The Malaysian Govt recent announced the much awaited National Automotive Policy. This is the new policy to be introduced since 2009. It appears that nothing much has changed and protecting the local automotive industry has done nothing for improving the country's automotive industry.
The 2014 policy saw the removal of the tax exemption for imported Hybrid vehicles and the government back tracking on its pledge to remove the APs (approved permits) for importation of cars at the end of 2015. As expected the policy is geared toward protecting Proton and the companies linked to the Government leaving the man on the street to bear the high cost of car ownership.
During the announcement several top management executives from major car companies were seen cringing and make statements such as "Unbelievable!" due to their frustration. It is evident that the policy has only benefited a very select few and the rest are left to work within the framework. Frustrating as it may be there is no light at the end of the tunnel for the Malaysian automotive industry. The policies so far has yielded insignificant levels of investment from foreign car makers and many have opted to focus their investments in neighouring countries such as Thailand and Indonesia.
The recent KL International motorshow was a good example of the state of affairs for the Malaysian automotive industry. The government claims that they cannot lower the taxes of the cars due to the fact that the Government is in need of money. Heavily taxing the cars only causes more financial burden on the public and in a country where public transport is not well planned and inefficient buying a car is a necessity.
Now there is rumour that the government will revoke the fuel subsidy for people with a certain level of income and provide the subsidy for the poor. this is again open to abuse and cannot be adequately policed effectively.
Sunday, 26 January 2014
VW's reputation in Malaysia
Volkswagen did a great job in the last few years promoting its cars and its brand. Their market share increased significantly over the years and is the top selling German car brand in Malaysia. With the growth it naturally sounds good but the problem came when they did not put much emphasis on after sales. With more cars sold the number of problems also grew. Many were the lower powered engined cars with the dry clutch DSG transmission.
Of late Facebook has been the place where disgruntled owners have vented their frustration about the lack of support and service by VW centres. The cars are all sold with 5 years warranty with the warranty made up of 2 years manufacturer's warranty and the balance of the 3 years supported by Allianz insurance. The problems came when the owners made claims after 2 years of ownership and Allianz would drag their feet to honor the claims. There are also cases where the VW warranty is not honored when the customer supposedly missed the service or was late to service their car by 300km which in our opinion is ridiculous considering that scheduling a service will take 2 weeks and to tell the owner not to drive their car for 2 weeks fearing that their warranty will be void once the buffer mileage will be exceeded.
To makes matters worse the customer service crew at many of the VW service centers were not adequately trained to handle unhappy customers.
It appears that in the attempt to go for large volume sales VW has compromised on its quality and attention to detail. The number of complaints is mounting every month giving VW a bad reputation. This is quite surprising considering the VW should have known about the problems with the cars and put more emphasis on service and support. Once a customer has had a bad experience with a brand, they will unlikely return to buy another. We all know that it is hard enough to win a customer, it is even harder to retain a loyal customer.
Looking at the present situation, if VW does not step up its customer support and provide better after sales service, their honeymoon period of good sales will come to an end soon.
Of late Facebook has been the place where disgruntled owners have vented their frustration about the lack of support and service by VW centres. The cars are all sold with 5 years warranty with the warranty made up of 2 years manufacturer's warranty and the balance of the 3 years supported by Allianz insurance. The problems came when the owners made claims after 2 years of ownership and Allianz would drag their feet to honor the claims. There are also cases where the VW warranty is not honored when the customer supposedly missed the service or was late to service their car by 300km which in our opinion is ridiculous considering that scheduling a service will take 2 weeks and to tell the owner not to drive their car for 2 weeks fearing that their warranty will be void once the buffer mileage will be exceeded.
To makes matters worse the customer service crew at many of the VW service centers were not adequately trained to handle unhappy customers.
It appears that in the attempt to go for large volume sales VW has compromised on its quality and attention to detail. The number of complaints is mounting every month giving VW a bad reputation. This is quite surprising considering the VW should have known about the problems with the cars and put more emphasis on service and support. Once a customer has had a bad experience with a brand, they will unlikely return to buy another. We all know that it is hard enough to win a customer, it is even harder to retain a loyal customer.
