Motoring - 13 December 2015

SUNDAY STAR, 13 DECEMBER 2015

special

Year-end auto industry review

Motoring

2 motoringSUNDAY STAR, 13 DECEMBER 2015

At the launch of the Volvo XC-90, which is planned to be assembled locally and exported.

Car buyers should take advantage of promotions available as car prices may be expected to rise in the coming year.

Lower price unlikelyONE of the impacts of the Trans-Pacific Partnership Agreement and Asean Free Trade Agreement with Japan and Australia, which will take effect in 2018, is the gradual reduction of import duty.

Some are saying that one of the benefits will be cheaper cars from the participating countries.

However, a few analysts disagree, stating that Malaysia has already been enjoying zero-tax import duty for cars from Asean.

The prices of cars are made up of the ex-factory price, sales tax, excise duty and profit margin.

Sales tax stands at 10% while excise duty for non-national cars under 1,800cc is set at 75% for complete knock-down or complete built built-up units.

However, some car companies are already enjoying lower excise duty (between 40% and 50% reduction) due to the use of local content.

The current excise duties range

from 30% to 50%.Even if the excise duties are

lowered, another factor that the Government has no control over is the profit margin of car companies.

Right now, some car companies are getting a good profit margin.

Some cars are given the tax incentives, but comparing the prices with the cars in the country of origin, you can still see an increment of 40% in price.

“Car companies might want to protect their own profit margin,

THE sales of vehicles or total industry volume (TIV) this year might not be able to hit 670,000 units – a target set by the Malaysian Automotive Association.

Although sales in October jumped to above 60,000 units, it happened after a two-month decline.

The market needs to sell more than 64,000 units of vehicles in November and December for the TIV to hit the target, which seems difficult as the market winds down for the year end.

However, car companies are not giving up yet. There is still an abundance of offers and promotions in the market, and with warnings about inevitable price hike next year due to the weakening of the ringgit, now is the best time for you to get your new vehicle with the best bargain.

With a more mature crowd, waiting for the new year to buy a new car seems to be a thing of the past. The market now looks more into the service history and mileage of a vehicle rather than the difference of a few months.

As for the performance of each brand, Perodua continues to strengthen its position, with a solid 19.5% improvement in October compared with the month before. From January to October this year, Perodua has sold 174,832 vehicles.

Trailing far behind is Proton at 86,862 units. Honda is third at 74,915 units while Toyota is following closely at 71,097 units.

Bear in mind that Toyota offers commercial vehicles and Proton receives a lot of sales from fleet operators. Without those two, their numbers would have slid lower.

The sales performance of vehicles next year will be

determined solely by the economic health of the ringgit.

Currently, sales people are already complaining about how long it takes to get loan approval – a strong sign that financial houses are starting to tighten up in giving out car loans. Perodua might experience a slow-down in sales too but industry analysts are confident that the brand will survive the wave and still top the sales chart.

“The Perodua brand has been seen as a safe purchase among Malaysians as many will not think twice about buying a Perodua,”

Now is the timesays an industry analyst.

With plans to introduce new models, Perodua will not be quiet next year either. A media trip to Tokyo a few months ago proved that the company wants to do something exciting – such as to introduce a low-volume convertible assembled in Malaysia.

The other national player Proton is heard to be launching three new models next year.

“That is not the smartest move but better that than having to sell stale models. Proton needs to refocus and restrategise on its operations and even the brand.

“The word ‘efficient’ must be introduced to the management and workers. They have the ability but not the proper leadership to unite and make use of all their resources,” says another industry watcher.

“Knowing about cars is totally different from knowing how to run a car company.”

Being the No.1 passenger car market in Asean, Malaysia’s automotive industry will survive the economic turmoil, although a few companies will have to make drastic decisions just to stay afloat.

PEUGEOT Service Centre Klang launched its newest offering, the 60 Minutes Express Service, on Dec 7. It is the first Peugeot Service Centre offering the service.

Service manager Jeganathan Singh says, “Customers always come first, hence we decided to reduce the waiting time for regular service to cater to their hectic schedules.”

Peugeot owners are welcome to bring their cars in for the 60 Minutes Express Service for regular servicing (excluding fault diagnosis or major servicing).

n For more information on the 60 Minutes Express Service, call Peugeot Service Centre Klang at 03-3123 1220.

