Frost and Sullivan sees 4.5pc growth in car sales

By Asrul Hadi Abdullah Sani

KUALA LUMPUR, Jan 14 — Frost and Sullivan has predicted a 4.5 per cent growth for automotive sales this year and expects the country’s total industry volume (TIV) to rebound with a “historic high” of 555,000 units, due to the projected economic recovery and improved consumer confidence for 2010.

Kavan Mukhtyar, partner and head of the Automotive and Transportation Practice, Asia Pacific at Frost and Sullivan, believes that the main thrust of the automotive recovery will be the replacement car market.

“A substantial number of Malaysians who purchased their vehicles from 2003 to 2005 may look at replacing their cars in 2010. There are also prospective buyers, who deferred their purchase in 2009, [who] are also expected to replace their cars in 2010 as the economy recovers,” he said during a media briefing at the Frost and Sullivan office here.

He added that the vehicle sales growth will be aided by the launch of several key models last year, and the country’s young population.

“The vehicle sales will be aided by the key models launched late last year such as Perodua Alza and Kia Forte. Proton’s new C/D segment model scheduled to be launched this year will also boost vehicle sales growth.

“Malaysia’s significant young population will also provide an impetus for vehicle sales growth in the long term. I foresee that the number of first-time car buyers will increase in the next few years and this will be a key growth driver for entry-level cars,” he said.

Frost and Sullivan expects multi-purpose vehicles (MPV) to be the fastest growing while passenger cars will be the slowest growth segments in sales this year.

“The multi-purpose vehicle will be the fastest segment, increasing [by] 12.7 per cent in 2010 to 68,000 units due to the intense competition among Proton Exora and Perodua Alza.

“Passenger cars will be the slowest growth segment at 3.2 per cent year-on-year due to the lack of new mass market model, as well as some passenger car customers opting for the entry-level MPVs. However, passenger cars will remain as the biggest contributor to the Malaysian total vehicle sales, accounting for about 75.3 per cent.

“Demand for commercial vehicles is expected to increase by 5 per cent year-on-year to 52, 345 units while 4x4 sports utility vehicles is likely to grow by 7.9 per cent year-on-year to 11,210 units,” he said.

Vehicle sales in 2009 ended 3.1 per cent lower year-on-year at 531,000 units, as compared to Frost and Sullivan’s earlier forecasted TIV of 501,500.

“The better than expected TIV for 2009 was due to the Malaysian government’s stimulus package, scrapping incentive scheme for Proton and Perodua and continued strong sales of Perodua’s Myvi and Viva and Proton Saga,” he said.

Mukhtyar also pointed out that the voluntary scrapping incentive has “softened the downtrend” in vehicle sales and added that 31,000 new cars were sold due to the incentive last year.

Frost and Sullivan estimated that automotive sales in East Malaysia have grown by about 3.4 per cent in 2009, compared to a 4.7 per cent decline in Peninsular Malaysia.

“In 2009, the commercial vehicles segment increased at 11.5 per cent year-on-year in East Malaysia, reflecting a more robust economy in Sabah and Sarawak due to increased development activities,” he said.

Perodua continues to hold its position as the country’s leading carmaker in 2009, with a 33.4 per cent share in the country’s automotive market. Proton, the second largest vehicle manufacturer in the country with a 30.4 per cent, has managed to increase its market share by 1.9 per cent, thanks to sales from its Exora in the MPV segment.

A Hydrogen Highway for the East Coast

One of the big issues facing hydrogen is just where we’re supposed to fill the cars that might run on the stuff. A Connecticut company is answering that question on the East Coast with plans for a “hydrogen highway” that will extend from Portland, Maine, to southern Florida.

California historically has been a hotbed of hydrogen research and development, but SunHydro wants to put the East Coast on the H2 map with 11 solar refueling stations. The self-contained stations use electrolysis technology from Proton Energy that takes electricity generated from solar power and splits water into hydrogen and oxygen. The process results in considerably fewer emissions than the traditional methods of shipping hydrogen to fueling stations by truck or reforming it from natural gas.

“Our goal is to make it possible for hydrogen car to drive from Maine to Miami strictly on sun and water,” company president Michael Grey said.

For all the attention on electric cars these days, several automakers continue developing hydrogen fuel cell vehicles. Honda is especially enamored with the technology. General Motors put the Chevrolet Equinox fuel cell vehicle in a few dozen driveways. Nissan is leasing a XTrail FCV truck to Coca-Cola. And Mercedes Benz will offer the F-Cell to “selected customers” in Europe and the United States this spring. Mazda and Volkswagen are among the technology’s proponents as well.

So, beyond giving the few hydrogen cars on the road a place to fuel up, the stations could help solve the the “chicken and egg” problem where the lack of fueling infrastructure begot a lack of cars and vice-versa.

“Having talked to several of the auto manufacturers, the indication that we’ve received is that there has to be a network of stations on the east coast for them to bring the cars here,” Grey said. “They want to bring the cars here, but there’s nowhere to fuel them.”

That quandary is familiar to Paul Williamson of the University of Montana College of Technology. “There’s no sense having hydrogen cars if there’s no place to refuel them,” Williamson said. “Most of the development is happening in California. Why? Because they have refueling stations.”

Williamson, whose family owned a service station when he was younger, likens the adoption of hydrogen technology to the early days of diesel. “We put in a pump behind our service station to begin with, and we had some cars and trucks here and there,” he said.

Similarly, SunHydro’s stations will appeal to early adopters and will be able to fill 10 to 15 vehicles per day to start. That isn’t much, but you’ve got to start somewhere. The first stations will be located in Portland, Maine; Braintree, Massachusetts; Wallingford, Connecticut; South Hackensack, New Jersey; Claymont, Delaware; Richmond, Virginia; Charlotte, North Carolina; Atlanta and Savannah, Georgia; and Orlando and Miami, Florida. If all goes well, Grey said the company hopes to expand westward.

“We’ve just decided that somebody needed to start this process,” Grey said. “You have a lot of the big companies talk about it, but nobody’s stepped up to the plate and made it happen.”

The company says using solar power to split water makes the capital requirements and maintenance costs cheaper than other hydrogen technologies. “From an efficiency standpoint, using the sun to make hydrogen is probably the most efficient method out there,” Mark Schiller, Vice President of Business Development at Proton, said.

The stations cost as much as $3 million to install and rely on private funding to make it happen (Tom Sullivan, founder of the Lumber Liquidators flooring supply chain, paid $10.2 million for Proton in August). Williamson says that’s the cost of doing business for a future-oriented company.

“You’ve got to have some visionary risk taking if you want to be a company of the future,” he said. “Otherwise, you’ll fall by the wayside.”

Photo of a Mercedes-Benz F-Cell: Daimler

See Also:

Italdesign-Giugiaro to develop 8 models for HK Motors

It looks like Italdesign-Giugiaro has loads more under its sleeves other than work for the new Proton Persona which is set to hit the streets in 20 months from now. They have just scored a huge contract from Chinese-backed US-based Hybrid Kinetic Motors Corp. The car above was unveiled at the announcement of the deal – but it isn’t even a model designed for HK Motors. It’s a recycled concept shown at 2008 by Italdesign called the Giugiaro Quaranta Concept.

Hybrid Kinetic Motors Corp has engaged Italdesign for the development of 8 new models based on a common flexible platform and powertrain, all to be engineered by Italdesign. The deal is worth 375 million Euros and will keep GIugiaro occupied over the next 4 years, and they will also provide on-site assistance for production, which means there will be income for the next 6 to 8 years!

Many probably think Italdesign is a design firm, but truth it they are capable of engineering work as well and have actually often been contracted by the mainstream automakers to assist with vehicle engineering. It’s just that launching a product with ‘design by Giugiaro’ is seen as a good thing but ‘engineered by Giugiaro’ usually makes people wonder why a car company can’t manage its own product engineering.

But among the models that Giugiaro has engineered are the new R56 MINI range including the Cooper, Clubman and Cabriolet. These are only the vary few models that the automakers have allowed Giugiaro to take credit for – the rest are buried with NDAs and confidentiality agreements.

“HK Motors is offering us the unique opportunity to design an entire range of products that should be state-of-the-art in terms of aerodynamic efficiency and weight because reducing emissions is the main target of the entire project,” says Italdesign vice chairman and design director Fabrizio Giugiaro. The company is said to be aiming for CO2 emissions of under 50g/km and its vehicles will use a common powertrain that uses a small turbocharged engine.

Their main sales market seems to be USA at the moment, and HK Motors has expressed that it plans to build a plant in South Alabama and make up to 1 million cars a year there.

Mr Money: Time is right to drive a hard bargain

So who are the mass manufacturers who've been struggling to find buyers during the past 12 months? In Britain, at least, Saab has the dubious honour of topping the league table. But Daihatsu and Chrysler aren't far behind. All three lost more than half their sales last year (compared with 2008).

Jeep is down 38 per cent, Proton 37 per cent and Dodge almost a third. Renault and Mitsubishi have both plummeted 29 per cent, Lexus 28 per cent, while Subaru and Vauxhall have both slumped by a fifth.

Looking at the bigger picture and registrations for Europe as a whole, BMW did particularly badly with a 15 per cent slide last year, while Mercedes dived 14 per cent. Currently, it's possible to get almost 20 per cent off many BMWs, while Mercedes is preferring to keep its price slashing in the 10-15 per cent region. For now.

Of the 10 best-selling models in Europe, the Ford Focus suffered more than any other car last year: a 15 per cent drop in sales. If you're buying one of these overpriced family hatchbacks in Britain, ask for – and get – as much as a third off.

* With cash-strapped General Motors and its paymaster, the US government, perilously close to shutting down and permanently killing off Saab, discounts on the Swedish firm's 9-3 and 9-5 saloons and estates are refusing to go higher than the 33 per cent mark, which is surprising considering that they're almost defunct models.

But if anything, these price reductions could get smaller rather than larger as production grinds to a halt and Saab diehards worldwide fight to grab the last-ever models to roll off the line. They might become valuable collectors' items. But, then again, they could become as worthless as most second-hand Rovers.