Looking at the present situation, if VW does not step up its customer support and provide better after sales service, their honeymoon period of good sales will come to an end soon.
Monday, 13 January 2014
2014 Tokyo Autosalon
It is Autosalon season again and this year the show is as big as last year's! so many crazy tuned cars and so many bodykits on display. The show organizers did cut back on the number of Toyota GT86 and Subaru BRZ on display. A better variety of cars were on display with some serious bizarre looking vehicles which look totally unrecognizable.
As usual there were plenty of girls to grace the cars and also big collection of new wheels on display with a massive 32" set of wheels put on a Lexus GS model. Some of the cars were wrapped in extreme graphics and new textured wraps. It is amazing to see how creative some of the tuners get when they have unlimited budgets.
The up and coming tuner, Liberty Walk was on display with their ultra wide body Ferrari 458 and several other models. Subaru took the chance to display their new upcoming Levorg model which is similar to the upcoming WRX wagon. Not sure if Levorg is the name that will be used in Japan only but the car looks good nevertheless. It is definitely a big improvement over the previous Subaru models. Nissan also took the chance to display their new X-Trail and Skyline which also looks much better than previous models.
There were also American muscle cars on display such as the Hennessey Corvette C7 and the HRE Ford GT. Over the 3 days, the Autosalon easily attracted over 250,000 visitors cover all 11 halls. The show's support came from car makers which now recognize the Autosalon as a major automotive show that they cannot miss.
Many tuning companies and parts suppliers also displayed their product for all to see. Racing teams also took the opportunity to show their race cars for 2014.
As usual there were plenty of girls to grace the cars and also big collection of new wheels on display with a massive 32" set of wheels put on a Lexus GS model. Some of the cars were wrapped in extreme graphics and new textured wraps. It is amazing to see how creative some of the tuners get when they have unlimited budgets.
The up and coming tuner, Liberty Walk was on display with their ultra wide body Ferrari 458 and several other models. Subaru took the chance to display their new upcoming Levorg model which is similar to the upcoming WRX wagon. Not sure if Levorg is the name that will be used in Japan only but the car looks good nevertheless. It is definitely a big improvement over the previous Subaru models. Nissan also took the chance to display their new X-Trail and Skyline which also looks much better than previous models.
There were also American muscle cars on display such as the Hennessey Corvette C7 and the HRE Ford GT. Over the 3 days, the Autosalon easily attracted over 250,000 visitors cover all 11 halls. The show's support came from car makers which now recognize the Autosalon as a major automotive show that they cannot miss.
Many tuning companies and parts suppliers also displayed their product for all to see. Racing teams also took the opportunity to show their race cars for 2014.
Thursday, 2 January 2014
Motorshows in Asia
Motorshows are always fun and exciting events that show case new, future and current cars. The big named car makers will take the chance to display their technology and new concepts to tease the public on what will come soon. Of course we cannot forget the beautiful models that are also part of the motorshow.
In Asia the best motorshows to visit are Tokyo (because of all the new technology and numerous concepts on display), Thailand (being the Detroit of South East Asia), Shanghai (China car companies take the opportunity to show how far they have come and their new models due to be launched) and Korea (Kia and Hyundai have made great improvement in terms of design and technology it is worthwhile checking out their latest cars). These motorshows bring an element of excitement to the motoring industry. These shows are so popular that over one weekend over 100,000 visitors will flock to the shows.
On the opposite end of the scale, the worst shows to visit in Asia are the KL International Motorshow in Malaysia and the Singapore motorshow. Both of these shows are a complete waste of time as 30% of the major car makers are absent from the show leaving the event somewhat disappointing. Missing big names is one issue but showing mostly current models that are already sold in the showrooms really means that the visitors have nothing new to see at the show. To makes matters worst, the cars are locked and visitors are not permitted to open the doors to view the interior!
If you happen to be in Tokyo, Bangkok, Shanghai or Seoul during motorshow season, make sure you don't miss out and spend half a day to visit these shows. On the other hand if you happen to be in Kuala Lumpur and Singapore during Motorshow season.. don't bother wasting your money. you can see the same cars at car dealerships for free!