Serving you better

but the increase of cost in promotional activities might also contribute to car prices not being lowered despite the trade pacts,” says Mohamad Madani Sahari, chief executive officer of Malaysia Automotive Institute (MAI).

“However, MAI – a division under the Ministry of International Trade and Industry – is adamant that car prices will slowly become cheaper, 20% to 22% of reduction to be exact.

“We believe that the prices will go down because price rationalisation exercise has been in progress for the past year.”

Madani agrees that the Government has stopped determining the prices of cars since 2006.

“Car prices after tax are being determined by car companies, but we do help where we can as we want to promote Malaysia as the regional hub for energy-efficient vehicles,” he explains.

One of the brands that have received such assistance is Volvo Car Malaysia, which just launched its hyper-modern Volvo XC-90 that is not only powerful but, at RM453,888, is at least RM100,000 cheaper than its other European competitors.

To get the incentive, Volvo Car Malaysia has announced a concrete plan of assembling the modern hybrid XC-90 in its plant in Shah Alam and will be exporting it to Thailand, Indonesia and other Asean countries.

Volvo is also adamant that it will meet the 40% local content required.


motoring 3

JEEP Malaysia is celebrating its first anniversary this month.

To coincide with the festive season, Jeep Malaysia is throwing in some excellent goodies if you are looking to get a Jeep for yourself.

If you purchase a 2014 model, you will be entitled to a free one-year insurance premium

package and zero monthly instalments for one year.

You can also opt for cash rebates, whichever suits you better.

For 2015 models, you can enjoy cash rebates and good over-trade values. The promotion is valid till Dec 31 (terms and conditions apply).

If you are thinking of getting

yourself the iconic American off-road brand that will definitely open up new horizons in your lifestyle, the promotion offers good values.

Besides offering a wide range of vehicles that meets your needs and styles, Jeep Malaysia goes to great lengths to ensure that its customers’ experience of owning

a Jeep is a good one. Its trained technicians and

complete maintenance equipment will ensure that your Jeep has no problem being driven on- or off-road anytime, safely and with a great drive experience.

To learn more about the offer and Jeep vehicles, you can head over to the Jeep showroom in

Glenmarie and talk to the friendly staff.

Bring some excitement into your life with a new Jeep today.

The Glenmarie showroom is open seven days a week.

n For more information or to arrange a test drive, call 1800 885 337.

Irresistible year-end bonusJeep offers a wide range of vehicles that suits different lifestyles.Go on- or off-road with a reliable Jeep.


The NP300 Navara is a truck with premium features.

The instrument panel comes with a colour TFT-LCD screen.

EDARAN Tan Chong Motors might have another winner as the company launched the latest generation of its popular Navara pick-up truck.

In times when pick-up trucks are perceived as lifestyle vehicles, the NP300 Navara proves to bear features that tend towards that concept with its car-like features in the interior of the new double-cab pick-up truck.

Using the proven and improved third-generation 2.5-litre YD25DDTi with variable geometry system and turbo-intercooler engine, the new Navara (top-spec) unleashes up to 190PS and 450Nm of torque.

The other variants have a slightly lower power output – 163PS and 403Nm, and this includes the single-cab entry level version too.

Transmission options are a seven-speed automatic or a six-speed manual.

Underneath, the Navara is serious in offering a truck that is akin to a car. At the rear, a multi-link rear suspension system offers better ride quality for the pick-up truck.

If that is not enough, the rear seat has a good recline to offer a friendlier and more comfortable seating position for passengers.

There is also an air-conditioning

vent for the rear passengers.Up in front, Nissan even has the

zero gravity-inspired car seat for the driver that includes electric adjustments.

The zero gravity seat technology helps alleviate fatigue for drivers and passengers during the drive, helping them maintain the ideal posture that makes long drives more comfortable.

More car-like featuresl Colour TFT-LCD (thin-film-transistor liquid-crystal display) screen in the instrument binnaclel Touchscreen infotainment system with good audio quality and satellite navigationl Full LED headlight system with LED daytime running lights

l Steering wheel with control buttons l Rear spoiler on the edge of the truck bed, which is proven to offer downforce during high-speed driving.