* It's a fact that we drivers pay the Government £52,000 million per year in road user taxes. And part of this colossal financial contribution from us goes to the Highways Agency, local councils, police forces and other agencies, in return for decent pothole-free streets that are properly managed, and gritted before snow and ice arrive.

It's wholly unacceptable that in recent weeks countless roads were inadequately gritted and therefore became treacherously unpassable for some drivers who had no choice but to park up, sometimes for the night, occasionally for days on end.

But it's a bloody disgrace that some of these desperate motorists faced with impenetrable routes are now facing fines of £100 or more. This following the decision by numerous profit-obsessed authorities to tow their "abandoned" cars away.

The state has effectively slapped parking tickets and towaway fees on motorists who were unable to complete their journeys, largely because the state didn't clear the highways of snow, failed to treat the ice and therefore failed to keep roads open.

I strongly urge motorists who have been accused of "abandoning" their vehicles to challenge the allegation in court.

* The most suitable cars for first-time drivers, or families seeking additional motors, are the sub-superminis that make up the mixed-race Citroën C1/Peugeot 107/Toyota Aygo clan.

These little cars are cheap to buy, insure and fuel (officially, they typically do 63mpg), and they're not short of good looks and street cred, either.

As all three are near identical, it's no surprise that there's little between them in terms of list prices, which all start at a tad over £8,000.

Discounts vary but new-car investments don't come much better than this.

Malaysia car sales to recover in 2010, group says

KUALA LUMPUR, Malaysia

Auto sales in Malaysia fell by a smaller-than-expected 2 percent in 2009 but will rebound and could hit a record high this year amid the global economic recovery, an industry group said Wednesday.

Sales in Southeast Asia's largest passenger car market fell to 536,905 vehicles last year, the Malaysian Automotive Association said.

It exceeded the association's forecast of 500,000 vehicles as sales perked in the last quarter of the year, buoyed by government stimulus measures which boosted consumer spending, improved business confidence, said its president Aishah Ahmad. There were also aggressive sales campaigns.

The stronger performance in the fourth quarter, underpinned by Malaysia's economic recovery, is expected to extend into 2010, with auto sales seen rising 2.4 percent to 550,000 vehicles, Aishah said. It could beat the record high of 552,614 units sold in 2005, she said.

"This could be a record year," she told reporters.

Malaysia's economy is forecast to rebound to grow 2 percent to 3 percent in 2010 after a slump last year. However, the government has cut spending for 2010 to rein in a swollen budget deficit and plans to revamp expensive fuel subsidies in the next few months.

Aishah said the restructuring, which could see subsidies withdrawn for bigger engine cars, would not have a long-term impact on sales in that category as buyers of luxury cars could afford to pay higher fuel prices.

She said the 2010 sales forecast was also based on expectations that interest rates would remain at record low levels amid the economic recovery.

The association, which groups some 40 car manufacturers and distributors, projected sales to rise to 566,500 vehicles in 2011, and to surge to 618,000 by 2014.

Compact car maker Perodua was the best-selling car brand in 2009, retaining its leadership for a fourth straight year. Its market share rose to 31.1 percent from 30.5 percent in 2008, the association said.

National carmaker Proton gained ground with a 27.6 percent share, up from 25.9 percent in 2007. Japanese carmaker Toyota Motor Corp. secured 15.2 percent of the market, followed by Honda Motor Co. with 7.2 percent and Nissan Motor Co., with 5.9 percent.

Aishah said Malaysia's 2 percent drop in auto sales last year was small compared to a 28 percent decline in Singapore, 20 percent in Indonesia and 16 percent in Brunei.

Thailand registered an 11 percent decline but remained the largest auto market in Southeast Asia with total sales of 548,871 units, mostly commercial vehicles, she said. Only Vietnam and Philippines posted higher auto sales.

Malaysia maintained its status as the largest passenger car market in Southeast Asia with sales of 486,342 units, or nearly 91 percent of its total auto sales in 2009.

Automotive Industry's Volume To Grow 4.5 Per Cent, Says OSK Research

January 21, 2010 15:16 PM

Automotive Industry's Volume To Grow 4.5 Per Cent, Says OSK Research

By: Ramjit

-->

KUALA LUMPUR, Jan 21 (Bernama) -- The automotive industry's total industry volume (TIV) is expected to grow by 4.5 per cent at 561,066 units, higher than the earlier estimate of 3.7 per cent, according to OSK Research.

The growth projection is supported by the high correlation of 96 per cent to gross domestic product (GDP) growth, the research firm said, adding that its house forecast is 4.0 per cent.

"The strong correlation of TIV to GDP growth is demonstrated in the 2.0 per cent decline in 2009 against our GDP forecast of a 2.0 per cent contraction in GDP. A simple linear regression based on a 4.0 per cent GDP growth suggests that vehicles sales forecast could breach 574,683 units," OSK Research said in a report on Thursday.

"Although consumer sentiment was somewhat subdued in third quarter last year, an upward momentum in the consumer sentiment index for both the fourth quarter of 2009 and first quarter of 2010 is highly possible, going by the historical average momentum over the its respective quarter throughout the recent years and the fact it is also coming from a low base in early 2009," it said.

OSK Research said an increase in employment opportunities with new people entering the workforce will boost demand for TIV growth for 2010.

"This is due to the high percentage of the young population, where those within the age of 20 to 29 make up as much as 17.2 per cent of the total Malaysian population. It is likely that as much as half of this age group have yet to enter the workforce," it said.

OSK Research said that total loans growth is expected to further broaden by 8.5 per cent in 2010.

"As this is a function of GDP, ultimately the expanding loans base would tilt towards a more flexible lending policy on the part of banks," it said.

"This also comes in the light of a healthy non-performing loan ratio in the overall banking sector despite the tough environment in 2009."

Nevertheless, there are risks of a shortfall such a drastic hike in petrol prices and subsidy removals, according to OSK Research.

"Risks of a removal in petrol subsidies and higher oil prices could potentially create a knee-jerk impact on TIV sales, notably on vehicles with a higher engine capacity," it said.

"As 60 per cent of the total volume comprises vehicles with engine capacity of less than 1500cc, it is safe to say that demand would not negatively impact TIV sales over the longer run."

The other downside risk is that the likely increase in the hire purchase (HP) rates are unlikely this year after the last round of increase non-national makes back in May last year when rates imposed by banks rose by an average of 100 basis point, OSK Research said.

"In a worst case scenario, although the possibility is highly unlikely, a sudden 100 basis point increase in HP rates across the broad, could see a knee-jerk reaction where volume could possibly decline by as much as 7,000 units a month, close to 19 per cent of the average monthly volume over the past two years," it said.

"Likewise, should a 100 basis point increase reflect solely on the HP rates of national marques such as Proton and Perodua, the extent of a knee-jerk drop could be as much as 3,000 units, equivalent to 10 per cent of the average monthly volume since 2008."

OSK Research said the impact on national cars would be rather less though when compared to the non-national, as over 60 per cent of the total TIV represents the volume from both the Proton and Perodua.

As 2010 will be the year that a slew of subsidies will be removed along with the introduction of the Goods and Services Tax, "we do not see the likelihood of an increase in HP in the near term", it said.

"It is worth mentioning that auto players backed by their own HP financing arms, namely non-national automakers such as Toyota, Nissan, including luxury auto players BMW, were able to offer lower interest rates at 1.99 per cent given their ability to absorb their own costs as compared to national automakers, which are highly dependent on the availability of loans from banks which typically charge at higher HP rates," it added.

-- BERNAMA

We provide (subscription-based)  news coverage in our Newswire service.

Growing economy expected to boost 2010 M'sian auto sales

Published: Wednesday January 20, 2010 MYT 12:13:00 PMUpdated: Wednesday January 20, 2010 MYT 4:00:39 PM Growing economy expected to boost 2010 M'sian auto sales(update)

PETALING JAYA: The Malaysian Automotive Association expects the automotive total industry volume to grow 2.4% to 550,000 units this year on improved global economic outlook and rising consumer sentiment.

President Datuk Aishah Ahmad said the multiplier effects from the Government's stimulus packages would boost the economy and create demand for new vehicles.

Meanwhile, TIV for 2009 declined 2% to 536,905 from 548,115 units in 2008 due to the impact from the global economic downturn.

It exceeded the association's forecast of 500,000 vehicles as sales perked in the last quarter of the year, buoyed by government stimulus measures which boosted consumer spending, improved business confidence, said Aishah Ahmad.

There were also aggressive sales campaigns.

The stronger performance in the fourth quarter, underpinned by Malaysia's economic recovery, is expected to extend into 2010, with auto sales seen rising 2.4 percent to 550,000 vehicles, Aishah said.

It could beat the record high of 552,614 units sold in 2005, she said.

"This could be a record year," she told reporters.

Malaysia's economy is forecast to rebound to grow 2 percent to 3 percent in 2010 after a slump last year.

However, the government has cut spending for 2010 to rein in a swollen budget deficit and plans to revamp expensive fuel subsidies in the next few months.

Aishah said the restructuring, which could see subsidies withdrawn for bigger engine cars, would not have a long-term impact on sales in that category as buyers of luxury cars could afford to pay higher fuel prices.

She said the 2010 sales forecast was also based on expectations that interest rates would remain at record low levels amid the economic recovery.

The association, which groups some 40 car manufacturers and distributors, projected sales to rise to 566,500 vehicles in 2011, and to surge to 618,000 by 2014.

Compact car maker Perodua was the best-selling car brand in 2009, retaining its leadership for a fourth straight year.

Its market share rose to 31.1 percent from 30.5 percent in 2008, the association said. National carmaker Proton gained ground with a 27.6 percent share, up from 25.9 percent in 2007.

Japanese carmaker Toyota Motor Corp. secured 15.2 percent of the market, followed by Honda Motor Co. with 7.2 percent and Nissan Motor Co., with 5.9 percent.

Aishah said Malaysia's 2 percent drop in auto sales last year was small compared to a 28 percent decline in Singapore, 20 percent in Indonesia and 16 percent in Brunei.

