, the actual amount of movement during maneuvers is reduced. Incidentally, for the 5008, there are also paddle shifters.

The third element of the i-Cockpit is a display in the middle of the dashboard. Resembling a tablet, this has a high-resolution full colour screen which is now 10 inches instead of 8 inches wide. It provides supplementary information and can be accessed either by touching the screen or by using the row of ‘piano keys’ below.

Connectivity is extensive with conventional cable ports, Bluetooth and Apple CarPlay/Android Auto compatibility (for Android Auto, a cable is needed and, of course, the app installed in the smartphone). Those who have the latest smartphones with wireless charging will also be pleased to find that there is a wireless charging pad added to the vehicles.

Comprehensive equipment list
With the Mazda range, the Bermaz team has always made it a point to offer the most comprehensive equipment level possible to give the best value for money. The same thinking seems to have gone into the 3008 and 5008 (available only in one version) as standard equipment includes a panoramic sunroof, handsfree powered tailgate, power adjustments for the front seats, leather upholstery, and dual zone air-conditioning.

The differences in overall length – 4670 mm for the 5008 and 4510 mm for the 3008 – are indicative of the different occupant capacity. In the case of the longer model, there is a third row of two seats which can be folded flat when not needed. While being flat when not in use is good, it does not mean that the seat is sitting right down on the boot floor with limited legroom.

The extra length of the 5008 gives it a minimum of 952 litres of boot volume, 361 litres more than the 3008. At maximum volume with the rear seats folded down, the 3008’s volume can go up to 1,670 litres while the 5008 has an expansive 2,042 litres.

As for safety, both models have been rated the maximum of 5 stars by EuroNCAP and should certainly be able to achieve the same if assessed by ASEAN NCAP. There are extensive active and passive safety systems which assist the driver but no integrated system which we are seeing in many other cars these days.

BRIEF DRIVING EXPERIENCES
We had a chance to try both models driving Genting Highlands and back to the BAASB headquarters at Glenmarie, Selangor. Although it’s been a while since being behind the wheel of these French cars, there was still a familiarity in feel that Peugeots uniquely have. It’s a feeling of stability and supple ride that you do not expect of a car that also handles well. A Peugeot engineer once suggested that it’s long experience in suspension tuning that has achieved that and something to do with damper valving.

The driving dynamics are competent and confidence-inspiring with a solid feel at all speeds. The THP engine delivers strong midrange which made for easy overtaking and the transmission’s operation was fairly unobtrusive. Between the 3008 and 5008, the smaller model felt nicer to drive with less roll and a bit more nimbleness. This could be largely due to the 100+ kg difference in weight more than the body size.

But unlike older Peugeots (and older cars in general), today’s new generation of cars have a lot of electronic systems and because electronics do not take up much space, many more features are crammed in. To use them, you need to spend a little while figuring out which button to press or how to bring up the menu on the screen.

It can be daunting at first and European manufacturers have different control approaches to the Japanese. So if you are switching from a Japanese model to a Peugeot, be prepared to have to relearn many things! But having said that, once you become familiar with all the controls, then they make driving more convenient.

The i-Cockpit layout – specifically the instrument panel – is ergonomically sound in concept but also needs a bit of getting used to as it is located differently from conventional instrument panels. The display can be configured from minimal to maximum information, depending on your preference.

One thing that is disconcerting is the tachometer and this has been the case since the first i-Cockpit. The sweep of the pointer does not follow convention, ie from left to right. Instead, for some sort of visual symmetry, it sweeps from right to left. In the early versions with traditional meter displays, it was sometimes disturbing to see the pointer somewhere at the 2 o’clock position which would usually mean you are running at high revs but actually, the revs are around 3,000 rpm.

With the latest graphic display, this is less disturbing because the calibrations are not show entirely and only a small segment before and after are shown. But as mentioned earlier, it’s a matter of getting used to this difference and after a while, an owner will be okay. For us who spend only a couple of hours with the car, that familiarity is not always achieved.

It’s the same as having signal stalks on the left side or right side and getting into a car where it is on the opposite side to what you are used to. You keep activating the wipers and curse a lot for a while but after a week or so, you no longer have that problem.

