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local assembly

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It’s been just about 14 months since the Proton X70 was launched, during which time over 29,000 units have been delivered throughout Malaysia. The strong and positive response to the model has rejuvenated Proton, which has Geely as its partner, as well as brought back respect for the company from Malaysians. In retrospect, perhaps Proton should have found a partner earlier but being a national carmaker, it was important that anyone who partners Proton would need to be the ‘correct fit, as Proton Chairman Dato’ Sri Syed Faisal Albar put it some years ago when DRB-HICOM was looking for a partner.

The speed at which the X70 was brought to the market was impressive although it must be said that the development and engineering work had all already been done earlier for the Geely Boyue. It was not as time-consuming and Azlan Othman and his team at Proton Design ‘Malaysianised’ it with styling cues that made reference to local culture and landscape. Of course, it still required an engineering program since there was no righthand drive version of the Boyue.

Launch in 2018
Launch of the Proton X70 in December 2018

Not wanting to waste time, a decision was made to build the SUV at a Geely factory in China first while renovating the factory at Tg. Malim in Perak. It needed changes and extensions to accommodate planned growth as well as a significant improvement in quality, something which had contributed to the brand’s downturn.

Geely would probably have preferred to keep building the vehicles in China where there would be economies of scale but understanding the aspirations of the Malaysian government to develop the domestic auto industry, it was agreeable to assembling the X70 here with a plan of making Malaysia a production hub for righthand drive models.

As the renovation works, costing RM1.2 billion, were completed, trial production of 130 units began in October 2019 alongside lines for the Iriz and Persona. Well aware that Malaysian buyers were skeptical of Made-in-Malaysia quality, much attention was put into quality control and ensuring that the locally-assembled or CKD (completely knocked down) X70 would be as good as the one that came from China. Proton acknowledged that the quality score of its products compared to other brands in the Geely Group was lower but had improved greatly with guidance and assistance from its partner.

2020 Proton X70

And so today sees the CKD X70 being officially launched, and presumably ending the imports. According to Dr. Li Chunrong, CEO of Proton, the next model – which will be the X50 – will not have the same approach; local assembly will be done from the start, perhaps by the end of this year.

14 months is a rather short time in the market and with the looks of the X70 still fresh and appealing, the focus was on adding value to the product as well as addressing issues which owners complained about. The launch of the CKD model provided a good opportunity to make the changes and offer a product that would be better than the imported one.

Local assembly = lower prices
There are 4 variants to choose from – Standard, Executive, Premium and Premium X. All come only with 2WD (front-wheel drive) with no AWD variant. Meeting expectations that a locally-assembled model should be cheaper, the CKD X70 in Standard spec is priced at RM94,800 and that is RM5,000 less than the imported 2019 model. The Executive is also RM3,000 cheaper at RM106,800, while the Premium version which sold at RM123,800 last year is now RM119,800 – RM4,000 lower. the top-of-the-line Premium X is priced RM3,000 more than the Premium and you get a panoramic sunroof for the extra money. By Proton’s calculations, the total value added ranges from RM11,640 to RM13,140 with customers saving between 9% and 13%, depending on the variant. And as with the imported model, the prices are the same for Peninsular and East Malaysia.

PRICE COMPARISON
On-the-road prices (excluding insurance) for private registration in Peninsular and East Malaysia.

Every version comes with a 5-year unlimited mileage warranty, a 5-year data package (1GB/month), free labour for scheduled maintenance (first 5 times) and for the first 3,000 X70 buyers, Proton is also throwing in an additional 4GB/month data package along with a package of accessories worth RM2,000. Customers who take their H-P financing from Proton’s partners can enjoy low interest rates as well as premium insurance coverage.

Until March 15, 2020, Proton is also having an Online Flash Booking offer for just RM99 (terms and conditions apply).

What’s new?
If you live in Malaysia, you will already know what the X70 looks like. As mentioned earlier, over 29,000 units on roads and in homes all over the country. Right off, we can tell you that there are no changes to the exterior and interior styling. The only exterior ‘change’ is the addition of a new colour choice – Space Grey – which joins the existing range of 5 colours.

 

2020 Proton X70
New Proton logo, introduced last September, is used for the 2020 X70 (previous logo design shown in inset on top left).

2020 Proton X70

While there are small improvements all over the vehicle to make it better, there are 5 which are significant and notable. The first is the engine which is still the 1.8-litre TGDI petrol engine (no, it is not a Volvo engine, as some people think) but retuned to give 15 Nm more torque (300 Nm) with power still at 184 ps. The extra torque improves 0 – 100 km/h acceleration by 1 second (9.5 seconds vs 10.5 seconds) which probably doesn’t sound like much but should prove useful when overtaking. The retuning has also made the engine less thirsty with a significant 13% reduction to 13.2 kms/litre, it is claimed.