Customers can check out the Navara NP300 models and try it out for themselves.

They can also choose from a

variety of accessories from the showroom and include them in their loan amount, allowing them to customise their truck and place it under warranty.

Truck with car-like features

l Navara NP300 4WD single cab – RM79,000l Navara NP300 4WD double cab 2.5E Manual – RM89,800l Navara NP300 4WD double cab 2.5SE Manual – RM97,800l Navara NP300 4WD double cab 2.5SE Auto – RM102,800l Navara NP300 4WD double cab 2.5V Auto – RM109,800l Navara NP300 4WD double cab 2.5VL Auto – RM120,800

Prices of Navara NP300 variants


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Powering on strongHINO has been operating in Malaysia for more than 38 years now and the brand has become an industry-wide go-to for commercial vehicles in the country.

With more than 100 outlets nationwide, the presence of the Hino brand is stronger than ever with a proven track record of success over the decades since operating in Malaysia.

According to Ken Iwamoto, managing director of Hino Malaysia, customers need a strong brand to back them up when it comes to commercial vehicles, as most of the time, the trucks are the backbone of a company.

Hino recently established a factory in Sendayan, Negri Sembilan, and has been manufacturing commercial vehicles there since last year.

This is to cut down waiting time for vehicle delivery and also to manage cost effectively and ensure disruption-free operations for most of the time.

The management in Hino Malaysia consists largely of Japanese professionals from Hino, Japan, thus the Japanese work culture has a good presence in the Hino Malaysia office.

Hino Malaysia currently sells 32 variants that include light commercial vehicles (LCV) that weigh from 4.5 tonnes to 8.5 tonnes, heavy-duty trucks and even buses.

Of all these vehicles, the LCV is the best-selling Hino product in the

Malaysian market with 80% of the total market share.

Hino held the 2nd Hino Total Support contest last Saturday, Dec 5.

This is the second time the Hino Total Support contest is being held here.

The contest is meant to encourage the sharpening of certain operational skill sets required to work with the demanding clients of today.

“The objective of this event is to provide a platform for Hino dealers to test their knowledge and

show off their skills in categories of sales, service and spare parts.

“In addition, it is also an opportunity for Hino to give due recognition to dealers’ efforts in promoting sales, service and spare parts activities related to customer satisfaction,” said Iwamoto in his opening speech during the event.

“Training is an important foundation in the ability to provide customer satisfaction, which will benefit dealers in the long term and in meeting Hino’s aspiration of providing total support and being the partner of customers.”

When asked about the sales figures for the first three quarters of this year, Iwamoto says that the company has met its target and is hoping to meet the yearly target for this year.

The commercial vehicle industry as a whole has taken a slight hit this year due to economic uncertainty. Hino has sold slightly less vehicles this year compared to last year.

In the midst of all this, Iwamoto still sees the bright side. According to him, “Difficult times are the best time to improve, as it tests our

ability to work under pressure. If you can excel under the pressure of difficult times, then you can achieve excellence.”

Compared with this year, Iwamoto feels that there will be a slight growth in vehicle numbers next year.

He says that it is important for a company to have constant growth and he feels that Malaysia has a lot more potential for growth and development.

n For more information, visit www.hino.com.my

Ken Iwamoto says that training is an important foundation to provide customer satisfaction. Winners of the 2nd Hino Total Support contest.


VOLKSWAGEN Group Malaysia offers the refined Passat with enhanced specifications for a competitive price.

Following the introduction of its complete build-up (CBU) version in 2011, the Malaysian-assembled Passat rolled out of the DRB-HICOM factory in Pekan a year later and has since been one of the most popular models in Volkswagen’s range of vehicles in Malaysia, selling a total of more than 6,000 CBU and complete knock-down (CKD) units to date.

The popularity of this sedan in Malaysia is evident due to its combination of premium and modern features packaged with an award-winning TSI engine and Volkswagen’s hallmark seven-speed direct-shift gearbox transmission, making it the segment leader in ride and handling.