Want to buy one?
Both models are offered with a choice of three common colours (Amazonite Grey, Pearl White and Nera Black) and Cuprite Brown exclusively for the 3008, with Emerald Crystal only for the 5008. Pricing starts from RM161,616.66 for the 3008 and RM177,311.90 for 5008 without insurance. As they are both assembled in Malaysia, the government is exempting the full amount of sales tax until June 30, 2022 so you save some money.

For those who are wondering about aftersales service, we feel sure that the BAASB team will certainly be making sure that it is of the high quality appropriate to the brand. They’re giving free maintenance for the first 3 years (or maximum of 60,000 kms) as well as a 5-year warranty or maximum of 100,000 kms.

2021 Peugeot 3008 5008

Information on showroom locations can be found at www.peugeot.com.my and if you are already owning a Peugeot, BAASB would really like to get your contact details. This will enable them to keep in touch with you and provide the aftersales support, especially if there are any technical updates available for your car.

Peugeot owners in Malaysia asked to update information with new company handling the brand

NAZA Automotive Manufacturing, the assembly plant previously set up by the NAZA Group and then taken over by the Groupe PSA has now been acquired by Stellantis, the new company created out of the merger between the French Groupe PSA and the FCA Group in January this year. Stellantis obtained full ownership of the 17-year old plant, located in Gurun, Kedah, at the end of October.

The completed acquisition marks a significant milestone for Stellantis in southeast Asia as it has plans to invest and expand its footprint as part of a localisation strategy. “We have an ambitious growth strategy that will enable us to build on the existing production outputs in Gurun, as well as extend the breadth of brands and models within the Stellantis portfolio built in ASEAN for ASEAN. This is a very exciting proposition,” said Christophe Musy, Stellantis’ Senior Vice-President, ASEAN & General Distributors.

File photo of NAM in 2015.

“Stellantis is deeply committed to growing our presence in ASEAN, and taking full ownership and responsibility of the plant in Gurun, Kedah is a very important step towards strengthening our operations, production outputs and workforce in the region,” he added.

Updated versions of the Peugeot 3008 and 5008 are now rolling out after operations resumed recently. The SUVs are for the Malaysian market as well as for export to neighbouring countries.

Operations at the plant were suspended for over 2 months as part of the government’s effort to fight the COVID-19 pandemic, and have resumed recently. Assembly of the updated Peugeot 3008 and 5008 have been rolling out at pre-pandemic production rates, with volumes now ramping up for the remainder of 2021.

Both models are supplied to Malaysia, Thailand, the Philippines and other ASEAN markets. In the near future, the locally-assembled range will be joined by the 2008, Mr. Musy revealed. He added that, in Malaysia, they are now working with their new sold distributor, Berjaya Auto Alliance Sdn Bhd (BAASB), which was appointed last December.

The next Peugeot model to be assembled in Malaysia will be the new 2008.

“We are focused on our mission to achieve world-class manufacturing in Gurun, to build high-quality, Malaysian-produced vehicles for southeast Asia. We are working closely with our partners to increase plant capacity by almost 40% to meet demand and this, combined with our strong product plan and determination to achieve the highest standards in quality and safety, has set us up for great success in Malaysia,” he said.

Groupe PSA starts Peugeot vehicle exports from Naza Automotive Manufacturing, its production hub for ASEAN

As announced in July this year, UMW Toyota Motor (UMWT) is making a big investment to introduce hybrid electric technology in Malaysia in a bigger way. The last time the company actively sold hybrid models was about 10 years ago when the government allowed hybrids and electric vehicles to be sold duty-free to everyone. After that exemption ended, prices were no longer as cheap and sales of hybrids dwindled. UMWT didn’t give up though, and besides making available hybrid variants of Lexus models, it also sold the Camry Hybrid for some years.

Now comes not just another push but a bigger one which the company says is officially launched today. It’s a RM270 million investment which will bring hybrid electric technology to more Malaysians and contribute to the more than 18 million hybrid vehicles already sold by Toyota worldwide since the first model – the Prius – was launched in 1997.

Toyota Prius – first mass-produced hybrid electric vehicle in the world.