Thailand registered an 11 percent decline but remained the largest auto market in Southeast Asia with total sales of 548,871 units, mostly commercial vehicles, she said.

Only Vietnam and Philippines posted higher auto sales.

Malaysia maintained its status as the largest passenger car market in Southeast Asia with sales of 486,342 units, or nearly 91 percent of its total auto sales in 2009.

Malaysia car sales to recover in 2010, group says

Auto sales in Malaysia fell by a smaller-than-expected 2 percent in 2009 but will rebound and could hit a record high this year amid the global economic recovery, an industry group said Wednesday.

Sales in Southeast Asia's largest passenger car market fell to 536,905 vehicles last year, the Malaysian Automotive Association said.

It exceeded the association's forecast of 500,000 vehicles as sales perked in the last quarter of the year, buoyed by government stimulus measures which boosted consumer spending, improved business confidence, said its president Aishah Ahmad. There were also aggressive sales campaigns.

The stronger performance in the fourth quarter, underpinned by Malaysia's economic recovery, is expected to extend into 2010, with auto sales seen rising 2.4 percent to 550,000 vehicles, Aishah said. It could beat the record high of 552,614 units sold in 2005, she said.

"This could be a record year," she told reporters.

Malaysia's economy is forecast to rebound to grow 2 percent to 3 percent in 2010 after a slump last year. However, the government has cut spending for 2010 to rein in a swollen budget deficit and plans to revamp expensive fuel subsidies in the next few months.

Aishah said the restructuring, which could see subsidies withdrawn for bigger engine cars, would not have a long-term impact on sales in that category as buyers of luxury cars could afford to pay higher fuel prices.

She said the 2010 sales forecast was also based on expectations that interest rates would remain at record low levels amid the economic recovery.

The association, which groups some 40 car manufacturers and distributors, projected sales to rise to 566,500 vehicles in 2011, and to surge to 618,000 by 2014.

Compact car maker Perodua was the best-selling car brand in 2009, retaining its leadership for a fourth straight year. Its market share rose to 31.1 percent from 30.5 percent in 2008, the association said.

National carmaker Proton gained ground with a 27.6 percent share, up from 25.9 percent in 2007. Japanese carmaker Toyota Motor Corp. secured 15.2 percent of the market, followed by Honda Motor Co. with 7.2 percent and Nissan Motor Co., with 5.9 percent.

Aishah said Malaysia's 2 percent drop in auto sales last year was small compared to a 28 percent decline in Singapore, 20 percent in Indonesia and 16 percent in Brunei.

Thailand registered an 11 percent decline but remained the largest auto market in Southeast Asia with total sales of 548,871 units, mostly commercial vehicles, she said. Only Vietnam and Philippines posted higher auto sales.

Malaysia maintained its status as the largest passenger car market in Southeast Asia with sales of 486,342 units, or nearly 91 percent of its total auto sales in 2009.

'I won't be bad anymore'

FATAL END: Police looking at Ng's body after he was gunned down. Pic: ARIF KARTONO

SERDANG: "I promise I won't be bad anymore," Ng Meng Kee, 34, told his mother when he was charged with stealing luxury cars.

That promise was made last December. One that he broke in less than two  months. On Sunday evening, Ng was killed in a shootout with police at Taman Perindustrian USJ1, near the Giant hypermarket.

Police sources said Ng, who carried a handgun and sometimes a machete or axe as well, was the leader of a  seven-man luxury car theft gang.

"According to our information, Ng was an expert at picking locks and could pick even the most difficult ones in seconds. The most he would take to get into a house was one minute," said a source.

The source said Ng's gang, which was widely known in crime circles, depended on him to open the doors of houses they targeted at night.

The modus operandi of the group, said the source, was to break into houses, steal the car keys and drive off in them — usually BMW and Mercedes Benz models.

"If the owners were to wake up and confront them, they would not hesitate to use force, tie them up or even harm them."

The gang stole more than 10 luxury cars around Kuala Lumpur and Selangor in recent months and was also believed to be involved in more than five such thefts in Malacca and Pahang.

Police records show that the gang had been active for some three years.

The sources said Ng was arrested on Nov 13 and was charged with stealing luxury cars the following month. About 4pm on Sunday, his short-lived life of crime came to an abrupt end.

Police spotted him and at Berjaya Times Square earlier in the day. He took off in a Mercedes Benz stolen from a goldsmith's son-in-law and got to USJ, after ramming into three police vehicles along the way.

About two hours later, Ng was cornered in Taman Perindustrian USJ1, near the Giant hypermarket, and was gunned down when he tried to open fire at police.

A preliminary post-mortem report from the Serdang Hospital showed three bullets had pierced Ng's body, one in the head.

Speaking to reporters at the Serdang Hospital yesterday, Ng's mother, in her 50s, said her son started mixing with "the wrong people" after his father passed away 10 years ago.

"He began coming home late all the time," the sobbing mother said. She really believed Ng would change the last time he promised her that he would, but her heart broke when she received news of his death at 1am yesterday.

Armed car theft gang crippled

KUALA LUMPUR: Police have crippled an armed gang of car thieves with the arrest of five members in several raids conducted in the Klang Valley recently.

A police source said first arrest was that of a 29-year-old who was caught driving a Mitsubishi Lancer with tampered number plates during a random check near Plaza Damas in Sri Hartamas on Jan 13.

The car was reported to have been stolen in Puchong. In follow-up operations, four other suspects aged between 19 and 28 years were picked up at different locations in the Klang Valley.

Police also seized several parangs and a toy gun from a house in Puchong Perdana and from two cars, a Proton Iswara Aeroback and an Iswara Sedan, which were also believed to have been stolen.

Give us more cash-for-clunkers

PETALING JAYA: Consumer associations say there should be a higher cash rebate should another cash-for-clunkers programme be introduced.

Most consumer bodies The Malay Mail spoke to felt that if the programme was to be re-introduced, the government should allow a wider mix of vehicles to be included in the scheme, instead of allowing only Proton  cars to be traded in.

The scheme, introduced last March under the Second Financial Stimulus, offered a voucher for RM5,000 to  encourage owners of cars 10 years old or more to scrap the vehicles and buy a Proton car.

Referring to a letter from the Proton Edar Dealers Association Malaysia (Peda) published in The Malay Mail last Tuesday, which called on the government to reinstate the cash-for-clunkers programme, consumer groups said it would ensure a win-win situation for the people and car manufacturers.

"It's a good idea because indirectly, it can help the economy as well. A higher cash rebate for those who would like to buy a new car should be implemented if the government plans to reintroduce the programme," president  of the Federation of Malaysian Consumers’ Associations (Fomca) Datuk N. Marimuthu said.

A proper study should be made before any final decision is made.

"Nobody who owns a car worth RM21,000 wants to get only RM5,000 as cash rebate if he chooses to trade it in.

"It would be a good move for the  government to increase the cash rebate according to the vehicle model, and also value the vehicle based on what it is worth at the time it is traded in," Marimuthu said.

National Consumer Complaints Centre (NCCC) chief executive officer Muhammad Sha'ani Abdullah echoed a similar view, adding that the scheme could also help improve and increase Proton's productivity.

"If the programme is re-introduced, it should ideally benefit the lower-salaried group," he said.

Sha'ani said the cash-for-clunkers programme would also increase the sales of local cars and at the same time, help to spur the country's economy.

Consumer Research and Resource Centre chief executive officer Datuk Paul Selvaraj, said the scheme would enable potential car buyers to keep their options open.

However, Selvaraj believes greater focus should also be given to the improvement of the public transport system as this would benefit everybody in the long run.

Peda in its letter said Proton car sales would be affected this year by three government policies — a spillover from the Second Financial Stimulus introduced in last March; the revised National Automotive Policy announced last October; and Budget 2010.

It said the Second Financial Stimulus helped to sustain car sales last year despite the recession through the cash-for-clunkers policy, which attracted 32,000 applications.

However, funds for the scheme were exhausted by October, seven months after its launch, resulting in only about 15,000 applications being approved while the rest were given an less attractive offer.

This led to a 30 per cent drop in bookings, especially for the Proton Saga. Peda also said the RM5,000 vouchers for scrapped cars were only partially disbursed to dealers by the government, further exhausting their working capital.

The momentum gained from the scrap-old-cars programme would be lost without any continuity, it added, especially with Malaysia's average vehicle age being relatively high.

Lotus Evora Cup Racer – 400 bhp, 400 Nm, 1200 kg

This the race ready Lotus Evora Cup Racer that meets FIA GT4 specification. As its name suggests, it will race in a European one-make Evora Cup series.

The standard car’s Toyota sourced 276 bhp 3.5-litre V6 engine has been enlarged to 4.0-litres, producing more than 400 bhp and over 400 Nm of peak torque. The mid-mounted engine is paired to a six-speed sequential paddle shift gearbox. Serious pace is guaranteed, as the V6 has only 1,200 kg to pull, 200 kg less than the road going Evora.

Other tweaks include adjustable motorsport dampers and six-piston front brake calipers, with two-piece aluminum belled brake discs. The Evora Cup Racer also gets electrical cut off, fire extinguisher and traction control. In addition, a Dallara developed aero package which includes carbon fibre parts significantly improves downforce and cooling. For all that, you’ll need £120,000 excluding taxes.

Looking good in Epsom Green with a Solar Yellow stripe down the centre, the final design and specifications of the Lotus Evora Cup Racer will be revealed at the Geneva show in March. Perhaps Proton’s R3 division should get one of these down for the Merdeka Millennium Endurance Race; with an ace driver like Tengku Djan behind the wheel, it will surely give the Petronas BMW Z4s and 911 GT3s a run for their money!

'CASH-FOR-CLUNKERS':

AJIT wants to know the current status of the Proton Xchange Programme.

“I was in the UK earlier this year, and while on the internet, came across a statement that our government was scrapping the car exchange programme at the end of this year.

“Not wanting to lose the opportunity, I applied for a Proton Saga 1.3 under the offer upon my return to the country. I made the arrangements at the Proton outlet in Jalan Kuala Kangsar in Ipoh."

