japan’s hydrogen fuel cell roadmap should not be expensive,” sureethip said, adding that...

Why ToyoTa and honda are So BuSy WiTh FCVs

download it from Carlist.my and LIVELIFEDRIVE.COM

MazDa ThaILanD’s 22.6 bILLIOn bahT skyaCTIV PROjECT

I N S I D E

D E C E M B E R 2 0 1 4 • I S S U E 0 1 1

J a p a n ’ S hyDROgEn FuEL CELL ROaDMaP

DaVID sChOCh, FORD’s gROuP VP anD PREsIDEnT OF asIa PaCIFICi n T e r V i e W

http://www.carlist.my/

http://www.livelifedrive.com/

azda Motor Corporation has reaffirmed its commitment to Thailand by investing

22.6 million Baht to transform Thailand into one of three global production hubs for the all-new Mazda 2, a model introduced under the second phase of Thailand’s Eco-Car programme.

To that end, 9.7 million Baht has been spent in upgrading the AutoAlliance Thailand (AAT) plant in Rayong.

Another 10 million Baht was spent in setting up a 400,000 units per year transmission plant.

The remainder of the investment was used for the setting up of a 30,000 units per year engine plant in the Chonburi province, to produce the all-new Mazda 2’s SkyActiv-D 1.5-litre diesel engine, the first diesel engine for an eco-car in Thailand.

Thailand’S FirST dieSel-poWered eCo-CarS p ea k i n g a t a ce re m o n y commemorating the start of production of the all-new Mazda 2 at AAT, Yuji Nakamine, Senior Managing Executive Officer of Mazda Motor Corporation, said that the first batch of the all-new Mazda 2, which began production on October 27, has already been exported to Australia.

“The all-new Mazda 2 will be launched at the Thailand International Motor Expo, which will also host the world premier of the all-new Mazda 2 Sedan. We’re planning to sell this product in Thailand at the beginning of 2015 and Thailand will become an export hub for the model, exporting to many countries,” Nakamine said.

The Mazda 2’s 1.5-litre SkyActiv-D diesel engine meets Euro-5 emission standards and emits no more than 100 g/km of carbon dioxide and delivers a good fuel economy of at least 23 km/litre. As such, Mazda’s latest B-segment model enjoys a lower 17 per cent excise

duty (versus the regular 30 per cent) as well as other benefits in corporate income tax exemptions.

“We are so happy and honoured that the all-new Mazda2 has been officially approved as the first model for the phase two of the Eco Car Program, and that it meets the world’s strictest criteria for carbon dioxide emission levels of around 100 gram per kilometer,” Nakamine added.

Nakamine further explained that the Thai-made, all new Mazda2 will elevate the technical standards of Thailand’s automotive industry through its collaboration with many

M

22.6 Billion BahT inVeSTed in SkyaCTiV projeCTS in Thailand

above: Mazda will be manufacturing the Mazda 2’s SkyActiv body, engine and transmission in Thailand.

I S S U E 0 1 1

download it from Carlist.my and LIVELIFEDRIVE.COM2

MazDa uPgRaDEs aaT InTO an ECO-CaR PRODuCTIOn hub



http://www.carlist.my/air

local parts suppliers. He also said that the Mazda 2 is a

highly competitive model. It recently won the Japan Car of the Year 2014 award, and secured 19,000 orders within just a few months after its launch in Japan. As such, it will be a major contributor to the growth of Thailand’s automobile industry.

“This is the fifth Mazda to win this honourable award (Japan Car of the Year), the last being the CX-5 in 2012. We are confident that this model will capture the hearts of many customers and help them rediscover the pleasures of the automobile,” Nakamine said.

Meanwhile, Mazda Sales Thailand’s Vice President for Marketing, Sureethip Chomthongdee La-Ongthong added that the Mazda 2 will serve customers in the premium, small-car segment.

Although the car has already been shown at last month’s Thailand International Motor Expo, prices will only be announced in 2015, when the car goes on sale.