Besides the retuning, what has also helped in increasing fuel efficiency and performance is the switch to a dual-clutch transmission, referred to as 7DCT. You may have heard bad things about fuel-clutch transmissions (of other brands) but those were the early generation and Geely would certainly have studied what the problems were and designed its DCT to be problem-free. Besides, the 7DCT is a wet-clutch type and the problems were with DCTs having a dry clutch.

2020 Proton X70

2020 Proton X70

The 7DCT in the X70 has shift-by-wire control, which means that electronic signals execute the changes instead of a cable. This enables shifts to be quicker and smoother, complementing the inherent benefits of the dual-clutch concept. The driver can choose from 3 driving modes and also shift manually but there are no paddle shifters.

The engine and 7DCT come from Geely’s factory in China already assembled, which is also the case with many locally-assembled models of other brands. It is likely that engines may also be assembled here later on if the production volume rises and justifies additional investment in an engine assembly plant.

New/improved comfort and convenience features
Next on the list would be comfort and convenience features, starting with ventilated front seats. This is a feature that is usually found on premium luxury models and is still rare at this price level. There are fans inside the seats which can be set at three different speeds. With air blowing upwards, things should be cooler on hot days. Presumably, Proton has omitted the HOT mode which is often found on imported models as they are also intended for markets where there is cold weather.

2020 Proton X70

2020 Proton X70

The fixed angle of the rear seat backrest was something owners (or rather their passengers) complained about. It’s not something we would have noticed as we spend most of the time testing the car from the driver’s seat. But Proton heard about the dissatisfaction and decided to make it possible to set the backrest at 2 angles over a range of 27 degrees to 32 degrees. As the backrest is divided (60:40), the left and right sides can be separated adjusted.

Another high-end feature which has been added is the powered tailgate with automatic opening (from Executive variant upwards). A sensor under the bumper will detect a foot and unlock/raise the tailgate. It’s a feature which is really useful when both hands are carrying bags or other items.

2020 Proton X70

Other specs maintained
The prices are lower and Proton has even improved the value of the X70 with new and improved features but without taking away what it already had – which is a lot of good stuff. All variants are offered with the Integrated Cockpit Information System (GKUI) system via an 8-inch Android based touchscreen interface. With an embedded eSIM card for internet connectivity, the system can provide online music streaming, GPS navigation and weather forecasts.

Proton X70

2020 Proton X70

2020 Proton X70

It also has voice recognition and the Proton Link app which allows owners to stay connected to their vehicle via their mobile device. The app and creating a driving profile based on distance travelled, fuel economy and journey times while keeping them informed of service intervals.

5-star safety
The X70 has been tested by ASEAN NCAP and scored the maximum of 5 stars. That’s not surprising since it has a very extensive list of safety features and systems. Of note is the 360 Camera (Executive, Premium and Premium X variants) which gives the driver an all-round view to aid parking. On the Premium and Premium X variants, there’s also a Tyre Pressure Monitoring System.

2020 Proton X70

The Advanced Driver Assistance System (ADAS) suite is also standard on the two Premium variants. This provides Autonomous Emergency Braking, Forward Collision Warning, Adaptive Cruise Control, Lane Departure Warning, Blind Spot Information System, Door Opening Warning System, and Intelligent High Beam Control.

Visit www.proton.com to locate a showroom where you can view, test-drive and purchase the new 2020 X70.

First Made-in-Malaysia Proton X70 officially rolls out at Tg. Malim factory

PISTON.MY

 

Following the visit of Prime Minister Tun Dr. Mahathir Mohamad to Pakistan earlier this year where he gifted the Prime Minister of Pakistan a Proton X70, the SUV has now been delivered to the government of Pakistan.

Proton X70

To date, over 26,000 units of the X70 have been delivered in the domestic market and exports are starting as well. In the case of Pakistan, plans were finalised in March this year to build an assembly plant that will be owned and operated by ALHAJ Automotive, Proton’s business partner there. Vehicle manufacturing is not a new activity for the ALHAJ Group as it has a subsidiary which has been producing FAW vehicles for a number of years.

Production is targeted to begin in 2021 with the X70 as the first of several models that will be sold in Pakistan. The long-term goal is to sell 400,000 vehicles by 2027. Just as in Malaysia, assembling its vehicles locally will allow Proton to have more attractive pricing as duties are lower for vehicles assembled in the country.

Proton Tg Malim
Parts for the X70 will be sent from Proton’s Tg. Malim factory in completely knocked-down (CKD) packs for assembly at the ALHAJ Automotive plant in Pakistan.

