Driving in the UAE (United Arab Emirates) is an interesting experience. The roads there are by far the best in the world with ultra smooth highways and very well paved roads all around. The speed limits are also a little higher with some tolerance of up to 140km/h on some sections.
The fuel price is also incredibly cheap at UAE$1.71 per litre for Ron 95 gasoline. The cars there are also very cheap and you can easily pick up a VW Touarag for US$40k!! One would easily spot an exotic car any time of the day. If you would sit in front of the Movenpick hotel at Jumeira walk you would see a steady stream of Lambos, Ferraris, Corvettes, Rolls Royce, Aston Martins, Mercedes SLS, Mclarens and etc. What you can think of you can see it there.
It sounds like a motoring paradise where fuel is cheap and cars are cheap and good roads to drive on. One can even see a Ferrari or Lambo park out in the sun day after day as this is normal for them. Cars are cheap enough for them to do that. Most of the people dont care about fuel since it is so cheap. However the cheap fuel is about to end. Recently the Minister of Environment in UAE announced that they will float the fuel price to follow the rest of the world. This means that they will no longer enjoy very cheap fuel. As one would have guessed having such cheap fuel now many of the residence would buy big engine cars or gas guzzlers since it cost them so little to fuel up the car.
The aim of floating the fuel price is to pull it in line with the rest of the world and reduce wastage and protect their diminishing fuel supply. The oil supply will not last forever and it would be a matter of time before the oil runs out. The Minister of Environment also cited that air pollution is getting worst each year since there are so many cars in such a small country.
Wednesday, 29 July 2015
Friday, 26 June 2015
Frustrations of living in a country where car prices are ridiculous!
People who live in countries such as US, UAE, Great Britain, Germany, Japan and New Zealand enjoy cars as and when they wish because cars are just cheap! However in many other countries that slap ridiculous amounts of tax on cars the car lovers all suffer. All moan and groan about having to fork out substantially more than they should for cars. Countries such as Singapore where land area is very limited it is understandable why the Govt would slap heavy taxes on the cars as a means to control car population if not the country will juts become one massive car park.
Apart from Singapore countries such as Malaysia, Thailand, Indonesia, Brazil and Vietnam all slap massive taxes on cars often reaching as much as 300% making a simple car cost that would cost US$10,000 in US to well over US$30,000. To cap it all off the roads in Malaysia, Thailand, Indonesia, Vietnam are not exactly top notch. Even if the person had sufficient money to buy a nice sports car the road conditions would make it frustrating to drive on. Many of these countries have pot hole ridden roads and massive traffic problems. Public transportation is not efficient leading to many people needing to buy a car or motorcycle for transportation.
To top this all off race track facilities are also limited in these countries compared to those where cars are cheap. Japan, US, Germany and Great Britain has numerous race tracks scattered all over the country making it easy to get access to track driving. This in turn would push the motorsport industry forward as well as help develop the motoring industry as a whole.
The taxes collected from car sales have become such a huge tax revenue earner that these countries find it hard to do away with import taxes on cars. Malaysia for one has been postponing the call to reduce import taxes on cars for decades. Collecting over $2 billion annually is significant enough to justify continuing the imposition of this tax. To make matters worse some even introduce Excise duty which typically is considered to be a form of tax on controlled goods such as cigarettes, liquor or some restricted item. The excise duty is just a way for the Govt to further increase their tax revenue through car sales.
Apart from Singapore countries such as Malaysia, Thailand, Indonesia, Brazil and Vietnam all slap massive taxes on cars often reaching as much as 300% making a simple car cost that would cost US$10,000 in US to well over US$30,000. To cap it all off the roads in Malaysia, Thailand, Indonesia, Vietnam are not exactly top notch. Even if the person had sufficient money to buy a nice sports car the road conditions would make it frustrating to drive on. Many of these countries have pot hole ridden roads and massive traffic problems. Public transportation is not efficient leading to many people needing to buy a car or motorcycle for transportation.