“We haven’t announced a price for the model yet and we plan to only do so once the sales operation is ready,” she said.

Sureethip also cautioned that the Mazda 2 is a premium, sophisticated car and prices may not be as low as some customers expect an eco-car to be.

“We know that price is a very sensitive factor because when we say that the car is an eco-car, many may think that it should not be expensive,” Sureethip said, adding that although Mazda may not be the cheapest, prices will still be competitive enough against other brands.

Sureethip explained that the Mazda 2 is able to meet strict regulations by employing sophisticated features like i-ELOOP, which is able to recover energy that would otherwise be lost when the driver lifts off the accelerator.

BooST For aaTAAT is one of the three plants in the

world that manufactures the all-new Mazda 2, after the Hofu plant in Japan and Salamanaca in Mexico.

With this additional investment, Mazda’s capacity at the co-owned (with Ford) AAT plant has more than tripled, from 50,000 units to 208,000 units per year.

Out of this 158,000-unit increase in capacity, 120,000 units are allocated for completely-built up (CBU) vehicles to cater to both domestic and export markets, while the remaining are for completely knocked-down (CKD) kits.

The Thai-made Mazda 2 will also be exported to the United Kingdom, New Zealand and other countries in ASEAN.

FirST Mazda dieSel engine planT ouTSide oF japanThe 30,000 units per year engine plant will begin operations in the fourth quarter of 2015, and will be the first Mazda plant outside of Japan to manufacture the small-capacity clean diesel engine.

It is also the fourth SkyActiv engine production plant in the world after the Hiroshima Plant in Japan, Changan Ford Mazda Engine Co., Ltd. in China, and Mazda de Mexico Vehicle Operation in Mexico.

SkyaCTiV-driVe TranSMiSSion planT“Mazda is on track in our commitment to make Thailand stronger than ever before. In January next year, we will start producing transmissions at the state-of-the-art MPMT (Mazda Powertrain Manufacturing Thailand) factory, not only for our AAT plant, but also other overseas plants,” Nakamine added.

The MPMT plant is located adjacent to engine plant and will be ready by January 2015. It is only the second Mazda transmission plant in the world, with a capacity to manufacture 400,000 SkyActiv-Drive transmissions per year.

p i S a n i T T i W a T a n a k u l

AAT IS oNE of ThE

ThrEE plANTS IN

ThE worlD ThAT

MANufAcTurES ThE

All-NEw MAzDA 2,

AfTEr ThE hofu

plANT IN JApAN AND

SAlAMANAcA IN

MExIco.

right: Mazda 2 is Thailand’s first

diesel-powered eco-car.

I S S U E 0 1 1


http://carlist.my




ichelin is set to introduce its proprietary puncture-resistant Selfseal tyre

technology across the world starting 2015.

As its name implies, Michelin tyres equipped with the Selfseal technology are able to continue performing even after a puncture. The tyre uses a special compound that instantly seals puncture holes within the tyre thread.

The solution works by using a very thin layer of a unique rubber compound made from natural rubber, which quickly becomes a soft, sticky compound when exposed to heat that naturally occurs when a tyre is rolling along the road surface.

Should the tyre roll over a road hazard causes a puncture, a nail for example; this soft and sticky compound reacts immediately and encircles

the area around the hole, plugging it immediately and therefore preventing any loss of tyre pressure.

The tyre can continue to be used as normal, without any loss of tyre pressure. According to Damien Hallez, Michelin’s Head of Technical Communication, the tyre is safe to use even if a nail remains lodged inside. “As long as there is no loss of tyre pressure, there is no concern,” said Hallez at the 2014 Michelin Challenge Bibendum in Chengdu, China last month.

If the nail is removed from the tyre thread, the Selfseal compound will plug the hole and no further repair is necessary.

“There is no need to change the tyre nor to repair it. The tyre will retain its performances intact and can continue to be used normally,” Hallez added.