The brand new assembly plant will be located in Karachi, Pakistan’s industrial and financial centre. The initial investment will be US$30 million (around RM124.3 million) and 2,000 direct employment opportunities are expected to be created in its first 3 years of operations. It is estimated that a further 20,000 indirect jobs will also be created as a result of the new plant being commissioned.

“Proton sees a lot of potential in Pakistan and as Malaysia is the only Muslim country to have its own automotive brand, both our countries are natural partners who have so much to share with each other. The Proton X70 has won several awards at home and we hope that eventually, it can accomplish the same feats when it arrives here,” said Mohd Khalid Yusof, Proton’s Director of Investment and Promotion.

First Made-in-Malaysia Proton X70 officially rolls out at Tg. Malim factory

PISTON.MY

The latest JD Power Initial Quality Study (IQS) for Malaysia which provides insights into the problems faced by owners of new vehicles shows that they are experiencing fewer problems than in 2018. This is largely attributed to a decline in manufacturing-related issues and prevailing problems are nearly equally split between design and manufacturing categories.

Initial quality measures the number of problems experienced per 100 vehicles (PP100) during the first two to six months of ownership, with a lower count reflecting higher quality. In this year’s study, the industry average decreased to 85 PP100, from 89 PP100 in 2018.

Vehicle assembly

The study showed that the share of manufacturing-related issues has been on the decline over the past 3 years, falling to 51% in 2019 from 74% in 2016. The majority of the reduction from last year related to noise aspects, such as wind noise (-1.7 PP100); abnormal suspension noise (-1.1 PP100); seat noise (-0.9 PP100); abnormal transmission noise (-0.7 PP100); and other interior storage compartments noises (-0.3 PP100).

One-third of issues relate to noise
That said, noise-related issues accounted for 36% of all manufacturing issues identified by owners this year. On average, the overall rating on quality and reliability of new vehicle is lower among owners who reported such noise-related manufacturing issues than those who did not (7.3 and 8.2 respectively on a 10-point scale). Interestingly, engineers are some car companies have told PISTON.MY that Malaysians seem to have the ‘most sensitive’ ears as complaints about noise tend to be higher than from motorists in other countries!

“Vehicle owners continue to be sensitive to noise-related problems, which strongly affect their overall perception of the vehicle’s quality,” said E-Ling Cheah, Country Manager for Malaysia at J.D. Power. “Given the heightened customer sensitivity around buzz, squeak, rattle and wind noises, manufacturers need to not only improve their manufacturing processes but also work upstream to review and redefine vehicle design guidelines to avoid such issues surfacing early in the ownership cycle.”

JD Power 2019 IQS Malaysia

Some key findings of the 2019 study
Among the top 5 problems, 4 were similar to the top 5 in 2018. Excessive wind noise (5.9 PP100) and excessive road noise (2.9 PP100) continued to be the top two most-cited problems. “Built-in Bluetooth Mobile Phone/Device Has Frequent Pairing/Connectivity Issues” became the third most reported problem (2.7 PP100), up from fifth last year (2.5 PP100). Radio problems were fourth this year (2.0 PP100).

Younger car owners cited more problems when responding. Those under 35 years old (57%) indicated more problems than those 35 years or older (91 PP100 vs. 73 PP100, respectively). Younger car owners cited more problems in the features/controls/displays (+4.6 PP100) as well as vehicle interior (+4.5 PP100) categories. Perhaps they have more sensitive hearing?

Perodua

Among new vehicle owners who did not indicate any problems, 49% said they “definitely will” recommend their brand and model to friends or relatives, compared with 37% for those who had encountered at least one problem with their vehicle. One-third of new vehicle owners who did not experience any problems with their vehicle said they “definitely will” purchase a vehicle from the same brand the next time, compared with 26% of those who experienced at least one problem.

The J.D. Power 2019 Malaysia Initial Quality Study was based on responses from 1,904 new vehicle owners who purchased their vehicles between July 2018 and August 2019. The study, conducted between March and October 2019, included 50 passenger car, pick-up and utility vehicle models of 12 brands.

No more studies in ASEAN after 2019
JD Power has been conducting a series of three studies annually for the past 17 years but will no longer do so after this year. Reorganization sees the regional office in Singapore, which was responsible for the Malaysian market, shutting down. The company, founded in 1968, will focus on business activities in China and Japan from 2020 onwards.

PISTON.MY

BHPetrol

Local assembly of vehicles has been going on since the mid-1960s when the government offered incentives to carmakers to build factories and assemble their vehicles in Malaysia, or have the vehicles assembled under contract by other parties. The move was to put Malaysia on the path towards industrialisation and the auto industry was to serve as a catalyst, as it had in countries like Japan and Germany.

