Folks,
Today, I attended a short briefing on National Automotive Policy (NAP), organized by a securities company, M&A Securities Sdn Bhd at Hilton Hotel, Kuala Lumpur.
This is a brief summary of the session.
Two speakers presented their views on the NAP. The first presentation title "Auto Sector" was delivered by Ms Rosnani Rasul, Head of Research at M&A Securities and the second presentation was delivered by Mr Asrulnizam Addrus, Head of Strategic Research from the Malaysia Automotive Institute (MAI), on behalf of his chief executive officer, Mr Madani Sahari.
The First Presentation
In her first presentation, Rosnani broadly overview the Malaysian automotive industry by discussing the total vehicle in Malaysia, as at end-2013, in the following table.
Total Vehicle in Malaysia (as at end-2013)
Source: M&A Securities
And she went on to discuss the top regional brand:
Source: M&A Securities
And as for the top global brand, here is what she listed:
Source: M&A Securities
As for the sector, she rated "overweight", and forecast that the total industry volume to grow by 2% year-on-year to reach 670,000 units by end of this year.
The Second Presentation
The second presentation talks about NAP in general.
As a background, the first NAP was introduced on March 22, 2006. Basically, all manufacturing licence were frozen during this time.
The second NAP was launched on Oct 28, 2009. The manufacturing licence was given to luxury and premium automobile marker whose car is above RM150,000 and engine capacity above 1,800c.
The third NAP was approved in 2013, but the launch was delayed to Jan 20, 2014. The main thrust is to liberalize the automotive sector and strengthen the energy-efficient vehicle (EEV) segment.
Asrulnizam also spoke on the hot topic of approved permits (AP), and he thinks that it should be abolished if it does not contribute to industry development.
In the second NAP, the government specified the termination of open AP by Dec 31, 2015 and franchise AP by Dec 31, 2020. However, the international trade and industry minister Datuk Mustapa Mohamed was later reported to have said that an in-depth study will be undertaken to assess the impact of this termination on Bumiputera participation in the automotive industry.
In another word, the intention to terminate AP is now put on "hold" and will only be reviewed, pending the study to be undertaken by an independent entity.
At this juncture, MAI wants to do away with the AP as it see the AP to be irrelevant in today's context and moving forward. However, the minister wants a neutral view (because MAI is an organization reporting directly to the minister), and will commissioned a study on this hot topic.
As for the target, Asrulnizam is hoping the automotive sector to contribute 10% to the country's gross domestic product (GDP) by the year 2020. Currently, he said, the GDP contribution of this industry stood at 3.2%.
Today, I attended a short briefing on National Automotive Policy (NAP), organized by a securities company, M&A Securities Sdn Bhd at Hilton Hotel, Kuala Lumpur.
This is a brief summary of the session.
Two speakers presented their views on the NAP. The first presentation title "Auto Sector" was delivered by Ms Rosnani Rasul, Head of Research at M&A Securities and the second presentation was delivered by Mr Asrulnizam Addrus, Head of Strategic Research from the Malaysia Automotive Institute (MAI), on behalf of his chief executive officer, Mr Madani Sahari.
The First Presentation
In her first presentation, Rosnani broadly overview the Malaysian automotive industry by discussing the total vehicle in Malaysia, as at end-2013, in the following table.
Total Vehicle in Malaysia (as at end-2013)
|
Rank
|
Marque
|
Total
Industry Volume (TIV)
|
Market
Share
|
|
1
|
Perodua
|
196,071
|
30%
|
|
2
|
Proton
|
138,753
|
21%
|
|
3
|
Toyota
|
91,185
|
14%
|
|
4
|
Nissan
|
53,156
|
8%
|
|
5
|
Honda
|
51,544
|
8%
|
|
6
|
Mitsubishi
|
12,348
|
2%
|
|
7
|
Hyundai
|
12,217
|
2%
|
|
8
|
Ford
|
10,660
|
2%
|
|
9
|
Volkswagen
|
9,538
|
2%
|
|
10
|
Mazda
|
9,917
|
1%
|
And she went on to discuss the top regional brand:
|
#
|
Country
|
Top Manufacturer
|
Market Share
|
|
1
|
Malaysia
|
Perodua
|
30%
|
|
2
|
Indonesia
|
Toyota
|
29%
|
|
3
|
Thailand
|
Toyota
|
34%
|
|
4
|
South Korea
|
Hyundai
|
40%
|
|
5
|
Japan
|
Toyota
|
29%
|
And as for the top global brand, here is what she listed:
|
#
|
Region
|
Top Manufacturer
|
Market Share
|
|
1
|
Europe
|
Volkswagen
|
25%
|
|
2
|
America
|
Ford
|
10%
|
|
3
|
Asia Pacific
|
Toyota
|
12%
|
|
4
|
Africa
|
Toyota
|
15%
|
As for the sector, she rated "overweight", and forecast that the total industry volume to grow by 2% year-on-year to reach 670,000 units by end of this year.
The Second Presentation
The second presentation talks about NAP in general.
As a background, the first NAP was introduced on March 22, 2006. Basically, all manufacturing licence were frozen during this time.
The second NAP was launched on Oct 28, 2009. The manufacturing licence was given to luxury and premium automobile marker whose car is above RM150,000 and engine capacity above 1,800c.
The third NAP was approved in 2013, but the launch was delayed to Jan 20, 2014. The main thrust is to liberalize the automotive sector and strengthen the energy-efficient vehicle (EEV) segment.
Asrulnizam also spoke on the hot topic of approved permits (AP), and he thinks that it should be abolished if it does not contribute to industry development.
In the second NAP, the government specified the termination of open AP by Dec 31, 2015 and franchise AP by Dec 31, 2020. However, the international trade and industry minister Datuk Mustapa Mohamed was later reported to have said that an in-depth study will be undertaken to assess the impact of this termination on Bumiputera participation in the automotive industry.
In another word, the intention to terminate AP is now put on "hold" and will only be reviewed, pending the study to be undertaken by an independent entity.
At this juncture, MAI wants to do away with the AP as it see the AP to be irrelevant in today's context and moving forward. However, the minister wants a neutral view (because MAI is an organization reporting directly to the minister), and will commissioned a study on this hot topic.
As for the target, Asrulnizam is hoping the automotive sector to contribute 10% to the country's gross domestic product (GDP) by the year 2020. Currently, he said, the GDP contribution of this industry stood at 3.2%.
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