Unlike run-flat tyres, Michelin’s Selfseal solution does not require any additional stiffening on the sidewalls, so they operate just like any conventional tyre, with absolutely zero compromise in all of the tyre’s performance attributes.

M

above: Selfseal uses a very thin layer of a unique rubber compound that becomes soft when exposed to heat.

More CoMForTaBle, and 0.4-liTre/100 kM More Fuel eFFiCienT Than run-FlaTS

ANy INcrEASE IN

coST bEcAuSE of

ThE TEchNology

wIll hAvE To

bE offSET wITh

AN INcrEASE IN

coMpETITIvENESS

EIThEr froM ThE

MANufAcTurINg

or DowNSTrEAM

I S S U E 0 1 1


say gOODbyE TO PunCTuREs - MIChELIn sELFsEaL Is COMIng TO asEan




Hallez says that Selfseal tyres are not only more comfortable than run-flat tyres, but also consume up to 0.4-litre/100 km less fuel when compared to an equivalent Michelin run-flat tyre.

Still, Hallez stressed that Selfseal will not replace Michelin’s existing run-flat tyre solutions. Instead, the two will be sold in parallel, meeting different needs of different groups of customers.

The Selfseal compound can be added to any of Michelin’s range of tyres, without any significant increase in cost.

According to Lionel Dantiacq, Managing Director of Michelin South East Asia and Ocenia, there will be no significant increase in prices for tyres equipped with Selfseal technology.

“No, only very small cost,” answered Lionel, when asked if Selfseal is a costly technology to add.

“Our mission is growth. For growth, our priority is to understand the consumer and try to, at the end of the day, match the value that it [our product] gives and [satisfy] the needs of the end user. In our case, we are making a lot of efforts mainly in the productivity of our plants, as well as on the design of the product, on the material, on the overall design of

the tyre to be more affordable. “We don’t have an ambition,

especially in ASEAN, to sell 50 per cent more expensive than the competition, or in a very exclusive manner. That’s not our strategy, we are a world leader and we want to be a clear leader in ASEAN as well. To be a leader you have to have a huge range of products and try to apply what you have learned from your consumers, onto your products at an affordable price,” he said.

“Any increase in cost because of the technology will have to be offset with an increase in competitiveness either from the manufacturing or downstream or whatever,” added Lionel.

At the Challenge Bibendum expo, Michelin put on display two tyres equipped with Selfseal - a Michelin Primacy 3 ST and a Michelin Pilot Sport 3, the first debut for Selfseal in Asia.

Lionel explained that Selfseal will be offered across its entire tyre range, but adds that some tyre ranges will receive the technology later than others, depending on the product’s lifecycle.

“Some products will be phased out so there is a little bit inertia before we can introduce them across our entire tyre range,” he said.

While Lionel did not reveal a specific timeline for the introduction of Michelin’s Selfseal technology in ASEAN countries, he confirmed that Selfseal is a global product and will be rolled out in stages across the world, including markets in the Asia Pacific.

Lionel also added that Michelin’s Selfseal tyre will be fitted as an Original Equipment (OE) product in some Volkswagen models sold in Europe beginning 2015.

“We indeed see great application here in ASEAN. At the of the end day, this is an initiative we launched first in Western countries, but it will soon arrive in ASEAN. In the coming 18 months, we should have very interesting things happening in ASEAN. Perhaps we will start first in Thailand or in Australia; we have a roll-out plan as the opportunity for us is very clear. This is a worldwide need and the usage conditions here in ASEAN and the requirements from the consumers are pretty clear.”

As for its future plans in the ASEAN region, Lionel added that Michelin will be introducing its subsidiary brand, SiamTyre, in more countries in ASEAN, to capture what Lionel calls the ‘Tier-2’ segment, aimed at users of commercial vehicles.