Volkswagen Group Malaysia managing director Christoph Aringer shares that the Passat has always emulated the progress of technological advancement at Volkswagen, saying, “Since the inception of its debut model in 1973, the Passat has undergone impressive technological improvements to be the premium executive sedan that it is today, concurrently selling more than

15 million vehicles worldwide. “The Passat continues to be a

testament of our commitment to offer competitively priced class-leading vehicles to Malaysians and the Passat remains true to Volkswagen’s values of quality, innovation and environmental friendliness.”

Simply automotive engineering at its finest, the Passat aims to provide premium mobility for discerning Malaysians looking for advanced comfort.

Enhanced features The Passat offers drivers

This efficient engine is mated to a seven-speed direct-shift gearbox, enabling this sedan to accelerate from 0kph to 100kph in 8.5 seconds. It is capable of reaching a top speed of 220kph.

Installed with Volkswagen’s signature seven-speed direct-shift gearbox, drivers can experience smooth and fast gear shifts, which contribute to better fuel efficiency and ride comfort.

The combination of its TSI and direct shift gearbox technology places the Passat at the forefront of Volkswagen’s fuel efficiency, returning a frugal seven litres per 100km on the combined cycle – allowing drivers to go a distance of approximately 14.3km per litre.

The Passat is available in six colours – candy white, light brown, reflex silver, deep black, black oak brown and icelandic grey.

The Passat now comes with five years of free maintenance (terms and conditions apply), which is equivalent to five times free services.

The Passat is available for booking at all Volkswagen dealerships with the selling price of RM169,888.

n For more information, visit www.volkswagen.com.my

Premium quality and innovation

enhanced connectivity, safety and comfort features. The sedan’s range of connectivity options now includes Bluetooth, telephone connectivity and audio streaming that allow Passat owners to wirelessly integrate a compatible mobile phone offering hands-free communication.

Its comfort features have been upgraded to include 12-way adjustable electric front seats and memory function for driver’s seat to ensure comfortable and fatigue-free travel, even on long journeys.

On the car’s security front, the Passat is now improved with anti-theft alarm system with an

electronic immobiliser, offering maximum protection against vehicle theft.

Another notable enhanced feature is the sedan’s electric folding exterior mirrors.

Engine and performanceEquipped with a 1.8-litre TSI

160PS turbocharged direct petrol injection four-cylinder engine, the Passat produces maximum torque of 250Nm kicking in from a low 1500rpm all the way to 4200rpm – making it among the most powerful cars available in its segment.

The Volkswagen Passat offers modern

features and award-winning TSI engine.


motoring 7

Enhanced drive

MOTOR Image, the exclusive distributor of Subaru in the region, launched the Subaru XV – STI Performance Edition last year.

The STI Performance Edition complements the Subaru XV through the use of STI’s engineering technologies, which achieve enhanced aesthetics and performance from improved handling, aerodynamics and weight distribution.

The Subaru XV – STI Performance Edition includes the following enhancements: l Sportier exterior upgrades, including STI front, rear and roof spoilers, side skirts, flexi-tower bar, daytime running lights and STI Performance badgesl Refined interior upgrades featuring chrome temperature control dials, matte silver steering wheel control panel and side panelsl Improved handling and drivability

Glenn Tan, executive director of Tan Chong International Ltd, says, “Subaru customers are very discerning and there has been growing interest for the Subaru XV in the Asean region. Therefore, to cater to this increasing demand for the XV, we want to be able to offer a variety of options to our customers and the STI Performance Edition is one of them.

“The Subaru XV-STI Performance Edition will take the Subaru XV

one step further, giving consumers an enhanced driving experience through improved handling and stunning visual aesthetics,” he adds.

The Subaru XV – STI Performance Edition is a dynamic crossover vehicle that blends luxurious urban living with an active adventurous lifestyle.

This vehicle caters to consumers wanting a convenient, practical car that provides an enjoyable driving experience on any terrain.

The STI package features sportier exterior upgrades such as the STI front and rear under-spoilers and side skirts that visually enhance the Subaru XV and inspire the driver to feel confident, safe and responsive.

A smoother ride is delivered

through better aerodynamics and handling. The Subaru XV – STI Performance Edition has undergone extensive testing undertaken by Subaru Tecnica International (STI) using FHI’s (Fuji Heavy Industries) wind tunnel test laboratory to compare the aerodynamics effects, driving stability and manoeuvrability between the original Subaru XV and the STI Performance Edition.