Long experience in hybrid technology
Toyota can promise Malaysians advanced hybrid technology because it has long experience developing them. Starting with fundamental technology, Toyota’s engineers have constantly made advancements and innovations that put the brand at the forefront of hybrid technology. To show that the technology is not just about fuel efficiency, Toyota has also demonstrated how hybrid powertrains can also offer high performance with 4 consecutive wins at the Le Mans 24-Hour endurance races.

Toyota’s hybrid racing cars have won the 24-Hour Le Mans endurance race 4 times in a row, demonstrating that hybrid powertrains can also offer high performance.

UMWT’s push towards greater electrification follows the trend globally and support’s Toyota’s commitment to achieve carbon neutrality in all its activities. This means achieving net-zero CO2 emissions throughout the cycle of manufacturing, transporting, energy generating, fueling and/or charging, and the recycling and disposal of vehicles.

Toyota aims to achieve carbon neutrality not only in its products but also in all its activities, including those at factories. This is the ASSB, UMW toyota Motor’s assembly plant in Bukit Raja, Selangor, where the hybrid models will be assembled in the near future.

Deputy Chairman of UMW Toyota Motor, Akio Takeyama, said that for the automotive industry, carbon neutrality involves a very challenging process to ensure that zero emissions can be achieved. It requires offering consumers sustainable solutions which meet their diverse needs.

Toyota already has various types of electrically-powered vehicles, some with hybrid powertrains (a small petrol engine working with an electric motor, battery electric vehicles (BEVs) that only use electric motors and even powertrains that get energy from hydrogen fuel cells. All these are already available in the market but availability depends on the energy policies and readiness of different countries. So in countries which may still lack certain elements for fully electric models, the hybrid approach may be the best and more practical in the short term.

“For the immediate future, we are absolutely positive that the Hybrid Electric Vehicle (HEV) is the most accessible and realistic choice for Malaysian customers in terms of practicality and infrastructure, with an enormous potential  in Malaysia. It is a realistic bridge towards vehicle electrification while efforts are still being undertaken to help realize enablers for BEVs, such as cost-reduction, energy mix improvement and infrastructure  development,” said Mr. Takeyama.

HEVs comparable to fully electric vehicle in emissions
While BEVs may not generate CO2 emissions at all, HEVs have almost similar values in the process of vehicle  production, energy generation and ownership over a period of 10 years. This means that, given the current situation in Malaysia, HEVs can be equally effective as BEVs.

“Toyota HEVs are at their most advanced today, and present the most realistic, immediate,  economical and practical solution for mass market production and sale in terms of reduced CO2 emissions, practical usage, and price acceptance by customers,” Mr. Takeyama said.

He added that no new infrastructure needs to be built – referring to charging stations – as HEVs do not need to be recharged. The battery pack is constantly recharged while driving. This will help to eliminate the ‘range anxiety’ that is a concern to consumers who worry that they may be stranded if they run out of electricity in the battery pack. Furthermore, the HEV can be driven like a car with a combustion engine, and go long distances without any problem.

The Toyota Hybrid Electric System has a petrol engine and electric motors working together and in certain conditions, it is possible to run using just the electric motor alone. The battery is constantly recharged – even during braking – so owners do not have to worry about finding a recharging station. And even if the battery does not have sufficient energy remaining, it is still possible to continue using the petrol engine.

Constant improvement of hybrid system
Since 1997, the Toyota’s Hybrid Electric System has been constantly improved with new technology, becoming more efficient and the cost has also been going down as volumes have rapidly risen. It is now in its fourth generation and of the various versions for different models, UMWT has mentioned ‘dual power’ with a petrol engine and two electric motors. It is possible, under certain conditions, to run entirely on electric power for a short distance, with quiet movement and zero emissions.

A concern which was apparent among buyers of the hybrids sold before was the reliability of the battery pack which is manufactured by a subsidiary of Toyota. Admittedly, the early battery packs did have issues but battery technology has advanced very quickly and manufacturers addressed the issues quickly. To give peace of mind, companies offered extended warranty coverage specifically for hybrid battery packs, with UMWT giving up to 8 years coverage.

The Toyota Hybrid Electric System has evolved greatly from the one in the first Prius which occupied a lot of space (above), to the latest one (below) which is more compact and also offers better efficiency and performance. The battery packs have also become less bulky and can store larger amounts of energy to provide better range.