“We will be implementing a diverse multi-brand offer to cover different needs. We have introduced in Thailand last May, the Siam bias ply tyres in Haatyai. We will start in Australia in March, the Philippines in November and Malaysia in January,” said Lionel.

h a n S C h e o n g

left: lionel Dantiacq, Managing Director of Michelin South East Asia and ocenia. Below: As long as the sidewalls are not damaged, Michelin’s Selfseal tyres are safe to be used even with a nail lodged inside.

I S S U E 0 1 1





he BMW Group demonstrated its confidence in Thailand by pumping in 600 million Baht

worth of investment into an engine assembly plant in Rayong, Thailand.

Due to begin operations in December 2015, the plant will produce engines exclusively for BMW and MINI models assembled in Thailand (the engines will not be exported elsewhere, at

least for now).Thailand currently assembles the

1-series, 3-series, 3-series GT, 5-series, 7-series, X1, X3, X5 and MINI Countryman.

Dr. Klaus Draeger, member of the board of management at BMW AG and Mr. Matthias Pfalz, President, BMW Group Thailand jointly announced in a press conference that BMW will begin production of four-cylinder diesel

T

Below: The new engine plant will raise the local content of Thailand-assembled bMw

models to 40 percent, thus meeting AfTA’s requirements for preferential tariff rates.

BMW’S FirST engine planT in aSean, r&d CollaBoraTion WiTh Chulalongkorn uniVerSiTy

engines at the new plant in December 2015, followed by four-cylinder petrol engines in 2016.

“To further enhance the local production of key components, we are pleased to announce our decision to set up a local engine assembly together with our partner, Powertech Engine Assembly, to support our locally-assembled BMW and MINI vehicles in

I S S U E 0 1 1


bMW InVEsTs 600M bahT In ThaI EngInE PLanT




Thailand. The engines produced here will serve the production of the cars at the Rayong plant, so the number of engines produced will be equal with the number of cars produced,” Draeger said

He added that BMW has strong confidence in Thailand and believes that its investment in the engine assembly plant will allow BMW to achieve a local content rate of 40 per cent, which would then allow BMW to export its cars throughout the ASEAN region under ASEAN’s preferential tariff scheme (zero import duty at the destination country).

“Engines are part of our name: Bavarian Motor Works. The engine is the beating heart of the passenger car and the key to both performance and efficiency. With this project, we believe

that the operation in Thailand will grow in the future,” Draeger said.

At the same time, BMW Group Thailand announced its initiatives for the future of sustainable mobility in Thailand by showcasing the BMW i3 electric car, and the BMW i8, the world’s most progressive plug-in hybrid sports car.

The BMW i8 was launched in Thailand earlier in March and has secured quite a number of orders. The i3 however, will not be launched in Thailand, at least not until the necessary supporting infrastructure for an electric car is in place.

BMW said they have no plans in the near future to sell the i3 in Thailand due to the lack of infrastructure to serve a fully-electric car but hopes that the Thai government will consider giving tax incentives for electric cars.

“The success of the i8 in Thailand

made me believe that Thai consumers want to use this type of vehicle, but if the government wants more people to use such type of fuel-efficient and environmentally friendly cars, it needs to give more support. The i3 costs around 30,000 Euros in Europe and will be much more expensive once Thailand’s 80 per cent import duty is included,” said Pfalz.

The BMW Group also announced that it is working towards setting up an R&D collaboration to develop DC quick chargers for electric vehicles, working with the Chulalongkorn University’s Faculty of Engineering, the Provincial Electricity Authority, and ThaiGerTec, a Thai-German technology firm.

p i S a n i T T i W a T a n a k u l

I S S U E 0 1 1





n November’s issue of Automotive Industry Review, we wrote about our interview with Malaysia’s

Road Transport Department’s (JPJ) Automotive Engineering Division with regards to the coming implementation of WP29 United Nations (UN) regulations.

Since the publication of the story, we have also spoken to several car makers regarding the coming UN regulations.

Speaking in private, some car makers have expressed their pessimism regarding the new regulations.

