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MALAYSIA AUTOMOTIVE INDUSTRYTOWARDS SUSTAINABILITY

M. MADANI SAHARICEO, MAI

NAP 2014Malaysia as regional hub for Energy Efficient Vehicles (EEV) with high technology uptake among industry players for domestic & international export.

Investment

Hub for Energy Efficient Vehicles

Market Expansion & Outreach

Manufacturer & After Sales Managing vehicle car price

Supply Chain Development

Global Efficiency and Effectiveness

Safety, Security & Environment

Whole Type Vehicle Approval Anti Theft Telematics

Human Capital Development

Adequate & competent manpower

Technology & Engineering

In line with Latest Technology

DIRECTION

Carbon Reduction Fuel Efficiency Preserving Natural Resources

STRATEGIES

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NAP 2014 as an ENABLER TO GROW. Complete the local eco-system through domestic

direct investment. “Missing linkages” are strategic industries.

The key strategic areas are such as: Power train, transmission and related control

system; Die set and Mould base; Aluminum and Other Non Ferrous Casting Design engineering and prototyping; Vehicle, sub-system and component testing; Automotive grade steel; and Engineering Plastic.

BACKGROUND

MANUFACTURERS

- Plastic Moulders- Extruders- Forgers- Pressworks- Foundries- Diecasters- Machining- Rubber Moulders

MAJORASSEMBLERS

MANUFACTURING SECTOR

SUBASSEMBLERS

SUPPORTIVE SECTOR

TOOLDESIGN

MACHINESDESIGN

INTERMEDIATE SECTOR

HEAVYFORGERS

HEAVYCASTINGS MACHINE BED

MACHINE PARTS

LARGE MOULD BASES

TOOLS, DIES& MOULDSMAKERS

MACHINESMAKERS

PRIMARY SECTOR

ROLLINGMILLS

STEELREFINERS

NON FERROUSSMELTER

STEEL BARS & PLATES

ALUMINIUM

BRASS ETC

PETROCHEMICALSMELTERS

RESOURCE SECTOR

NATURALRESOURCES

IRON O

RE

OIL

PLASTIC

MATERIALS

WROUGHTIRON

BIL

LET

S

DESIGNERSENGINEERING

DESIGNERSPRODUCT

DESIGNERS

AUTO MANUFACTURING MISSING LINKAGES

MISSING LINKAGES

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MISSING LINKAGES.

The key strategic areas are such as: Power train, transmission and related control

system; Die set and Mould base; Aluminum and Other Non Ferrous Casting Design engineering and prototyping; Vehicle, sub-system and component testing; Automotive grade steel; and Engineering Plastic.

BACKGROUND

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NAP 2014 as ENABLER to GROW.

Strengthen competitiveness of local automotive industry Supply chain development – Process (Method,

Machine, Material, Management and Money)

Human Capital development – Man

Technology Development – General, Basic and Specific for Process and Product.

BACKGROUND

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ROADMAPS IN NAP 2014

There are 6 roadmaps developed to complement the execution of the NAP 2014. These roadmaps are namely: 1. Malaysia Automotive Technology Roadmap (MATR)2. Malaysia Automotive Supply Chain Development

Roadmap3. Malaysia Automotive Human Capital Development

Roadmap4. Malaysia Automotive Remanufacturing Roadmap5. Malaysia Automotive Authorized Treatment Facilities

(ATF) Framework6. Malaysia Automotive Bumiputera Development

Roadmap

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What is CENTRAL to NAP 2014 and GROWTH?

Energy Efficient Vehicle. Power train technology – Refer to EEV slide. Related technology – Material (Lighter and yet

stronger)Aluminum, MagnesiumUltra High Strength Steel (Laser welding, Hot

stamping …)Higher electronic integrationDesign (less resistant, aero dynamics)

BACKGROUND

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What is CENTRAL to NAP 2014 and GROWTH? Green Automotive Lifecycle. Refer to Auto Lifecycle

slide. Manufacturing sector - Green process (lower

green gas, energy optimization..) After market – Refer to Aftermarket slide

Recycling, Remanufacturing, Regulated 4S centers.

Safety Malaysia is a WP29 member. Gradual implementation of the UN Regulation WVTA by 2015.