AJIT says he has been advised by a salesman to send his old car to the Puspakom in Gopeng for inspection.

“I went there on Oct 10 and was issued an approved document which I handed to Proton."

AJIT was then told to get a clearance document from the Road Transport Department and handed it to Proton before being instructed to work out the car loan for the new car. “My car loan was approved in less than a week.”

On Nov 4, the Proton salesman informed AJIT that the loan was approved and requested him to pay a deposit on the new car which he did on the same day.

However, AJIT is beginning to feel sceptical about the Proton Xchange programme when he could not get a clear answer on the status of the RM5,000 exchange voucher.

“I hope PROTON can clear the air.”

● A spokesperson for Proton Holdings Berhad says they have explained the status of the programme to AJIT.
Proton confirms that its Xchange Programme has been discontinued but adds that they have come up with a special incentive scheme for 'unsuccessful' applicants in appreciation for their support of owning a Proton car.
“We received 7,539 applications for the programme from Nov 1 to 6 when we had to stop it as the funds had been used up.”
The spokesperson advises these applicants to contact the outlets they have been dealing with to make further arrangements to enjoy the new scheme.
"As it is not part of the Xchange Programme, applicants don't have to surrender their old cars under this scheme.
"If they want to sell off their old cars, Proton will help them make arrangements with second-hand car dealers."
The spokesperson says while the new scheme is applicable to purchases of any Proton cars, the vehicles must be registered by Jan 31 next year.
“We would also like to apologise to all our customers who have recently turned up at our sale outlets for the Xchange Programme only to be disappointed to hear the news of its discontinuation.
“We regret to inform that only applications that reached our regional offices on or before Oct 31 will be processed accordingly for the rebate vouchers.”
Under Xchange Programme, a RM5,000 discount was given to owners who traded in their cars that were at least 10 years old to buy new Proton cars. It was to run until today or until the funds had been fully used.
However, Proton received 25,862 applications from March 10 to Oct 31, exhausting the funds provided by the Stimulus Plan well before the year-end period.

Used car dealers cautious on outlook for 2010

A used car lot in Kuala Lumpur. Dave Foong (inset) says the market still seems uncertain

Foong also said the imposition of a RM10,000 charge on the price of open approved permits (APs) would impact sales.

During the tabling of Budget 2010 last October, the Government proposed that open APs no longer be sold for a measly few ringgit, instead a RM10,000 fee was levied for such a document.

When polled by StarBiz at the end of 2008, like many local used car dealers, Foong forecast a bleak outlook for 2009. Thankfully, conditions weren�t as tough as initially expected, he said.

�Fortunately, 2009 wasn�t as bad. Can still survive-lah.�

Foong has been in the used car business for over 15 years. The company sells fully imported cars. Overall, he said Japanese brands were the most popular in 2009.

�Japanese brands like Toyota had the best resale value. Models like the Alphard and Estima were still moving. People were more selective with the European brands.

�Japanese makes are the bread and butter of the local used car industry,� he said, adding that the used car trade did see a �pick up� towards the end of 2009.

A Klang Valley-based used car dealer, who requested anonymity, said he was hopeful that 2010 would be �a better year� for the industry.

�Markets everywhere are turning around and hopefully conditions will be better in 2010,� he said.

The dealer said sales of local cars (versus foreign vehicles) performed better in 2009 and the trend would continue for 2010. He said rising inflation would have an impact going forward.

�Oil prices are not favourable, having breached the US$80-mark recently. This will spur inflation and will have an impact on business,� he said.

Butterworth-based Keat Hoe Used Car Enterprise is also unsure about what to expect for 2010. Sales manager David Ang said: �The market is still unstable and the credit facilities are still not so good; 2010 will be a slow year.�

He said fuel efficient, smaller engine capacity cars would sell well.

�These cars are easier to sell as they are also cheaper.�

Ang said that with the Chinese New Year festival next month, sales in the first few months on the year was expected to be slow.

�During these times, people will spend money on festive gifts or even go on holiday. After that, would they have money to buy cars?�

He also said the recently announced petrol subsidy scheme, which requires owners of cars with bigger engine capacities to pay a higher price for petrol, would have an impact on the used car trade.

The Government earlier this month said it was planning a fuel pricing mechanism to ensure that only targeted groups, particularly those with lower income, would receive the fuel subsidy.

�It won�t just affect the rich. There are many businessmen who drive big cars but not all of them are wealthy. The not-so-rich ones will also be affected,� Ang said.

Kuala Lumpur-based Kim Sang Used Car Co is also maintaining a very cautious outlook. Salesman Sunny said he was expecting a �tough 2010.�

�The economy is not good and many people are still holding back to wait and see.�

He also cited a recent news report on a Penang-based used car dealer offering a �buy one, get one free�� package of a pre-owned Proton Iswara or Perodua Kancil with every purchase of a luxury car worth over RM100,000 in conjunction with the Chinese New Year.

�The fact that dealers are resorting to such measures is evidence that times are still not good,� said Sunny.

Sales manager Terence Chin of Klang Valley-based Sadra Motor Sdn Bhd, meanwhile, said business was �okay� in 2009 and should be �about the same� this year.

�We�re not cautious. But we will need to work harder,� he said.

For latest Bursa Malaysia indices, charts and other information click here

IRC: Monte Carlo Rally 2010 Preview

 

PREVIEW: Intercontinental Rally Challenge, round one of 12
Rallye Automobile Monte-Carlo, 19-23 January, 2010

Sebastien Ogier was a shock Monte Carlo Rally winner in 2009

THE CHALLENGE

Two months after the curtain came down on the 2009 Intercontinental Rally Challenge season in Scotland, the series bursts back into life on one of motorsport's showpiece events: Rallye Automobile Monte-Carlo. And to befit a rally of such magnitude, an exciting driver line-up, including world rally star Mikko Hirvonen, Renault F1's Robert Kubica, IRC aces Kris Meeke and Jan Kopecky, plus several leading amateurs, will take the start in the French city of Valence on Tuesday January 19.

For the second season in a row, the Monte Carlo Rally will open the 12-event IRC schedule. Just as in 2009, a demanding route has been plotted with the 63 crews expected to tackle the 405 competitive kilometres over 15 special stages prior to the finish in Monaco in the early hours of Saturday January 23.

The event will continue to be based in Valence, the capital of the department of Drome, in the Valentinois region of France. As well as the ceremonial start, the main service park will also be located in the city before the event heads south to Monaco for the final quartet of stages on the night of Friday January 22.

But it's the narrow mountainous roads in the Ardeche region that will provide the backdrop for the bulk of the competitive action on Wednesday January 20 and Thursday January 21. On Wednesday the itinerary will consist of the Burzet-Lachamp Raphael and St Pierreville-Antraigues stages run twice with remote service in the town of Vals les Bains, where crucial tyre changes will be permitted. On Thursday the route heads to the north of Drome for three repeated stages split by service in Valence.

Friday's final leg starts in Valence. Following a stage from Montauban sur l'Ouveze to Eygalayes, crews continue south to Monaco where they will service before the first run over the famous Col de Turini, which is included on the Peira-Cava to La Bollene Vesubie stage. After three more stages, including a second run over Col de Turini, the surviving competitors head back to Monaco and the finish just after 01:00hrs on Saturday.

In a change to the format for this year's rally, a nine-kilometre prologue stage will get the action underway on January 19 following the ceremonial start in the Champ de Mars in Valence. The run between Lente and Col de Gaudissart will determine the starting order of the rally, which gets underway with leg one on January 20. Although the standings won't influence the final outcome, they could be pivotal in the event of the inclement weather synonymous with the rally.

Given the rally's mountainous location the weather is notoriously changeable and that means a stage could start in dry conditions but finish on ice-coated roads. Because opportunities to change tyres are restricted, drivers regularly have to compromise when selecting their choice of rubber for a loop of stages. The result is drivers frequently having to adopt a cautious approach on one stage if their tyres are not suited to the conditions, but then being able to push on the next test if their tyres are ideal for the stage surface.

It can lead to drivers losing chunks of time on one stage but then quickly regaining any lost ground on the subsequent run. Even in dry conditions, the varying quality of the road surface means grip levels often change.

Crews will prepare for the event with a three-day reconnaissance of the stages from Saturday January 16 to Monday January 18. They will also be able to use additional stage information gathered by their safety crews, who are authorised to pass through the stages shortly before they are used competitively to give up-to-date information on the road surface and any potential hazards that might lie in store.

THE COMPETITORS

Peugeot starts 2010 on the back of winning its third IRC manufacturers' title. Briton Kris Meeke, who claimed the drivers' crown last season with four wins, tops the list of 207 runners in a Peugeot UK-backed entry. But he will face strong opposition from French drivers Sebastien Ogier, last year's shock winner, and Peugeot development pilot Stephane Sarrazin. Portuguese Bruno Magalhaes will make his Monte Carlo debut but is a known quantity on asphalt. Austrian Franz Wittmann, who spent 2009 driving a Mitsubishi Lancer, switches to a 207 for the new campaign and will be a solid performer.

Skoda is set to provide Peugeot with its sternest test. Jan Kopecky, last year's IRC runner-up, heads the three-strong factory effort that also includes Juho Hanninen and Nicolas Vouilloz. Hanninen led in Monte Carlo last year before rolling, while Kopecky claimed fourth overall. Vouilloz won the IRC drivers' title in 2008 but endured a frustrating season last year, which began when he crashed on the Monte. He switches from Peugeot Team Belux to drive a Skoda Fabia S2000 in competition for the first time. Of the other Skoda drivers, the inclusion of Guy Wilks on the entry provides added intrigue. The Briton won the RAC MSA Rally of Scotland, last year's IRC season finale, in a Skoda UK-supported Fabia.

Abarth will count on several privateer drivers to fly the flag for the Italian make. Finn Toni Gardemeister provides the firm's best chance of victory. His Grande Punto will be run by the Italian Astra Racing concern. He was in contention for a podium finish last season until an electrical fault intervened and forced his retirement. French drivers Olivier Marty and Renaud Poutot will also appear in Grande Puntos.