In Asia the best motorshows to visit are Tokyo (because of all the new technology and numerous concepts on display), Thailand (being the Detroit of South East Asia), Shanghai (China car companies take the opportunity to show how far they have come and their new models due to be launched) and Korea (Kia and Hyundai have made great improvement in terms of design and technology it is worthwhile checking out their latest cars). These motorshows bring an element of excitement to the motoring industry. These shows are so popular that over one weekend over 100,000 visitors will flock to the shows.
On the opposite end of the scale, the worst shows to visit in Asia are the KL International Motorshow in Malaysia and the Singapore motorshow. Both of these shows are a complete waste of time as 30% of the major car makers are absent from the show leaving the event somewhat disappointing. Missing big names is one issue but showing mostly current models that are already sold in the showrooms really means that the visitors have nothing new to see at the show. To makes matters worst, the cars are locked and visitors are not permitted to open the doors to view the interior!
If you happen to be in Tokyo, Bangkok, Shanghai or Seoul during motorshow season, make sure you don't miss out and spend half a day to visit these shows. On the other hand if you happen to be in Kuala Lumpur and Singapore during Motorshow season.. don't bother wasting your money. you can see the same cars at car dealerships for free!
Tuesday, 17 December 2013
evolution of Chinese made cars
China made cars are playing the catch up game and the rate which they are catching up is scaring other car companies in Japan and Korea. Recently Chery hired a top designer from Porsche to design their new car. They followed the route which Kia took by hiring the Audi top designer. The result is obvious the new Chery car looking European and with a modern look.
The car's appearance is no longer boring and square. The new design makes the car look sophisticated, elegant and modern. Kia enjoyed tremendous success doing this and Chery looks set to see more success in the near future.
Other China car companies have also invested a lot to play catch up by hiring German engineers to help develop engines and drivetrains. Great Wall Cars recently introduced their 1.5 litre turbo engine pushing out 150ps which is commendable for a first effort. The history of Great Wall Cars is relatively short in comparison with Proton and yet it took them less than 8 years before coming out with their very first turbo engine while Proton took over 20 years!
Big names such as Borg Warner, Getrag, Monroe, Bosch and Delphi are now heavily involved in China to develop cars with China car companies. The technology transfer and collaboration is moving at such as fast pace that with each passing motorshow, so many new models are hitting the showrooms. Each model looking better than the previous and more technology being used.
It won't be long before China cars will be able to give Hyundai and Kia a run for their money and soon after that the Japanese cars. China car companies are cash rich and are able to buy technology to close the gap. The next step is to see the improvement in build quality and reliability.
It still remains a mystery if China car companies will enter motorsports to develop their technology and build their brand but with the high sales figures in China domestic market alone, they may just need to keep buying technology to move forward. Motorsports and racing may just not be necessary.
The car's appearance is no longer boring and square. The new design makes the car look sophisticated, elegant and modern. Kia enjoyed tremendous success doing this and Chery looks set to see more success in the near future.
Other China car companies have also invested a lot to play catch up by hiring German engineers to help develop engines and drivetrains. Great Wall Cars recently introduced their 1.5 litre turbo engine pushing out 150ps which is commendable for a first effort. The history of Great Wall Cars is relatively short in comparison with Proton and yet it took them less than 8 years before coming out with their very first turbo engine while Proton took over 20 years!
Big names such as Borg Warner, Getrag, Monroe, Bosch and Delphi are now heavily involved in China to develop cars with China car companies. The technology transfer and collaboration is moving at such as fast pace that with each passing motorshow, so many new models are hitting the showrooms. Each model looking better than the previous and more technology being used.
It won't be long before China cars will be able to give Hyundai and Kia a run for their money and soon after that the Japanese cars. China car companies are cash rich and are able to buy technology to close the gap. The next step is to see the improvement in build quality and reliability.