The test result showed that the vehicle’s exterior upgrades have improved the drivability of the Subaru XV – STI Performance Edition.

Like every other Subaru vehicle, the Subaru XV – STI Performance Edition has gone through comprehensive safety testing that conforms to the highest levels of

Subaru’s philosophy of all-around safety.

The combination of safety technologies with Subaru’s symmetrical all-wheel drive (AWD) gives drivers stable control and peace of mind in all driving conditions.

Motor Image Malaysia also opened the new 3S Centre in Petaling Jaya last year in conjunction with the launch, featuring a wide range of facilities for sales, service and spare parts under one roof.

The Subaru XV – STI Performance Edition are available in the following markets under the Motor Image Group – Malaysia, Thailand, Indonesia, the Philippines, Taiwan, Hong Kong and Singapore.

About SubaruBased in Japan, Subaru is the

automotive division of FHI, a comprehensive, multi-faceted transport equipment manufacturer that develops a wide range of innovative products and services such as automobiles, aerospace, bus manufacturing, house-prefabricating, industrial products and ecology systems.

Founded in 1955, Subaru has since grown to become one of the world’s leading carmakers. In 1972, Subaru became the first in the world to market an AWD passenger car and pioneered the market in Japan for high-performance station wagons by combining a turbocharged engine with an AWD system.

Subaru has improved and refined its AWD system to create a symmetrical AWD system that enables optimal driving pleasure and safety.

Subaru is well known for its engineering, design, functionality, safety and reliability.

The Subaru range of vehicles includes the BRZ, Exiga, Forester, Impreza, Legacy, Outback, Tribeca and XV.

Its core technologies, such as the symmetrical AWD and Subaru Boxer built into every model, offer superb handling.

n For more information, visit www.subaru-global.com

The Subaru XV – STI performance edition.


Participants of the Borneo Safari International Off-Road Challenge waiting to embark on their 10-day journey into the wild. Johnson Ling, first-timer in the 10-day challenge.

Adventure of a lifetime

THE Borneo Safari International Off-Road Challenge celebrated its 25th anniversary recently with a 10-day event that brought together participants from all walks of life, including some off-road novices.

Johnson Ling, media photojournalist and first-time participant, decided that it was time for him to experience the challenge for himself after reading and hearing about the tough off-road 4x4 safari.

Ling was invited to experience the Borneo safari as a journalist and when he was told that he would be “off the grid” for 10 days, he accepted without hesitation.

Thus began his off-road trip in an Isuzu D-Max. This was Ling’s first off-road jungle trip.

Although he had been to nature camps and done some dirt cycling, he had never attempted something such as this.

From the first day, the issues of zero Internet and limited cellphone connectivity seemed to be small worries as there was an overwhelming sense of excitement.

As they progressed onto light jungle terrain, the urban world and the need to stay connected diminished completely because Ling and the other newbies on the trip were fascinated with the world around them.

At the end of the first day, it was time to rest, take a bath in the river and relax after a long day spent in their vehicles.

The second day and subsequent days were tougher as the progress

Off-Road Challenge. He finds the friendships formed

over the 10 days invaluable and that being one with nature has taught him about things he never considered important till now.

The safari challenge is a trip for the toughest people who are looking for a good challenge.

n For more information, visit isuzu.net.my/home/

into the thick forest was slow, with obstacles that left many first-time participants worrying if passing would be possible.

With a good winch, skilled drivers and well-prepared Isuzu vehicles, the water crossings, deep gulleys and steep hills were conquered with a special mix of camaraderie and motivation.

The new participants were witnessing the coming together

of man and machine, working together to overcome nature at its best.

Food was never a problem as the cooks on the trip kept them well fed and most participants had to stop themselves from going for seconds as toilet breaks were few and this meant it was best to eat modestly during the day.

There were a few light terrain stages where Ling and the other

media people were allowed to drive their Isuzu trucks, which was an exciting experience.

The well-engineered trucks never failed and gave drivers a sense of security as they went through some special off-road stages to show the ability of the trucks in rough conditions.

Ling says that he looks forward to returning for next year’s Borneo Safari International

Motoring - 13 December 2015

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Transcript of Motoring - 13 December 2015