For the first time ever, M-Sport will be represented in the IRC. The British preparation firm overseas Ford's World Rally Championship programme and is responsible for the design and development of the Fiesta S2000. Two examples of the machine will appear in Monte Carlo: WRC event winner Mikko Hirvonen will drive the lead car with French youngster Julien Maurin appearing in a second entry. Hirvonen, from Finland, finished second on the event when it last counted for the WRC in 2008. Maurin took part in 2009 in an Abarth Grande Punto but retired with mechanical woes.

Subaru also joins the IRC this season and boasts French ace Bryan Bouffier as its expected star performer. The Polish rally champion will drive for Tommi Makinen Racing and should challenge for a top ten placing. Swiss Olivier Burri and Frenchman Jerome Aymard should also show well.

Italian Gabriele Noberasco heads Ralliart's challenge in a Mitsubishi Lancer Evo IX. Frederic Romeyer, from France, will also drive an Evo IX. Irish veteran Eamonn Boland, who has extensive Monte Carlo experience, will have a new Evo X model at his disposal. His countryman, Daniel Barry, is highly rated after winning the one-make Mitsubishi Ralliart Evolution Challenge in the UK last season.

Proton is also registered for the IRC but won't make its first appearance of the season until Rally d'Italia Sardegna in June when Alister McRae, younger brother of rally legend Colin McRae, will drive one of the two factory cars.

The Monte Carlo Rally hosts the opening round of the Clio R3 European Trophy, which will also appear on the IRC-counting Geko Ypres Rally in Belgium and Barum Czech Rally Zlin later in the season. Drivers registered for the European Trophy will be able to score points in the IRC 2WD Cup on those three rallies. While Belgian Kris Princen can count on plenty of experience, rising Corsican star Pierre Campana and Grand Prix driver Robert Kubica can be expected to challenge for the category win. Kubica, from Poland, is a self-confessed rally fan and is tackling selected events alongside his programme with the Renault F1 team.

THE EXPECTATIONS

"It's the oldest and the most prestigious rally in the world and it really makes the hairs on the back of your neck stand up just thinking about it because it's also the most daunting and challenging event of the year. From a driving point of view your heart is in your mouth all the time because the conditions are constantly changing and you're never always on the right tyre. You can win the rally not by going quickest on any of the stages but by reading the conditions correctly and trusting your instincts."
Kris Meeke, Peugeot UK driver and defending IRC champion

"Every driver wants to win the Monte Carlo Rally because it is so tough and never easy with the changing weather conditions. It's not my favourite rally in the world but it's an event I do like and, in the past, I have had some good results. To be successful you need to concentrate on your pacenotes all the time and trust the information provided by your ice note crew because the stages can be very tricky in places. You also need to be brave and have a car that is very reliable."
Toni Gardemeister, Abarth Grande Punto privateer

"I've always had a difficult relationship with this rally. I love the rally when I am not competing on it but when you get there and the conditions are hard then it can be tough. But it's a great challenge and has a long history so it's very important to win this rally. The Fiesta Super 2000 is a new car but I've had a good feeling with it when we have tested on Tarmac so I hope we can develop it more and try to win. But I know my rivals have a lot of experience in their cars and did Monte Carlo last year so that will help them."
Mikko Hirvonen, M-Sport Fiesta driver

Juho Hanninen will form part of the three-strong works Skoda team

TV TIMES

Eurosport, Europe's largest television channel, will show live coverage of 14 of the 15 stages (see below), ensuring viewers will be able to follow all the action as it happens. Highlights of each day will also available at www.rally-irc.com

Wednesday January 20
11:45-14:00: SS1 and SS2 LIVE Eurosport2
14:45-16:00: SS3 LIVE Eurosport2
16:00-17:00: SS4 LIVE Eurosport
Thursday January 21
10:00-11.45: SS5 and SS6 LIVE Eurosport2
12:15-13:15: SS7 LIVE Eurosport2
15:15-16:00: SS8 LIVE Eurosport2
16:00-17:00: End of SS8 and SS9 LIVE Eurosport
19:30-20:00: SS10 delayed Eurosport2*
23:45-00:15: SS10 repeated Eurosport
Friday January 22
19:00-20:45: SS12 and SS134 LIVE Eurosport
23:00-00:45: SS15 LIVE Eurosport
Tuesday January 26
23:00-23:30: Review Eurosport    
*SS10 LIVE on Eurosport France from 18:00-19:00
All times are CET

EVENT ESSENTIALS

Event: 78th Rallye Automobile Monte-Carlo
Starts: 17:00hrs, Valence, January 19
Finishes: Monaco, January 23
Entries received: 63
IRC appearances: one (2009)
2009 winners: Sebastien Ogier (FRA)/Julien Ingrassia (FRA) Peugeot 207 S2000
Surface: asphalt
Number of stages: 15
Special stage distance: 405.01 kilometres
Liaison distance: 1264.55 kilometres
Total distance: 1669.56 kilometres
Itinerary (all times shown are local): Prologue stage (Tuesday January 19): Lente-Col de Gaudissart (8.83 kilometres), first car due: 18:38hrs. Leg one (Wednesday January 20): Start: 09:23hrs; Tyre Service: Vals les Bains, 11:03hrs; SS1: Burzet-Lachamp Raphael 1 (27.27 kilometres), 11:51hrs; SS2: St Pierreville-Antraigues 1 (45.17 kilometres), 12:59hrs; Tyre Service: Vals les Bains, 14:14hrs; SS3: Burzet-Lachamp Raphael 2, 15:02hrs; SS4: St Pierreville-Antraigues 2, 16:10hrs; Tyre Service: Vals les Bains, 17:15hrs; Service A: Valence, 19:10hrs. Leg two (Thursday January 21): Service B: Valence, 08:30hrs; SS5: Labatie D'Andaure-St Pierre Sur Doux 1 (25.30 kilometres), 10:13hrs; SS6: St Bonnet-St Julien Molhesabate-St Bonnet 1 (25.67 kilometres), 10:55hrs; SS7: Lamastre-Gilhoc-Alboussiere 1 (21.92 kilometres), 12:20hrs; Service C: Valence, 13:45hrs; SS8: Labatie D'Andaure-St Pierre Sur Doux 2, 15:28hrs; SS9: St Bonnet-St Julien Molhesabate-St Bonnet 2, 16:10hrs; SS10: Lamastre-Gilhoc-Alboussiere 2, 18:05hrs; Service D: Valence, 19:15hrs. Leg three (Friday January 22-Saturday January 23): Service E: Valence, 06:30hrs; SS11: Montauban sur l'Ouveze- Eygalayes (30.42 kilometres), 09:23hrs; Service F: Monaco, 17:27hrs; SS12: Peira Cava-La Bollene Vesubie 1 (18.42 kilometres), 19:15hrs; SS13: Lantosque-Luceram 1 (19.13 kilometres), 19:48hrs; Service G: Monaco, 21:35hrs; SS14: Peira Cava-La Bollene Vesubie 2, 23:20hrs; SS15: Lantosque-Luceram 2, 23:53hrs; Service H: Monaco, 01:05hrs. Prize giving (Saturday January 23): Place du Palais Princier, 11:00hrs.

Top ten entries:

1 Kris Meeke (GBR)/Paul Nagle (IRL) Peugeot 207 S2000
2 Mikko Hirvonen (FIN)/Jarmo Lehtinen (FIN) Ford Fiesta S2000
3 Jan Kopecky (CZE)/Petr Stary (CZE) Skoda Fabia S2000
4 Sebastien Ogier (FRA)/Julien Ingrassia (FRA) Peugeot 207 S2000
5 Juho Hanninen (FIN)/Mikko Markkula (FIN) Skoda Fabia S2000
6 Stephane Sarrazin (FRA)/Jacques Julien Renucci (FRA) Peugeot 207 S2000
7 Nicolas Vouilloz (FRA)/Benjamin Veillas (FRA) Skoda Fabia S2000
8 Toni Gardemeister (FIN)/Tomi Tuominen (FIN) Abarth Grande Punto S2000
9 Bruno Magalhaes (POR)/Carlos Magalhaes (POR) Peugeot 207 S2000
10 Guy Wilks (GBR)/Phil Pugh (GBR) Skoda Fabia S2000

IRC 2WD Cup (selected):

35 Pierre Campana (FRA)/Sabrina de Castelli (FRA) Renault Clio R3
36 Kris Pincen (BEL)/Eddy Smeets (BEL) Renault Clio R3
37 Robert Kubica (POL)/Jakub Gerber (POL) Renault Clio R3
38 Mathieu Arzeno (FRA)/Romain Roche (FRA) Renault Clio R3
51 Harry Hunt (GBR)/George Gwynn (GBR) Ford Fiesta R2

Remaining IRC rounds:

02: Rally Internacional de Curitiba (Brazil): March 04-06 (Gravel)
03: Rally Argentina (Argentina): March 19-21 (Gravel)
04: Rally d'Italia Sardegna (Italy): June 04-06 (Gravel)
05: Geko Ypres Rally (Belgium): June 24-26 (Asphalt)
06: Sata Rally Açores (Portugal): July 15-17 (Gravel)
07: Rali Vinho Madeira (Portugal): August 05-07 (Asphalt)
08: Barum Czech Rally Zlín (Czech Republic): August 27-29 (Asphalt)
09: Rally Principe de Asturias (Spain): September 9-11 (Asphalt)
10: Rallye Sanremo (Italy): September 23-25 (Asphalt/gravel)
11: RAC MSA Rally of Scotland (United Kingdom): October 15-17 (Gravel)
12: FxPro Cyprus Rally (Cyprus): November 04-06 (Asphalt/gravel)
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Frost & Sullivan Sees Malaysia's 2010 Vehicle Sales Rebounding - Predicts 4.5 ...

NewswireToday - /newswire/ - Kuala Lumpur, Malaysia, 01/14/2010 - Frost & Sullivan expects Malaysia's total industry volume (TIV) to rebound in 2010 with a 4.5 per cent growth to a historic high of 555,000 units due to an improved economic outlook and rising consumer sentiment.