To top this all off race track facilities are also limited in these countries compared to those where cars are cheap. Japan, US, Germany and Great Britain has numerous race tracks scattered all over the country making it easy to get access to track driving. This in turn would push the motorsport industry forward as well as help develop the motoring industry as a whole.
The taxes collected from car sales have become such a huge tax revenue earner that these countries find it hard to do away with import taxes on cars. Malaysia for one has been postponing the call to reduce import taxes on cars for decades. Collecting over $2 billion annually is significant enough to justify continuing the imposition of this tax. To make matters worse some even introduce Excise duty which typically is considered to be a form of tax on controlled goods such as cigarettes, liquor or some restricted item. The excise duty is just a way for the Govt to further increase their tax revenue through car sales.
Monday, 15 June 2015
Proton's collaboration with Suzuki
Proton started out in 1985 as a car maker that only knew how to assemble cars rather than build its own cars. It decided to try its hand at designing and building its own cars in 2000 and it failed miserably with the models being rough, poor fuel consumption, jerky and of low quality. Proton went back to assembling cars again with Mitsubishi and Honda. Now looks like Proton has given up on building its own cars and gone full steam with assembling cars with it recent collaboration with Suzuki.
From the images that have leaked out Proton is aiming at fighting Perodua head on with a Suzuki model that is similar in size with the Perodua Myvi. Proton's engineering team appears to be at least 15 years behind and can only retool their equipment to assemble cars. The design and development team seem to be lost and going the route of being an assembler rather than a proper car maker is definitely more suitable for Proton. Without the right expertise to develop its own cars it isn't so bad to be a car assembler.
Companies like Luxgen in Taiwan was a car assembling company which in the last 5 years decided to develop its own model. It took a while to gain acceptance but they took the knowledge they gained from assembling cars to develop their own in-house models. So far from what has been seen in motorshows and even reviews in Taiwan car magazines the Luxgen models are quickly catching up with the Korean car makers which is quite an achievement since its car building history is not every extensive. Unfortunately despite the long history that Proton has had, it has achieved practically nothing. They cannot compete on the international level and even in the domestic market it has fallen behind Honda and Toyota for sales volume. The walk towards the grave is getting shorter by the year for Proton. The Malaysian public cannot accept another bail out for Proton.
From the images that have leaked out Proton is aiming at fighting Perodua head on with a Suzuki model that is similar in size with the Perodua Myvi. Proton's engineering team appears to be at least 15 years behind and can only retool their equipment to assemble cars. The design and development team seem to be lost and going the route of being an assembler rather than a proper car maker is definitely more suitable for Proton. Without the right expertise to develop its own cars it isn't so bad to be a car assembler.
Companies like Luxgen in Taiwan was a car assembling company which in the last 5 years decided to develop its own model. It took a while to gain acceptance but they took the knowledge they gained from assembling cars to develop their own in-house models. So far from what has been seen in motorshows and even reviews in Taiwan car magazines the Luxgen models are quickly catching up with the Korean car makers which is quite an achievement since its car building history is not every extensive. Unfortunately despite the long history that Proton has had, it has achieved practically nothing. They cannot compete on the international level and even in the domestic market it has fallen behind Honda and Toyota for sales volume. The walk towards the grave is getting shorter by the year for Proton. The Malaysian public cannot accept another bail out for Proton.
Thursday, 28 May 2015
sexy promoters automotive shows
It is quite common these days to see automakers using sexy models at their car launch or at motorshows. I often question whether this is to attract the guys to come to the event to see the girls or the cars! The girls will no doubt attract a certain number of guys but the question is whether the girls will over shadow the car or the product at the event. China has banned the use of sexily dressed models at motorshows because it was getting out of hand at one point where the models were barely wearing anything or the clothing they wore were just too revealing.