It still remains a mystery if China car companies will enter motorsports to develop their technology and build their brand but with the high sales figures in China domestic market alone, they may just need to keep buying technology to move forward. Motorsports and racing may just not be necessary.
future of motorsports in Malaysia
The future of motorsports seem very bleak in Malaysia with numerous events calling it quits after 2013. The Super GT from Japan had its last event in 2013 with the organiser losing more than USD1 million, the Formula Drift Asia is also destined to end since the 2013 event was rained out and the organizer was not paid the sponsorship money causing the company to close down. The KL International motorshow also did not perform well with 6 car manufacturers missing from the event. Some of the reasons why the events have come to an end is to do with the cost of organizing the event where Sepang F1 track owner (SIC) charging a large sum for certain event making it not financially feasible for organizers to hold events that can make any profit.
Speedcity in the south of KL has also closed down bringing an end to a drift venue for grassroots drifters to practice and compete.
The Youth and Sport Ministry which is suppose to be in charge of motorsports has done nothing for motorsports. The KL Motopark which was suppose to be a scaled down race track meant for circuit racing and drifting had the ground breaking ceremony many years ago but nothing has happened since then. It is unsure if the project ground to a halt due to political reasons or someone has siphoned off the money.
Malaysia is in need of 2 more small tracks with about 3km in length that is suitable for touring car racing capacity. A track similar to that of Tsukuba in Japan will suffice and encourage the development of motorsports in Malaysia and also keep the street racers of the city streets. Motorsports fans are yearning for more events and would like to see the development of the motorsports industry. There is definitely no shortage of motorsports fans but due to limited venue and events, it seems like the future of motorsports is remain bleak for the foreseeable future.
Speedcity in the south of KL has also closed down bringing an end to a drift venue for grassroots drifters to practice and compete.
The Youth and Sport Ministry which is suppose to be in charge of motorsports has done nothing for motorsports. The KL Motopark which was suppose to be a scaled down race track meant for circuit racing and drifting had the ground breaking ceremony many years ago but nothing has happened since then. It is unsure if the project ground to a halt due to political reasons or someone has siphoned off the money.
Malaysia is in need of 2 more small tracks with about 3km in length that is suitable for touring car racing capacity. A track similar to that of Tsukuba in Japan will suffice and encourage the development of motorsports in Malaysia and also keep the street racers of the city streets. Motorsports fans are yearning for more events and would like to see the development of the motorsports industry. There is definitely no shortage of motorsports fans but due to limited venue and events, it seems like the future of motorsports is remain bleak for the foreseeable future.
Direction of the Automotive industry in Malaysia
The automotive industry in Malaysia looks almost certainly lost in the sense that the Malaysian govt has been procrastinating about their National Automotive Policy. When they first mooted the tax exemption for hybrid cars it opened pandora's box and a flurry of hybrid cars entered the country at much lower price due to the tax exemption. This of course meant that the govt earned less tax from these cars. The Malaysian Govt did not anticipate the sudden surge in sales for hybrid cars which affected the sales of local cars.
There is rumour that the govt will end this exemption for all hybrid cars and only allow locally assembled hybrid cars to enjoy the hybrid tax exemption. This means that only the Honda Jazz will benefit from the exemption. The sales of the locally made cars especially Proton has seen a decline as more and more Malaysians are shying away from buying Protons in search for better quality cars. Proton has not made any improvements and their latest Suprima S model only received lukewarm response.
The Govt is trying to make a balancing act by protecting Proton while trying to encourage investment from foreign car companies. The constantly changing automotive policy has left many car companies guessing and most has lost confidence in investing more than they should in Malaysia. The knock on effect of this minimal or no growth for the automotive industry in 2014. With the already high taxes imposed on cars and the constantly rising cost of living, it is unlikely that we will see any growth at all.
There is rumour that the govt will end this exemption for all hybrid cars and only allow locally assembled hybrid cars to enjoy the hybrid tax exemption. This means that only the Honda Jazz will benefit from the exemption. The sales of the locally made cars especially Proton has seen a decline as more and more Malaysians are shying away from buying Protons in search for better quality cars. Proton has not made any improvements and their latest Suprima S model only received lukewarm response.
The Govt is trying to make a balancing act by protecting Proton while trying to encourage investment from foreign car companies. The constantly changing automotive policy has left many car companies guessing and most has lost confidence in investing more than they should in Malaysia. The knock on effect of this minimal or no growth for the automotive industry in 2014. With the already high taxes imposed on cars and the constantly rising cost of living, it is unlikely that we will see any growth at all.
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