From a handful of factories in the late 1960s, mainly in Selangor and Johor, the network of assembly plants spread across the country to states like Pahang and Perak, and even East Malaysia. The number of factories has risen and fallen as market conditions have changed over the past 50 years, and there are 22 active plants today which collectively produced  380,940 units of passenger and commercial vehicles during the first 8 months of this year.

From the start, the government encouraged the sourcing of parts locally as well to develop the auto industry in a comprehensive way. Incentives were also given for using more local parts as well as for investments made to grow local assembly. However, where exports are concerned, Malaysia has not been as strong as Thailand and Indonesia and it is only in the past decade that a few carmakers have started to use Malaysian plants as regional production hubs for some models.

Mazda Kulim Plant

Assembly plants in Malaysia

HICOM
Aerial view of HICOM Automotive Manufacturers (Malaysia) in Pekan, Pahang. Brands such as Isuzu, Volkswagen, Mercedes-Benz, Mitsubishi FUSO and DEFTECH assemble their products at the complex.

PISTON.MY

Although many carmakers had prototypes running with hybrid powertrains consisting of an electric motor and a small internal combustion engine, Honda was among the first to mass-produce such cars and popularize them. Its first model, launched in 1999, was the Insight, a futuristic-looking 2-seater model that showed how the hybrid powertrain could reduce fuel consumption as well as emissions.

From then on, Honda kept improving its hybrid technology as well as working hard to make hybrid cars more affordable. Moving hybrid powertrains into mainstream models would boost volumes, enabling economies of scale that would push costs down and make hybrid cars cheaper for even more people to buy. Today, after 20 years, that objective has been pretty much achieved and hybrid powertrains are no longer a novelty or add significantly to the cost (although the battery pack is still a high cost).

The first hybrid model introduced in Malaysia by Honda was the Civic Hybrid in 2004.

Civic Hybrid was first model introduced
In Malaysia, due to the high import duties for completely built-up (CBU) models, hybrid models were expensive. The early ones were estimated to cost close to RM200,000, which would be very unattractive for anyone to consider. However, in 2004, Honda Malaysia made a special effort to introduce the technology in Malaysia and managed to get the price down to RM118,888 for the Civic Hybrid after negotiations with the government. The company also donated two units of the model to the Malaysian police force.

8 years later, Honda Malaysia made the decision to assemble a hybrid model locally at its own factory in Melaka. The timing coincided with the government’s offer to exempt hybrids and electric vehicles from import tax and excise duties between 2011 and 2013. Honda Malaysia chose the Jazz Hybrid which became the first locally-assembled hybrid model to be sold in Malaysia when it was launched in 2012.

Roll-out of the first locally-assembled hybrid model in Malaysia at Honda’s factory in Melaka took place in 2012.

RM4,900 less than CBU model
The locally-assembled version of the Jazz Hybrid was priced at RM89,900, insurance included, which was RM4,900 less than the CBU model that had been sold a year earlier. Honda Malaysia’s CEO & MD at that time, Yoichiro Ueno, remarked that it was unusual for a hybrid variant to be cheaper than its conventional equivalent and this only occurred in Malaysia due to the tax exemption.

Yesterday, Honda Malaysia delivered its 10,000th locally-assembled hybrid model to a customer in Kuantan, Pahang. It was a white City Hybrid purchased from Macinda Auto Sdn. Bhd by Saddam Hassan Bin Abdul Salim.

Malaysia is the only country outside Japan where the Honda hybrid powertrains use an intelligent Dual-Clutch Drive (i-DCD).

Jazz Hybrid accounts for 60% of sales
According to Honda Malaysia, the Jazz Hybrid accounts for about 60% of the 10,000 units on the road, while the City Hybrid accounts for about 34%. The remaining numbers are made up by the HR-V Hybrid, a recent addition to the line-up.

“This year marks the 15th year since Honda introduced Hybrid technology in Malaysia. Starting with the Integrated Motor Assist (IMA) technology to the intelligent Dual-Clutch Drive (i-DCD), Honda continues to focus on introducing Next Generation Advanced Technology innovations to the Malaysian market,” said Honda Malaysia’s President & COO, Sarly Adle Sarkum.

“I am delighted to witness the positive acceptance of Malaysians towards Honda Hybrid vehicles. Our line-up of Hybrid models cater to the different needs and lifestyle of our customers. We are honoured to have reached this 10,000 units of Honda CKD Hybrid sales which is a significant achievement as we have not only offered advanced Japanese technology but also the fun-to-drive element while maintaining its affordability.” he added.

Honda’s locally-assembled hybrid models currently consist of the City, HR-V and Jazz.

To locate a showroom in Malaysia to view or test-drive a Honda hybrid model, visit www.honda.com.my.

Click here for other PISTON.MY articles about Honda.

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