More reliable and durable battery packs
Today’s battery packs (lithium-ion type shown above) are much more reliable and durable – and have even better energy storage – as they are designed to last as long as the vehicle. They offer safety, long life service, a high level of quality, and a high level of performance. Toyota’s own subsidiary – Prime Planet Energy & Solutions, a joint venture with Panasonic – has extensive experience in battery development and manufacture. It has achieved battery durability and performance through understanding how the  vehicle is used and the state of the battery under such conditions.

“We have the right technology, the right products in support of the existing infrastructure and energy policies. We are in an ideal position to contribute to Malaysia’s ambition of becoming a hub for advanced  technologies and to reduce its carbon footprint. This will be an important cornerstone towards ensuring future policies and the people are well positioned and prepared to accept vehicle electrification,” said  Ravindran K., President of UMW Toyota Motor.

What models for Malaysia?
The question now on everyone’s mind is what models will be assembled locally. Over the years, Toyota’s range of HEVs has expanded considerably and in 2021, there are at least 45 different models available. Obviously, UMWT won’t be able to offer all of them and the logical thing would be to choose models in common with other ASEAN markets. In both Thailand and Indonesia, there are HEV versions of the Corolla Cross, Corolla Altis, C-HR and Camry.  Since the models are to be assembled locally, the Corolla Altis Hybrid would be a very strong possibility and as the Corolla Cross Hybrid is a variant on the same TNGA platform, it too can be easily added to the assembly line at the plant in Bukit Raja, Selangor.

Toyota currently has 45 hybrid models in its global range. These two, which are already sold in neighbouring countries, would be strong candidates for assembly in Malaysia.

It’s often been said that Toyota is like an oil tanker; it may take a while to change course but once it has, it has massive ‘force’ behind it to push ahead strongly. In the case of hybrid models, UMWT may not be the first in the market to assemble such vehicles but now that the decision has been made to do so, it can be expected to become a major brand in the growing HEV segment.

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 Centre Ara Damansara 2020
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.”

Shell and Porsche team up to provide first cross-border high-performance charging network in Southeast Asia

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UMW Toyota Motor (UMWT) has announced plans to assemble Toyota hybrid models in Malaysia, joining the still-small group of companies that are doing so. The move is driven by Toyota Motor Corporation’s (TMC) global commitment to deliver ‘mobility for all’ and produce ‘happiness for all’ through its commitment towards a ‘Clean, Safe and Secure Society’.

On a larger scale, TMC is aiming for carbon neutrality by 2050 in all its processes. Carbon neutrality means almost zero emissions of carbon dioxide (CO2) which is a ‘greenhouse gas’ that is known to have a significant effect on global warming, causing climate change.

TMC’s reduction of CO2 emissions will encompass the lifecycle of manufacturing, transporting, operating, fuel and/or charging, and recycling and disposal of vehicles. This is in line with the global approach towards lifecycle assessments of the potential environmental impact of a product throughout its lifecycle.

The Prius – one of the many models in Toyota’s range of hybrid electric vehicles.

Full line of Low Emission Vehicles
As part of this strategic initiative, the carmaker will produce a full line-up of Low-Emission Vehicles which will have electrified powertrains. There will be various powertrains to meet diversified mobility demands all over the world as well as the different rates of vehicle electrification.

“Toyota’s global direction is to achieve carbon neutrality by 2050. This is also in line with the Malaysian government’s aspirations to position the country as a progressive nation that promotes more green technology and environmental sustainability,” said UMW Toyota Motor’s Deputy Chairman, Akio Takeyama.

“This is indeed an exciting time for the Malaysian automotive industry and UMW Toyota Motor is fully charged and ready to champion this Malaysian dream. In order to achieve this, the most realistic, practical and immediate solution is Toyota Hybrid Electric technology and vehicles,” he added.

Toyota is among the pioneers of mass-produced hybrid electric vehicles, having started selling them in the late 1990s. The hybrid technology has also been used in Lexus models like the CT-200h (shown below).

A pioneer in hybrid technology
Toyota has long experience in electrification and was a pioneer in the production and marketing of hybrid vehicles. Since the late 1990s, the company has sold more than 17 million hybrid electric vehicles as well as Hydrogen Fuel Cell Electric Vehicles (FCEV) worldwide.