     

Mr. Kavan Mukhtyar, Partner & Head of the Automotive & Transportation Practice, Asia Pacific at Frost & Sullivan said that the vehicle sales will also be driven by replacement car buyers.
He added that a substantial number of Malaysians who purchased their vehicles from 2003-2005 may look at replacing their cars in 2010. "Prospective buyers who deferred their purchase in 2009 are also expected to replace their cars in 2010 as the economy recovers," Mr. Mukhtyar said.

He also said that vehicle sales will be aided by the key models launched late last year such as Perodua Alza and Kia Forte. Proton's new C/D segment model, scheduled to be launched this year will also boost vehicle sales growth.

He added that Frost & Sullivan continues to believe that Malaysia's significant young population will provide an impetus for vehicle sales growth in the long term. Mr. Mukhtyar also foresees that the number of first-time car buyers will increase in the next few years and this will be a key growth driver for entry-level cars.

Mr. Mukhtyar said that multi-purpose vehicles (MPV) will be the fastest growth segment, increasing 12.7 per cent year-on-year in 2010 to 68,000 units due to the intense competition among Proton Exora and Perodua Alza.

Passenger cars will be the slowest growth segment at 3.2 per cent year-on-year due to a lack of new mass market models as well as some passenger car customers opting for the entry-level MPVs. However, passenger cars will remain as the biggest contributor to the Malaysian total vehicle sales, accounting for about 75.3 per cent.

Demand for commercial vehicles is expected to increase 5 per cent year-on-year to 52,345 units while 4x4 Sports Utility Vehicles is likely to grow 7.9 per cent year-on-year to 11,210 units.

Mr. Mukhtyar said there will be continued interest and development in electric vehicles and hybrids by carmakers but is expecting negligible demand by consumers in Malaysia in 2010.
Frost & Sullivan expects vehicle sales in 2009 to end 3.1 per cent lower year-on-year at 531,000 units as compared to its earlier forecasted TIV of 501,500 units.

"The better-than-expected TIV for 2009 was due to the Malaysian Government's stimulus package, scrapping incentive scheme for Proton and Perodua and continued strong sales of Perodua's Myvi and Viva and Proton Saga," Mr. Mukhtyar said.

He added that the voluntary scrapping incentive has softened the downtrend in vehicle sales for 2009. He also said that about 31,000 new vehicles were sold in 2009 due to the incentive.
He also noted that vehicle sales in East Malaysia (Sabah & Sarawak) are estimated to have grown by about 3.4 per cent year-on-year in 2009 as compared to a 4.7 per cent decline in Peninsular Malaysia. "In 2009, the commercial vehicles segment increased at 11.5 per cent year-on-year in East Malaysia, reflecting a more robust economy in Sabah and Sarawak due to increased development activities and both States limited exposure to the manufacturing sector," he added.

Mr. Mukhtyar said that in 2009, Proton managed to increase its market share by 1.9 per cent due to sales from Exora in the MPV segment. Perodua continues to maintain its pole position in 2009 as Malaysia's leading carmaker with an estimated 33.4 per cent with Proton following closely behind at 30.4 per cent.

In the non-national car segment, Toyota's market share is likely to decline by 4 per cent to 13.6 per cent in 2009 due to intense competition in the MPV and entry-level mid-sized passenger car segments. Meanwhile, Honda's market share grew by 1.6 percentage points to 8.1 per cent due to the new Honda City launch.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

World Class entry list for inaugural S-WRC season

This year's FIA Super 2000 World Rally Championship (S-WRC) has attracted a better quality entry list than any other championship or international series for this type of rally car.

That is the claim of Marc de Jong, the man responsible for the commercial development of WRC support championships, who told wrc.com the take up for this year's inaugural competition within the WRC was 'fantastic'.

"The S-WRC has a very strong appeal because it is the championship of the future," explained de Jong. "These are the cars that are going to dominate the WRC of 2011, because S-WRC cars form the basis of the next generation of World Rally Cars."

The FIA has already confirmed eight entries for the 2010 series, after the first registration deadline passed last week. But de Jong believes this number could increase to 12 by the final cut-off date of 9 April.

Reigning FIA Junior World Rally Champion Martin Prokop (Ford Fiesta S2000) is one of the biggest names to make the switch to the Super 2000 contest. He will be joined by 2006 Junior Champion Patrik Sandell (Skoda Fabia S2000) and 2006 P-WRC Champion Nasser Al-Attiyah (Ford Fiesta S2000).

Also on the FIA list are last year's J-WRC runner-up Michal Kosciuszko (Ford Fiesta S2000), former P-WRC drivers Eyvind Brynildsen (Skoda Fabia S2000) and Bernardo Sousa (Ford Fiesta S2000) and former WRC manufacturer team drivers Janne Tuohino and Xevi Pons (Ford Fiesta S2000).

"I'm aware of about four others who are close to signing up and confirming," added de Jong. "If all goes to plan, I expect we will have between 10 and 12 entries. In the first year of a championship like this that is a fantastic number."

Skoda and Ford are the only two manufacturers represented in the entries so far, but de Jong is expecting entries from other marques to follow. "I know that Peugeot, Abarth, Proton and MG drivers are among those looking to get into the championship," he added.

In 2008, WRC was covered by 188 countries via 228 broadcasters, with a total audience of over 633 million plus 12 million visitors to wrc.com. 2009 will see a total of 12 rallies staged across the world in Ireland, Norway, Cyprus, Portugal, Argentina, Italy, Greece, Poland, Finland, Australia, Spain and Great Britain. For more information please visit www.wrc.com.
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Mitsubishi Motor Sales of Canada, a Division of Mitsubishi Motors Corporation ...

Tokyo, Jan 15, 2010 - (ACN Newswire) - Mitsubishi Motors Corporation (MMC) announced an unprecedented collaboration by its Canadian unit Mitsubishi Motor Sales of Canada Inc. (MMSCAN) and Hydro-Quebec that will put up to 50 zero-emission all-electric i-MiEV passenger cars on the streets of the City of Boucherville, an independent municipality and a suburb of Montreal, in the largest Canadian project ever fielded to integrate, test, and evaluate all-electric vehicles on urban streets under real-world conditions.

Announced also at the Montreal International Auto Show, the pilot program will expose fleet drivers from Boucherville, Hydro Quebec, and other approved companies to the Mitsubishi i-MiEV all electric minicar, in both fall and winter urban conditions.

"We are very proud to be leading the way to a greener and more sustainable future by developing environment-friendly vehicles, fueled by clean, renewable energy," said Koji Soga, president and CEO of MMSCAN. "Mitsubishi Motors is a leader in electric car development and the i-MiEV represents the pinnacle of our green technologies. In the same sense, Hydro-Quebec and the City of Boucherville are demonstrating their environmental leadership by participating in this unique initiative."

Hydro-Quebec President and CEO Thierry Vandal said that the project is a vital element in the company's commitment to environmental stewardship. "Hydro-Quebec is committed to reducing greenhouse gas emissions by playing a key role in the electrification of transportation. This trial is designed to study the vehicles' charging behaviour, driving experience as well as overall driver satisfaction. It will also allow Hydro-Quebec to evaluate the challenges involved in integrating electric vehicles into its grid."

"Thisis a truly exciting project for the City of Boucherville," said Boucherville Mayor Jean Martel. "We look forward to participating alongside our leading local businesses to help Hydro-Quebec and Mitsubishi gather meaningful data."

About Mitsubishi Motors

Mitsubishi Motors Corporation is the fifth largest automaker in Japan and the fifteenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries.

Throughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president Tomio Kubo to encourage expansion, and continued by his successors. A significant stake was sold to Chrysler Corporation in 1971 which it held for 22 years, while DaimlerChrysler was a controlling shareholder between 2000 and 2005. Long term joint manufacturing and technology licencing deals with the Hyundai Motor Company in South Korea and Proton in Malaysia were also forged, while in Europe the company co-owned the largest automobile manufacturing plant in the Netherlands with Volvo for ten years in the 1990s, before taking sole ownership in 2001.

Source: Mitsubishi Motors

Contact: Mitsubishi Motors Public Relations Department http://www.mitsubishi-motors.com +81-3-6852-4275

Tom Cave to drive a Proton Satria S2000 in 2010

Teenage rally driver Tom Cave, from Aberdovey in Wales, has secured a privately-entered and run Proton Satria Neo Super2000 rally car for selected rounds of the 2010 Intercontinental Rally Challenge. The 18 year-old will receive support from Mellors Elliot Motorsport (MEM), the company which runs the official Proton team and will run alongside, but independent of, the official team, headed by Alister McRae.
 
The news is the result of twelve months of hard work by Tom’s father and manager of the Tom Cave Racing team, Peter Cave. Peter spotted the clear potential of the Proton S2000 car early on and has been working to secure the purchase of the first ex-works car offered by MEM for Tom to use in 2010.
 
The current plan is for Tom to contest one or two events in the UK to familiarise himself with the car prior to undertaking a seven-rally program in the IRC, primarily mainland European events, including Ypres, San Remo and Rally of Scotland. These events would be interspersed with tarmac and gravel tests to give the youngster the best chance of demonstrating his ability and pace in the increasingly popular IRC series, which receives extensive television coverage on pan-European sports channel Eurosport.
 
While many might think that the step from a Group N Ford Fiesta ST to a Super 2000 car could be too great, Peter is confident that it is a step Tom is capable of making. “When Martin Rowe was working with us just over a year ago, he was completely confident that Tom would be capable of driving a four wheel-drive car at a representative pace,” he said. “It has been our objective to get Tom into a four wheel-drive rally car that will form the future of rallying as soon as possible and I am delighted that we have been able to achieve that for this year, with the help and support of Chris Mellors and MEM.”
 
Tom has already demonstrated a maturity and resilience that belie his years; in 2009, he contested ten rallies across Europe, including events forming part of the British and Latvian national championships, the FIA World Rally Championship and the Intercontinental Rally Challenge. He won his class on three of the final four rallies he contested, including Rally Latvia and Rally of Scotland and dominated his class on Rally of Great Britain but lost time when stuck in a ditch.
 