A classy model at a car show is perfectly acceptable as it may be a nice touch when it comes to take photographs. If the sexy model is used to promote products I seriously doubt that the company promoting the product is really getting the real attention that they are after since the sexy models only attract the guys interested in taking pictures of the girls rather than the product itself. I have personally seen cases where the crowd will follow the girls and when the girls leave the booth for a break or walk to another location, the crowd follows leaving the booth with little or no visitors. The right attention is not there. There were even cases where the booths that did not hire any models literally had no attention or visitors at all! the crowd was there to just look at the girls.
The companies who use models to promote their product should really think whether they want real visitors who are seriously interested in their products or perverts who want to only see the girls?!
For branding purposes using a sexy model will definitely help since many pictures of the girls with the brand or logo will be taken and shared on social media or in print publications. The brand name can easily be seen circulating around.
A classy model at a car show is perfectly acceptable as it may be a nice touch when it comes to take photographs. If the sexy model is used to promote products I seriously doubt that the company promoting the product is really getting the real attention that they are after since the sexy models only attract the guys interested in taking pictures of the girls rather than the product itself. I have personally seen cases where the crowd will follow the girls and when the girls leave the booth for a break or walk to another location, the crowd follows leaving the booth with little or no visitors. The right attention is not there. There were even cases where the booths that did not hire any models literally had no attention or visitors at all! the crowd was there to just look at the girls.
The companies who use models to promote their product should really think whether they want real visitors who are seriously interested in their products or perverts who want to only see the girls?!
For branding purposes using a sexy model will definitely help since many pictures of the girls with the brand or logo will be taken and shared on social media or in print publications. The brand name can easily be seen circulating around.
Wednesday, 27 May 2015
YEMA Motors china
During one of my business trips to China I was invited to visit a local car factory. The factory is a second tier Chinese automaker by the name of YEMA Motors. Most of us outside of China wouldn't have heard of this company but apparently it has been manufacturing cars for 25 years! The car is nothing to shout about since they copy the designs of Audi, VW, Ford, Toyota and Subaru.
It was my first visit to a second tier China car factory. The manufacturing facilities are nowhere near as advanced as the big boys like BYD or SAIC. Design wise they look poor copies of Audi's Q7, VW Touarag, Subaru Forester, Toyota Altis, Ford Fiesta and Toyota RAV4. I did not have a chance to test drive their cars but upon inspection of the interior it really does look like it was designed 20 years ago. The plastics quality is poor and so is the finishing of the car. The exterior door panels were not perfectly straight as one can easily spot the wavy lines on the panels itself. Much of the assembly process is done by hand instead of using robotics. The factory is not exactly small but it is not big either.
During the factory tour one of the senior managers were explaining about the company's history and future direction. their aim is to go fully electric and introduce a whole range of models using only electric power. They currently make electric buses which are being used by some municipal governments in China. They took the idea from Tesla and created a modular system whereby additional battery packs can be added for more range or more power. They were claiming good driving range for their electric cars however I have some reservations about it since their emphasis is not in quality rather than lower price.
YEMA claims that they are currently exporting their cars however I suspect that their cars would only be sold in 3rd world countries or smaller developing countries since automotive crash testing may not be mandatory in these countries. I question YEMA's car if they would pass NCAP or other European or Japanese crash tests.
We were not provided a tour of their R&D centre so it is hard to gauge how good is their R&D resources. They did bring out a VW Touarag looking model that is 100% electric. The car is still a prototype but they did try to take visitors a on joyride to let them feel this new car. It is a positive step for the company but in terms of design development they have a long way to go before they can compete with the bigger tier 1 China car companies.
China's automotive market is big enough to have numerous car makers with each carving out their own market segment. Unfortunately nearly all aim only for cheap cars with low quality materials and old engines. It is about time they followed Hyundai and Kia to engage foreign experts to accelerate their design and development of the cars.
It was my first visit to a second tier China car factory. The manufacturing facilities are nowhere near as advanced as the big boys like BYD or SAIC. Design wise they look poor copies of Audi's Q7, VW Touarag, Subaru Forester, Toyota Altis, Ford Fiesta and Toyota RAV4. I did not have a chance to test drive their cars but upon inspection of the interior it really does look like it was designed 20 years ago. The plastics quality is poor and so is the finishing of the car. The exterior door panels were not perfectly straight as one can easily spot the wavy lines on the panels itself. Much of the assembly process is done by hand instead of using robotics. The factory is not exactly small but it is not big either.