This number of vehicles with low emissions has made Toyota’s cumulative contribution to CO2 reduction amounting to 140 million tonnes of CO2, or approximately 1.5 million conventional passenger vehicles per year over the past 20 years.

The CO2 reduction will continue and even increase as TMC aims to sell 8 million electrified vehicles annually by 2030. In April this year, the company announced an electric vehicle strategy that will see 15 new Battery-Electric Vehicles (BEVs) introduced by 2025. Including FCEVs, the total number of electrified vehicle models will be 70 by 2025.

Located in Bukit Raja, Selangor, Assembly Services Sdn Bhd (a subsidiary of UMW Toyota Motor) currently assembles the Yaris and Vios models. It began operations in January 2019.

RM270 million additional investment
Toyota’s operations in Malaysia, via the 39-year old joint-venture UMWT, will support the ‘big picture’ in achieving carbon neutrality by investing RM270 million in its manufacturing operations. This amount includes, amongst others, the introduction of a new and technologically-advanced generation of hybrid models.

“We are ready [with the introduction of Hybrid Electric Vehicles], and the technology; service support; current infrastructure; global and domestic policies; the level of affordability and cost effectiveness; and, consumer awareness and demand, particularly in Malaysia, are now at its most ideal conditions to pursue a new and exciting journey towards achieving carbon neutrality,” said Mr. Takeyama.

While neighbouring countries are encouraging the introduction full electric vehicles, Mr. Takeyama said that  research has shown that the reduction in CO2 emission levels between fully electric and hybrid electric vehicles are almost similar when considering electricity source, and from production and throughout ownership.

For Malaysian consumers, the local assembly of Toyota hybrid vehicles will mean they are offered at a price point that is practical and accessible to the greater masses. “While time is still needed for full electrification, the hybrid electric technology is ready today and the current infrastructure permits it to be rolled out on a greater scale in Malaysia,” added Mr. Takeyama.

The locally-assembled Camry Hybrid introduced in 2015.

The time-frame for the introduction of locally-assembled hybrid models is not known yet, but this will not be the first time that UMWT is selling and assembling hybrid models for the Malaysian market. During the period when the government provided full duty exemption on hybrid and electric vehicles, UMWT imported models such as the Prius, Prius c and Lexus CT-200h. Later on, it assembled the Camry Hybrid which could be sold at a competitive price due to incentives offered by the government.

The investment will be additional to the RM2 billion that was made the construction and commissioning of a second assembly plant in Bukit Raja, Selangor, which began operations in January 2019. The original assembly plant, which continues to operate in Shah Alam, was among the earliest assembly plants in Malaysia and was one of the largest as well.

Other environment-related initiatives
“As a manufacturer, the immediate steps we can take to prevent global warming are to address our vehicles and manufacturing processes. But the initiatives do not and cannot stop here. It involves a conscientious change in mindset in society, educating the young of the importance of protecting the environment and requiring the active participation of all stakeholders,” said Ravindran K., President of UMW Toyota Motor

He added that that the interests of both Toyota and UMWT have gone beyond the automotive realm to offset the effects the CO2 emissions. For example, UMWT continues to be at the helm of numerous environmental initiatives. For 20 years, it has organised the Toyota Eco Youth program to cultivating environment consciousness and innovation amongst the youth of the nation involving schools, secondary school students and teachers.

“The ultimate goal will not rest solely on vehicle electrification, but to achieve carbon neutrality and zero emissions on all fronts – from putting cleaner vehicles on the road and addressing manufacturing processes, to helping to create greater awareness for the protection of the environment,” said Mr. Ravindran.

Mr. Ravindran believes the introduction of Hybrid Electric technology will quickly transform the automotive landscape in Malaysia for Malaysians. “We hope that our endeavours to popularise tomorrow’s technology today through the mass introduction of Hybrid Electric Vehicles (HEV) will receive due support from the government in the pursuit of a full-scale realisation of vehicle electrification. We hope that the government will also consider UMW Toyota Motor’s efforts to be included in the National Low Carbon Mobility Blueprint alongside Battery Electric Vehicles which is in line with the government’s plans,” he added.

Toyota: “No customer is left behind” in quest for carbon neutrality

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