KUALA LUMPUR: A review of the National Automotive Policy (NAP) will be announced in mid-2018, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
The revised NAP will focus on mobility, next generation vehicles, big data, lifestyle and connectivity.
He also said the country’s energy efficient vehicles (EEVs) penetration is expected to increase 60 per cent in 2018 from 52 per cent last year. The local EEV production had increased from 247,912 units in 2016 to 308,807 units last year.
“The continuous growth signals growing awareness for EEVs within the Malaysian automotive sphere,” he said at a briefing updates on the automotive industry 2017 and outlook in 2018, here, today.
Mustapa added that the increase in the EEV penetration was attributed to the support and participation of government institutions, automotive original equipment manufacturers (OEMs) and vendors as well as the public.
“EEV penetration had increased for fourth consecutive year, reaching 52 per cent of vehicles sold in Malaysia in 2017,” he said, adding that the figure had surpassed the government’s 50 per cent target.
Mustapa said the total industry volume (TIV) is expected to increase two per cent this year on continuos holistic growth in the automotive market.
“Malaysia is a matured automotive market. More people own cars here compared to other Asean countries,” he added.
Malaysia Automotive Institute (MAI) chief executive officer Datuk Madani Sahari said the current EEV penetration was encouraging as new model launches nearly feature EEVs.
“Based on our internal data, of the expected 70 new car launches this year, about 95 per cent are EEV models.
“EEVs accounted for about 90 per cent of the total 58 cars launches last year. Hence, the EEV penetration will increase this year,” he said.
Madani said the 80 per cent local EEV penetration by 2020 is a realistic target, citing that the automotive industry is gradually growing holistically.
MAI expects higher total production volume (TPV) of four per cent compared to the TIV growth of two per cent this year.
“We forecast higher exports in 2018 compared to last year. Therefore, there will be more production than domestic sales in Malaysia,” he said.
Madani said imported cars contributed between eight per cent and 10 per cent of the total TIV in the past years.