He contested his second Rally of Great Britain before his 18th birthday and just days after legally becoming an adult, finished Rally of Scotland, the finale of the 2009 IRC, in eighth place, a points-scoring position, had Ford been registered for the championship. 
 
Tom is understandably excited by the prospect of taking the wheel of the Proton for at least eight events in 2010. “I still can’t quite believe that I’ll be driving an S2000 Proton this year. I know it’s something that the team had been trying to secure for some time but I didn’t think for a moment that it would happen for this year. For the last few months, I have been working on the basis that I would be driving a two wheel-drive car this year, possibly an R2 or R3 car but this is an incredible opportunity.
 
“Of course, while I’m incredibly excited, I’m also a little apprehensive. I’m not naïve enough to think for a moment that I will be anywhere near the pace of people who have been rallying for almost as long as I have been alive! But cars such as the Proton will form the future of rallying and I can completely understand the concept of getting into one of these cars as soon as possible. It makes complete sense to develop and learn the skills of what I hope will be my trade using the tools of that trade.
 
“Our car will be run independently, still by Davies Motorsport but from within the MEM service area on events that we are contesting as well as the Proton team. To have that support and to be competing alongside a driver like Alister McRae is an amazing opportunity and one that I will make the very most of.
 
“I think the objective for the year will be to learn as much as possible; the way the car behaves and how to drive it, the way an official team like MEM works and the relationships between their drivers and the engineers, gain more experience of rallies I haven’t done and of course, competing in a championship. Because of my age, I wasn’t able to enter any championships last year but I am looking forward to competing against the same drivers over several rallies to see how my performance improves as I learn and understand more.”
 
Many of the finer details are still to be completed but one thing is certain and that is Tom will run his final rally in the Fiesta next week, as he takes the start ramp of the 2010 Rallye Automobile Monte Carlo. The most iconic event in the history of rallying will see Tom’s swansong in the Fiesta that has served him well for the last two years and will be a fitting start to his 2010 season, on the opening round of this year’s IRC.
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Opportunities abound for Thai auto industry as CAFTA brings in new era

For multinational automotive firms as well as Thai and foreign auto parts and component-makers, golden opportunities lie ahead, given that CAFTA is now the world's largest free-trade area with a combined population of 1.9 billion.

China alone has 1.3 billion consumers, while the 10-nation Asean has nearly 600 million people.

Thailand will be among the major beneficiaries because its 40-year-old auto industry is the largest in Asean, with a combined capacity to produce more than 1 million vehicles per year.

One-tonne pickups and ecologically friendly cars will be the winners due to advantages gained from economies of scale.

However, Wallop Tia-siri, director of the Thai Automotive Institute, told Krungthep Turakij that the retail prices of automobiles in Thailand were unlikely to be reduced significantly as a result of CAFTA.

"There are cost reductions resulting from the exchange of parts and components among production facilities within Asean under the zero-tariff scheme, but such a benefit is not passed on to consumers.

"On the other hand, the scheme will likely increase the auto industry's profits," he said.

Suthad Setboonsarng, a Thailand Trade Representative and former senior official of Asean, told The Nation that the price of a compact car in the range of Bt400,000-Bt500,000 should be reduced by about Bt20,000 per unit.

"In principle, producers' costs are 5 per cent lower due to the zero-tariff scheme, so their tax saving is about Bt20,000 per unit if the unit cost is Bt400,000 exclusive of excise and other taxes.

"From now on, we should closely monitor whether consumers benefit from the CAFTA scheme in prices. Governments have to part with import-duty revenues to help promote free trade in the hope that overall sales will increase due to cheaper prices and that manufacturing and investment will further expand as a result of this scheme," said Suthat.

Suparat Sirisuwanangkul, assistant senior managing director of Toyota Asia Pacific Engineering and Manufacturing, said auto prices in the region were stable in the wake of CAFTA's implementation.

He denied that there had been collusion among auto firms to fix prices.

"Sales of vehicles imported from other Asean countries are still very small. Both Toyota and Honda earlier faced failures when importing some models from Indonesia for sale in the Thai market.

"Competition in the auto sector is intense, so we cannot overprice. The Commerce Ministry also has a database on our production costs. I could say that consumers are treated fairly," he said.

Suparat said Toyota currently imports Innova and Avanza models from Indonesia, but the sales volume of these multipurpose vehicles (MPVs) in Thailand is relatively small.

At this stage, consumer tastes in Asean markets remain diverse, with pickups widely popular in Thailand, sedans in Malaysia and MPVs in Indonesia.

"If we export pickups to Malaysia or Indonesia, sales will be low while the transport cost will be relatively high. When other costs such as after-sales expenses or spare parts inventory are included, the selling price will still be high despite the zero import tariff," he said.

Pitak Peukthisarikorn, executive director of Honda Automobile (Thailand), said the Kingdom is Honda's largest production base in Asean with an annual capacity of 240,000 vehicles, followed by its Indonesian plant, which has an annual capacity for 60,000 units.

"Honda in Thailand produces vehicles for most market segments. In Vietnam, we produce only the Civic and CR-V models but the volumes are smaller than those in Thailand, which also exports some models to markets outside Asean," he said.

At present, the Honda Fleet, a 1,500cc MPV, is the only model imported by Honda from Indonesia for sale in the Thai market under the zero-tariff scheme. Its price ranges from Bt890,000 to Bt1.07 million.

So far, a total of 11 brands have joined the zero-tariff scheme, including Toyota (Innova and Avanza models), Malaysia's Proton, Ford Focus (via the Philippines), Mazda (via the Philippines), Nissan and Kia.

Meanwhile, Prasartsilp On-atta, president of the auto-parts producers' association, warned that Vietnam, which will join the zero-tariff scheme in 2015, would become a formidable competitor for Thailand in the auto industry.

"Once Vietnam is fully integrated into Asean, it will be very attractive for foreign investment because of lower wages and abundant natural resources.

"Vietnam is also physically closer to Japan than Thailand, so transport costs for parts and components are lower. I think Vietnam will catch up with Thailand in this industry in the next decade," he said.

Regarding China, industry sources said the major Chinese auto firms had chosen Malaysia as the gateway to penetrate the vast Asean market largely because competition in Thailand is much fiercer and Japanese auto giants are already predominant.

Malaysia is being positioned as the production base for China' auto firms, so that its vehicles could enjoy zero tariffs when shipped to Thailand and other Asean markets.

"In fact, Chinese auto-makers wanted to tap the Thai market a long time ago, but it was not possible due to the strong Japanese brands here. Thai customers are also very selective in terms of quality.

"In addition, we have relatively high environmental and emission standards," he said.

Earlier, China Youngman Vehicle Group hired Proton of Malaysia to produce a passenger-car model with an annual output of 30,000 units for export to the Chinese market.

Using locally made parts and components, the vehicles can also be exported to other Asean markets under the zero-tariff scheme.

 

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Car Industry To Grow By 4.5 Per Cent This Year, Says Frost & Sullivan

January 14, 2010 15:06 PM

Car Industry To Grow By 4.5 Per Cent This Year, Says Frost & Sullivan

By: Ramjit

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KUALA LUMPUR, Jan 14 (Bernama) -- Malaysia's motor vehicle total industry volume (TIV) is expected to rebound strongly this year with a 4.5 per cent growth to a historic high of 555,000 units due to improved economic outlook and rising consumer sentiment, said Frost & Sullivan.

Its partner and head of the automotive and transportation practice for Asia Pacific, Kavan Mukhtyar, said the sales would also be driven by replacement car buyers amid low interest rates.

He said multi-purpose vehicles (MPVs) would be the fastest growth segment, increasing by 12.7 per cent year-on-year in 2010 to 68,000 units due to the intense competition among Proton Exora and Perodua Alza.

"Passenger cars will be the slowest growth segment at 3.2 per cent year-on-year due to lack of mass market models as well as some passenger car customers opting for entry-level MPVs.

"However, it will remain the biggest contributor to Malaysia's total vehicle sales accounting for about 75.3 per cent," he said at a media briefing here on Thursday.

Mukhtyar said demand for commercial vehicles was expected to increase five per cent year-on-year to 52,345 units, while 4x4 sports utility vehicles were likely to grow by 7.9 per cent year-on-year to 11,210 units.

He said in case interest rates rose substantially there could be a direct impact on vehicle sales.

"The other downside factors are global economic uncertainties, lower external demand and the impact of new fuel subsidy," he said.

Mukhtyar said there would be continued interest and development in electric vehicles and hybrids by car makers but demand was expected to be negligible this year.

"If the price of hybrid is almost equal to a regular car than the take-up could be high, but right now it is not possible.

"The market for hybrid cars will be substantial when the price difference is less than 10 per cent," he said.

He expected vehicle sales for 2009 to fall by 3.1 per cent compared with 2008 at 531,000 units versus an earlier forecast of 501,500 units.

"The better-than-expected TIV for 2009 was due to the government's stimulus package, scrapping incentive scheme for Proton and Perodua and continued strong sales of Perodua's Myvi, Viva and Proton Saga," he said.

Mukhtyar said the voluntary scrapping incentive has softened the downtrend in vehicle sales in 2009 as about 31,000 new vehicles were sold due to the incentive.

Although the scrapping incentives had ended, he said, the government may put such permanent "end-of-life" policy for vehicles amid commitments to reduce emission and use more environmentally-friendly products.

"It may not happen in 2010, but over the next five years such a policy will be put in place and consumers will be encouraged either directly or via higher taxes to replace their older vehicles," he said.

Last year, he said, Proton managed to increase its market share by 1.9 per cent due to sales from Exora in the MPV segment.

Perodua, however, continued to maintain its pole position in 2009 as Malaysia's leading carmaker with an estimated 33.4 per cent with Proton following closely behind at 30.4 per cent, he said.

"It will be an interesting competition between Alza and Exora as in terms of pricing and features both are equally attractive," he said, when asked whether Perodua would continue to hold its position as the market share leader.

He said both Proton and Perodua's market shares could be at par in 2010.