During the factory tour one of the senior managers were explaining about the company's history and future direction. their aim is to go fully electric and introduce a whole range of models using only electric power. They currently make electric buses which are being used by some municipal governments in China. They took the idea from Tesla and created a modular system whereby additional battery packs can be added for more range or more power. They were claiming good driving range for their electric cars however I have some reservations about it since their emphasis is not in quality rather than lower price.
YEMA claims that they are currently exporting their cars however I suspect that their cars would only be sold in 3rd world countries or smaller developing countries since automotive crash testing may not be mandatory in these countries. I question YEMA's car if they would pass NCAP or other European or Japanese crash tests.
We were not provided a tour of their R&D centre so it is hard to gauge how good is their R&D resources. They did bring out a VW Touarag looking model that is 100% electric. The car is still a prototype but they did try to take visitors a on joyride to let them feel this new car. It is a positive step for the company but in terms of design development they have a long way to go before they can compete with the bigger tier 1 China car companies.
China's automotive market is big enough to have numerous car makers with each carving out their own market segment. Unfortunately nearly all aim only for cheap cars with low quality materials and old engines. It is about time they followed Hyundai and Kia to engage foreign experts to accelerate their design and development of the cars.
Wednesday, 20 May 2015
Mazda vs the other Japanese car companie
Mazda may be one of the smallest car makers in Japan and in terms of financial and research resources they are probably the smallest. Mazda has survived this long due to their different approach in car design. They have been known to create some very good looking cars but never did have the engine technology to match. In the recent years where they launched the SkyActiv engine and re-worked the body of the car models, the results have been positive. Their sales numbers are up and they are able to attract a wider group of buyers compared to previous generations of cars.
The new line up of Mazda 6, 3 and 2 have gained momentum and many young buyers are now considering Mazda over traditional brands like Toyota and Honda. It is a good thing since Mazda has adopted the Zoom Zoom theme for the last 10 years and now with the current evolution of the models the cars have the looks to match. The new models' interior has also broken away from the traditional Japanese styled interiors. The new Mazda 2 and 3 have a European look to it, similar to Audi and BMW. It is also packed with features and functionality that are not found in competing models such as the Honda Civic, Toyota Corolla, Honda City or the Toyota Vios. Pegging it at very similar prices the Mazda models are now a serious contender and the fresh look will attract buyers wanting something different rather than the run of the mill Toyota or Honda.
In this day and age where technology and design themes move so quickly, Mazda did the right thing by thinking outside the box in terms of design. It is little wonder why Toyota just signed an agreement to collaborate with Mazda. Toyota needs an injection of youth and fresh design while Mazda needed access to more R&D resources.
Take a look at the current designs of the Mazda 2 and 3 and you will see what I mean.
The new line up of Mazda 6, 3 and 2 have gained momentum and many young buyers are now considering Mazda over traditional brands like Toyota and Honda. It is a good thing since Mazda has adopted the Zoom Zoom theme for the last 10 years and now with the current evolution of the models the cars have the looks to match. The new models' interior has also broken away from the traditional Japanese styled interiors. The new Mazda 2 and 3 have a European look to it, similar to Audi and BMW. It is also packed with features and functionality that are not found in competing models such as the Honda Civic, Toyota Corolla, Honda City or the Toyota Vios. Pegging it at very similar prices the Mazda models are now a serious contender and the fresh look will attract buyers wanting something different rather than the run of the mill Toyota or Honda.
In this day and age where technology and design themes move so quickly, Mazda did the right thing by thinking outside the box in terms of design. It is little wonder why Toyota just signed an agreement to collaborate with Mazda. Toyota needs an injection of youth and fresh design while Mazda needed access to more R&D resources.
Take a look at the current designs of the Mazda 2 and 3 and you will see what I mean.