BACKGROUND

NAP 2014: Target 20202020 As at Dec 2014

Total Industry Volume (TIV) 1,000,000 units 666,465 units

Exports of Vehicles 150,000 units 21,040 units

Exports of Components RM 25 billion RM 14.2 billion

Employment 150,000 jobs 21,072 jobs

Supply Chain Development

Level 5: 180 companiesLevel 4: 330 companiesLevel 3: 430 companies

Level 5: 5 companiesLevel 4: 33 companies

Level 3: 277 companies

Note: Level 5: Product Design Capable, Level 4: Process Design Capable,

Level 3: Statistically Stable Process10

RM 11.5bworth of investment

8 OEMsInvestment from

332kof planned capacity

RM 4.1bworth of investment

8 OEMsInvestment from

70kof actual capacity

Manufacturing Related InvestmentApproved Investment

Realized Investment

Investments started in 2013 Expected completion by 2018

After Sales & Services Related InvestmentApproved Investment Realized Investment

RM 2.6bworth of investment

RM 0.8bworth of investment

Investment from 6 CompaniesIn the areas of

• Automotive Design;• Advance Material Development;• Restoration;• Motorsport;• Distribution, After Sales & Services;• Training;• Education;• R&D; and• Remanufacturing

Investments started in 2013 and expected completion by 2017

Achievement as at Dec 2014: Investments in 2013 and 2014

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• Total of 21 projects, RM120 Million in R&D.• And 4 projects already commercialized.

Achievement as at Dec 2014: Technology Development

Better Competitiveness

Reduce Cost Improve Quality

Enhance Productivity Improve Efficiency• Advanced Electrode and Electrolytes

for Li Ion Battery• Battery Management System

• Li Ion Battery Module Packing• Automotive Composites

• Bus Tracking System• Modular E-Bus Driveline System• Market Intelligence & Technology

Assessment• Li-Ion Manufacturing Scale Up

• Plastic VMould Design• Flexible Roll Forming• 3R System• Lightweight Plastic Glazing

• ATM Diecasting• Tool Wear Prediction

• Plastic VMould Process

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Achievement as at Dec 2014: Employment

5,538Industry Led Professional

Certificate (IPC)

1,764Automotive Industry

Certified Engineer (AICE)

668Automotive

Apprenticeship (AA)

105Customized Company

Wide HCD (C-HCD)

TALENT DEVELOPMENT

8,075

MAI’s HCD Programme

12,997Direct Recruitment

from Industry

JOBS CREATION

21,072TOTAL OF

With salary of 25% above industry average

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53ASEP

Companies

277LPS Companies

2,250Trained

Workforce

• Improved Productivity: 21.5%• Cost Saving: RM 601.3 Million

• Lean Production System (LPS) programme was developed under the platform of Malaysia-Japan Economic Partnership Agreement (MAJEPA)

• ASEP was developed under the platform of Malaysia- Australia FTA(MAFTA)

Achievement as at Dec 2014: Supply Chain Development

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Bumiputera Automotive Business Opportunity Workshop (BumiAUTO)

Bumiputera Motorcycle Dealership(BMD)

Bumiputera Workshop

Development & Transformation

(BWTP)

100 companies

5 companies

150 companies

Improved Revenue of RM 83.6 Mil

Achievement as at Dec 2014: Bumiputera Development

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Achievement as at Dec 2014: Car Price Reduction (CPR)

3% 2016

2015

7% 2013

5%

2014

5%

2017

5% In 2013, CPR

achieved 4.97% reduction.

• In 2014, CPR achieved 7.01% reduction• This reduction has benefited more than

81.5% of passenger vehicle sales in 2014.

As at May 2015, 4.6% reduction

16.58%ACHIEVEMENT TO DATE:

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2015 2018 20252020

EURO 4 RON97 (Petrol)

EURO 4 RON95 (Petrol)*

EURO 5(Diesel)*

EURO 5 RON95&97 (Petrol)*

2014

EURO 5 Diesel

• In 2014, 13 stations started the sales of Euro 5 Diesel in southern Malaysia.

• From 3rd quarter 2015, roll out of EURO 5 diesel to nationwide.

Euro 4/5 Introduction Timeline

Diesel Euro 5 Rollout

Achievement as at Dec 2014: Euro 4/5 Implementation

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* Supply ability from domestic refinery

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THANK YOU