Mukhtyar said in the non-national car segment, Toyota's market share was likely to decline by four per cent to 13.6 per cent in 2009 due to intense competition in the MPV and entry-level mid-sized passenger car segment.

Meanwhile, Honda's market share grew by 1.6 percentage points to 8.1 per cent due to the new Honda City launch, he said.

-- BERNAMA

We provide (subscription-based)  news coverage in our Newswire service.

Lowest price car in Australia

The Proton S16 - earlybird pricing before Chinese onslaught.

>> SEE US IN ACTION: video road tests

IN a move designed to steal the thunder of cheap Chinese passenger cars, Proton has hit the market with its new S16 priced at $11,990 drive away.

This gives the Malaysian-built sedan the lowest price tag in the Australian new car market. It went on sale on December 1 in GX grade only with higher specification cars following next year.

The four-door sedan is powered by the same 1.6-litre, twin-cam engine in other Proton models. And far from being a bare bones model, the S16 GX scores plenty of kit including AM/FM/CD audio system, power steering, airconditioning, remote central locking with immobiliser and alarm, drivers SRS airbag and seating for five and five cup holders.

Proton is pitching S16 as an entry level car that will appeal to used car buyers. The company says S16 redefines the entry level new car. That could be right because it’s the only new four-door sedan available in Australia for less than $16,000 and will outpoint low-cost hatches and three-door models by offering a 1.6-litre engine and generous equipment levels.

Proton dealers have jumped at the opportunity provided by the S16 with orders going out for two months.

The company will use Miss Universe Australia 2009 winner Rachel Finch as “the face” of the new Proton S16.

Two 'family' car theft syndicates busted

PETALING JAYA: It was a family affair for two house break-in syndicates crippled by police in the Klang Valley last week.

The first syndicate was headed by two brothers and the other by a couple. Both syndicates are believed to have been operating since October last year.

Sources said the syndicates would not only break into houses and cart away jewellery and electrical appliances but also the vehicles parked in the porch.

The valuables were disposed of to buyers almost immediately after each break-in to avoid police detection while the vehicles were sold to individuals and car theft syndicates at very low prices.

It is learnt police, following a tip-off, had been monitoring the suspects' movements before closing in on them last week.

A police source said the first syndicate was busted at a budget hotel in Petaling Jaya at midnight by a Federal police Criminal Investigation Department team.

The syndicate was crippled with the arrest of the younger of two brothers running it and two gang members. The older brother escaped during the raid.

The bust was made less than five hours after the gang broke into a house in USJ-Subang Jaya and made off with electrical appliances, valuables and cash.

Police also seized two cars — a Proton Waja and a Honda Civic — which were stolen in Kajang and in USJ recently.

Checks on the suspects showed they had previous criminal records, including for house break-ins.

Police are now in the midst of tracking the complainants to assist in investigations into the break-ins.

Meanwhile, in an unrelated operation a few days later, police crippled another house break-in syndicate with the arrest of a couple at a fast food outlet in Damansara.

The couple led police to a house in Sentul where they seized electrical appliances and other valuables worth nearly RM20,000, a bunch of car keys and house break-in paraphernalia. Two people in the house were arrested.

No car seizures were made from the second syndicate, but police believe the stolen vehicles were disposed of to a third party soon after the break-ins.

It is not known how many cases exactly are linked to the two syndicates.

MOTOR INDUSTRY: Reinstate cash-for-clunkers

THE Proton Edar Dealers Association Malaysia (PEDA) is positive about this year's outlook despite its many challenges.

WALK THE TALK: Government needs to go the extra mile to help new car buyers — Filepic

Proton car sales will be affected this year by three government policies – spillover from the Second Financial Stimulus introduced last March; the revised National Automotive Policy announced last October; and Budget 2010.

This year will be tough without stimulus or direct policies to support Proton car sales despite the economy being not fully recovered.

However, PEDA is positive about car sales from support extended by Bank Negara and members of the
Association of Banks in Malaysia.

Since last July, PEDA has had discussions with both bodies on the approval and disbursement period for car hire-purchase loans, and to alert the authority of any increase in rejection percentage or discrimination on buyers' loan applications.

Proton’s car sales were badly hit in the first quarter of 2009 when the rejection rate for buyers was at an
alarming 70 per cent.

They improved after PEDA met with Bank Negara and the banks. Since then, car loan approval and  disbursement are made within 36 hours. Proton car sales has been positive and encouraging, despite the
recession. With continued support from Bank Negara and the banks, PEDA is confident that 2010 will be
a promising yet challenging year.

The Second Financial Stimulus helped to sustain car sales in 2009 despite the recession through a policy to scrap cars of 10 years or more with a RM5,000 voucher to buy a Proton car which attracted 32,000  applications.

However, funds for the scheme were exhausted by October, seven months after its launch, resulting in only about 15,000 applications being approved while the rest were given an alternative, less attractive offer, which led to a drop of 30 per cent in bookings, especially for Proton Saga.

On top of this, the RM5,000 vouchers for scrapped cars had only been partially disbursed by the government
to dealers, further exhausting the latter's working capital.

Momentum gained from the scrapping programme will be lost without any continuity, especially with Malaysia's relatively high average vehicle age. There are two ways that may positively affect the Proton ecosystem from the revised National Automotive Policy.

Firstly, the phasing out of imported used parts and components, including the half-cut, will strengthen the automotive ecosystem. Though cheaper, they come without warranty and many customers have been cheated when the parts they bought did not work easily.

However, the phasing out mechanism is still unknown. The discontinued mandatory annual inspection for vehicles of 15 years and above would have become a platform to ensure a minimum safety standard for Malaysia's relatively high average vehicle age.

The public may have changed or upgraded their cars once they were made aware of their vehicle's condition via the mandatory checks.

This in turn, would support new car sales. Steps can also be taken to do away with various charges from becoming a burden to the public, such as allowing insurance or finance companies to pay for car inspections which is in their best interest to protect their exposure.

In the UK, independent workshops can register with the authority to conduct inspections. In Malaysia,

Puspakom should not be made the only centre for inspection if mandatory checks are re-introduced.

PEDA urges the government to plough back some of the revenues collected from the automotive industry
into the system by re-introducing the car scrapping policy.

With RM5,000 per car collected through sales tax and excise duty, the government would get about RM750 million annually from Proton domestic car sales.

With an average total industry volume of 500,000 passenger car sales a year, the gross revenue contributed
by this sector is estimated at RM2.5billion (from sales tax and excise only assuming a RM5,000 average, excluding other indirect contributions).

Except for R&D grants, revenue collected is not ploughed back into the ecosystem to address our stagnant
and saturated market.

Malaysia registered almost the same number of passenger car sales in Thailand although our population
is four times smaller.

Our population is also smaller than Indonesia and the Philippines, but we registered higher sales than
both countries.

If we do not address this issue now, we will not be able to sustain our future sales.

Armin Baniaz Datuk Pahamin
President
Proton Edar Dealers Association Malaysia (PEDA)

FEEDER BUSES FOR THE LRT

After the Government announced that it was going to spend millions of ringgit on the extension of certain LRT lines, everybody is clamoring for the LRT to come to their places. It seems that everyone wants the LRT at his doorstep.

If you study the present set-up of the LRT, it is really not necessary to extend any line any more.

What is required now, and urgently, is to expand and improve the service of the FEEDER BUSES.

Take Subang Jaya for example. There should be a bus service for every Section.

It is not necessary to have the buses running through every street; but its route should be designed as such that no house is further than say 500 to 1,000 meters from the nearest Bus Stop. Thus, everybody can walk to the nearest Bus Stop, and in 15 minutes or so he will be on the LRT train.

The bus for each section should go straight to the Train Station.

The service should be such that any passenger/resident is able to travel from any Section to the Train Station not more than 15 minutes.

During the peak hours of 6-9 a.m and 5-7 p.m, the buses should pass every bus stop not longer than every 10 minutes.

In the long run, the introduction of the Feeder Bus Service will cost much, much less than extending the LRT lines.

The total cost for Feeder Bus Service is also than less than the cost of preparing car parks.

The Feeder Bus Service can be implemented immediately, or as soon as the buses are made available.

This same plan can be applied to Cheras to Maluri Station; Ampang to Ampang Station; Damansara Heights to Bangsar Station, and many others. Indeed every crowded resiential area can nbe covered by the feeder bus service.

If the Feeder Bus Service is fully implemented, then, we can stop all the bus services from residential areas to the city. For example, there should not be buses from Cheras or Subang Jaya to the City Center. By this, there will b ;less buses on the streets of Kuala Lumpur.

Sandy Parr

11.01.10

Proton moves closer to consolidating plants

Proton Holdings Bhd (5304) expects to complete a feasibility study on the consolidation of its car manufacturing plants by the end of the year.

The national carmaker has two plants in the country: in Shah Alam, Selangor, and Tanjung Malim in Perak. It is understood that the plan is to relocate the Shah Alam plant to Tanjung Malim where the facility occupies 518ha, five times larger than the former. The Shah Alam plant can produce 230,000 cars a year, while that in Tanjung Malim can make one million. Talk of consolidating the two plants first surfaced during the stewardship of Tan Sri Tengku Mahaleel Tengku Ariff, who was the chief executive officer until July 2005. On Proton’s latest offering, the Exora, chief executive officer Datuk Syed Zainal Abidin Syed Mohamad Tahir said it had secured 38,000 bookings and that 24,000 units were already on the road. Another 2,300 units have been sold in the Asean region, outside Malaysia. He was speaking at a press conference after launching Proton’s Family Day at the Shah Alam plant site last Saturday. The event was also attended by Proton adviser Tun Dr Mahathir Mohamad and chairman Datuk Mohd Nadzmi Salleh. The Exora is sold in three Asean markets apart from Malaysia, namely Singapore, Thailand and Indonesia. It is set to be launched in the Middle East in the second quarter of this year. Tun Mahathir, meanwhile, said that one of Proton’s achievements this year would be its participation in the Geneva Motor Show in March.“This signifies that we have come of age … It will be the first time that the Proton logo will be displayed in such a core show. We won’t tell you what car we will be showcasing,” Syed Zainal Abidin said.