Friday, 8 May 2015
car companies that defy convention
There are two car companies that I personally admire the most for their approach to car making. Unlike typical large car companies that makes cars by the hundreds of thousands and use parts that are shared with more than 8 models to keep costs low and the cars are made for the masses without passion.
Tesla and Koenigsegg are the only car companies in the world that shake up the automotive world with their ingenuity and forward thinking.
Tesla is by far the best electric car in the world with state-of-the-art technology that even main stream car companies that are flush with cash struggle to come close to. The Tesla cars are so well designed that they are unlikely to be called old fashion in the next 5 years. The cars are designed to allow in-model evolution where wireless updates can be carried out periodically to improve the car's battery life, extend the driving range, improve performance, fix bugs and all functions to on-board control system. This is truly forward thinking. The cars did have bug initially which have gradually been ironed out. As with all other cars that roll out, the first few years will see the car companies rectifying bugs in the car. The amazing thing about Tesla is that it's designed is far beyond anything BMW, Porsche or even Toyota is able to follow. The Tesla is also able to out drag powerful American muscle cars on a drag strip and yet drive home in comfort. Tesla is now making its way into emerging markets such as China to grow its sales volume. It may not have turned a profit yet but it will get there as more people come to accept its technology.
Koenigsegg is on the other extreme end of the scale where Christian von Koenigsegg spares no expense to develop his hypercars to be the best in the world. His unrivaled passion to be the best and produce the best has won him many admirers and respect from the automotive industry. Koenigsegg was the first company to make and use carbon fibre wheels and also 3D print their own turbo. This is totally unheard of. Koenigsegg also broke convention by redesigning the car's door and even transmission system. He believed that conventional may not be the best so we he designed it to suit his purpose. He was willing to explore the usage of new materials and new manufacturing techniques to make things better. The Koenigsegg car may be one of the most expensive in the world but those who are able to afford one knows that they are buying passion, innovation and creativity. It like having a bespoke suit made by the best tailor using the best materials possible sparing no expense.
Both these companies are not big in comparison to General Motors, Toyota and VAG group. The resources at their disposal is far smaller than any of these giants.
Tesla and Koenigsegg are the only car companies in the world that shake up the automotive world with their ingenuity and forward thinking.
Tesla is by far the best electric car in the world with state-of-the-art technology that even main stream car companies that are flush with cash struggle to come close to. The Tesla cars are so well designed that they are unlikely to be called old fashion in the next 5 years. The cars are designed to allow in-model evolution where wireless updates can be carried out periodically to improve the car's battery life, extend the driving range, improve performance, fix bugs and all functions to on-board control system. This is truly forward thinking. The cars did have bug initially which have gradually been ironed out. As with all other cars that roll out, the first few years will see the car companies rectifying bugs in the car. The amazing thing about Tesla is that it's designed is far beyond anything BMW, Porsche or even Toyota is able to follow. The Tesla is also able to out drag powerful American muscle cars on a drag strip and yet drive home in comfort. Tesla is now making its way into emerging markets such as China to grow its sales volume. It may not have turned a profit yet but it will get there as more people come to accept its technology.
Koenigsegg is on the other extreme end of the scale where Christian von Koenigsegg spares no expense to develop his hypercars to be the best in the world. His unrivaled passion to be the best and produce the best has won him many admirers and respect from the automotive industry. Koenigsegg was the first company to make and use carbon fibre wheels and also 3D print their own turbo. This is totally unheard of. Koenigsegg also broke convention by redesigning the car's door and even transmission system. He believed that conventional may not be the best so we he designed it to suit his purpose. He was willing to explore the usage of new materials and new manufacturing techniques to make things better. The Koenigsegg car may be one of the most expensive in the world but those who are able to afford one knows that they are buying passion, innovation and creativity. It like having a bespoke suit made by the best tailor using the best materials possible sparing no expense.
Both these companies are not big in comparison to General Motors, Toyota and VAG group. The resources at their disposal is far smaller than any of these giants.
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