A few weeks ago, a Cabinet minister reeled off the names of some domestic policies regarding climate change and the automotive industry. He quoted these policies to underpin his position that Malaysia’s economic development was on the right path.
I was appalled. The policies he mentioned have long been overtaken by events. The National Automotive Policy for instance is outdated by its persistent protectionism of the national car project, even though the project is stifling the growth of the electric vehicle (EV) industry.
The national car has passed its infancy and is thriving as it comes to its 37th anniversary. Both national cars were born in the era of internal combustion engines.
China is now the world’s single biggest car manufacturer of electric and combustion types and is the source of technology for small EVs . It is disrupting Japan and Europe’s domination of the non-US automotive industry.
What this means is that EV’s are taking off in Thailand and Indonesia with investments from China and South Korea, while Malaysia is missing out because of outdated policies.
However, there has been a bit of a reprieve for Malaysia with the announcement early this month by China’s Great Wall Motor that it will invest in Malaysia to make its range of cars including its Ora Good Cat EV.
At the official launch in Kuala Lumpur, the company’s Asean president, Zhang Jiaming, said the Malaysian market will be developed according to the region’s new energy strategy. He said GWM’s range of retro fashion cars, urban SUVs, off-road SUVs and pickups will be launched to meet the demands of the market.
Cui Anqi, managing director of GWM Malaysia added: “We will continue to expand the Malaysian market by increasing investment in the country by carrying out localised assembly through cooperation with Go Auto Group.”
But Malaysian policymakers, be warned. GWM pulled out of India last month after two years of getting nowhere with its US$1 billion proposal to make EVs there.
Besides that, GWM has a car plant in Thailand and its Ora Good Cat EV is selling like hot cakes due to Thailand’s open market fuel price (about RM4 a litre of RON95).
What Malaysia must do is to update and adapt our motor industry policies as well as be inclusive of incumbent and new participants.
As one industry participant said: “Some of our road transport regulations and compliance standards are outdated and we need to modernise them especially in regards to mini EVs from China.
“Thailand, Indonesia and Vietnam are ahead because their authorities are on-the-ball with emerging trends and standards. I’ve noticed that mini EVs from China are exported to countries like Denmark, Italy and the US with small motor size from 15kW to 29 kW, and a maximum speed below 100 km/h.”
On another note about vehicle standards and the outdated standards in government agencies, I once participated in a Malaysia Automotive Institute (what is now known as the Malaysia Automotive Robotics and Internet of Things Institute or MARii) initiative to retrofit an old Proton with a second-hand battery pack and driveline from a write-off EV such as a Nissan Leaf or even a Tesla.
Our team found out strange things such as that Malaysia prohibited the import of second-hand power packs. We also found out that this regulation had been proposed by car companies which probably wanted to raise entry barriers.
Other regulations also were too restrictive for motor enthusiasts to retrofit classic cars and resurrect them as EVs. In practical terms, it would almost be like obtaining vehicle type approval at a cost of RM300,000 to RM400,000 each.
In stark contrast, the conversion of collectable and old cars into EVs is a growing industry in the UK, Europe and the US. Even Prince Harry attended his wedding in a Jaguar E-type Zero, a car made by Jaguar Land Rover using a classic E-type body and chassis with the driveline from the Jaguar i-Pace electric vehicle.
Before we go into complicated stuff like industrial policy, why not make it possible for workshops to retrofit classics and big bangers into EVs using battery and drivelines from Nissan Leaf, Tesla or other EVs from Europe and China?
Of course, these grassroot manufacturers would have to comply with modernised regulations and standards such as those in Britain.
In the UK, an EV conversion kit will cost from RM45,000, while conversion companies will turn an old Rolls Royce, Bentley, and other big displacement cars into EVs.
In the Philippines, thousands of skilled workers are employed in handcrafting the country’s unique Jeepneys. Here in Malaysia we have the opportunity to engage our skilled workforce into EV conversions with the attendant benefits of acquiring IT, software and mechatronic skills.
The long-term objective is to nurture the Malaysian automotive industry into a new era of electrification and create high value jobs for Malaysians rather than lose these talented workers to China, Thailand, and Indonesia. - FMT
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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