The way the automotive industry is structured means that manufacturers will streamline the vehicle specifications package, grouping their assembly kits by market regions.

Logically, a developing market will have a poorer quality of fuel, prioritizes cost over others, have poorer quality roads but regulations on exhaust

emission and vehicle safety are usually not as strict as those in Japan, USA or Europe.

Conversely, wealthier developed markets will have stricter regulations on exhaust emission and vehicle safety. They will also have the necessary infrastructure like a good supply of low sulphur fuels, standardised road signages, and well maintained roads so these more sophisticated vehicles are able to perform at their optimum level.

Malaysia’s regulatory direction however, is in a very odd position. From a regulatory standpoint, Malaysia i

adopTion oF european SaFeTy STandardS unrealiSTiC WiThouT Wide aVailaBiliTy oF Clean FuelS

aspires to follow the standards adopted in developed Europe. At the same time, the most basic component required for these European-standards compliant vehicles to work - clean, low sulphur petrol and diesel, is not readily available.

“Our CKD kits are matched to either ‘high-high’ or ‘low-low’ package,” said a Japanese manufacturer who does local assembly operations in Malaysia, referring to the pairing of vehicle structure and powertrain.

“We don’t have a ‘high-low’ package, meeting high European safety standards but still paired to Euro-2 fuel compatible

above: Thailand has been using Euro-4 grade petrol and diesel fuels since 2012.

I S S U E 0 1 1


InTRODuCE LOW suLPhuR FuELs FIRsT bEFORE EnFORCIng un REguLaTIOns

ManuFaCTuRERs:




engines,” the Japanese expatriate told Automotive Industry Review.

Malaysia has made several commitments to introduce Euro-4 fuels in the past, but these have been repeatedly delayed, now until October 2018 for regular RON 95 petrol (premium RON 97 Euro-4 petrol will be available in September 2015).

Euro-5 diesel is currently available in very limited locations in Johor, but the clean diesel will not be made available nationwide until September 2020.

In comparison, Thailand has upgraded its emission standards to Euro-4 for both petrol and diesel powered vehicles since 2012. Singapore is tentatively set to adopt Euro-6 emission standards for both petrol and diesel vehicles by 2017.

Vietnam has committed itself to introducing Euro-4 standard fuels by 1-January 2016, and will subsequently tighten its emission standard to the corresponding level by 1-January 2017.

CoST iMpliCaTionSThe government needs realise that regulations add cost to the product.

Since last year, the Malaysian government has been telling people

that it is making efforts to reduce the prices of cars by replacing the current sales tax with a more broad-based Goods and Services Tax (GST), as well as promoting competition in the market. Import and excise duties however, will remain unchanged.

At the same time, the government wants to adopt European regulations, which would imply that the cars sold in Malaysia will cost more to build.

The increase in cost comes mainly from certification. In order for a new model to be homologated, JPJ requires the vehicle manufacturer to submit the necessary certifications by independent third-parties to certify that the vehicle meets UN regulations.

This is similar to the practice in Europe but is different from Japan, where the authorities accept test results produced by the manufacturer themselves. The Japanese government believes in self-regulation so as not to burden manufacturers with unnecessary regulations that will increase cost.

As the ASEAN region is dominated by Japanese manufacturers, it would imply that many car companies in Malaysia will have to pay for an independent

third-party lab to certify the vehicle. Take a recently-launched Japanese

brand MPV for example. The vehicle meets all of UN’s requirements, but as the manufacturer does not have certification papers from a third party, the local importer in Malaysia needs to pay a third-party lab in Japan to do the necessary testing. It also needs to ship five units (including two units for a crash test) to Japan at its own cost.

Interestingly in Australia, regulations are not as strict as in Malaysia. The Australian authorities opine that many of the requirements set by UN are unnecessary for local driving conditions, and enforcing them would only lead to an unnecessary increase in costs.

Instead, Australia drafts its own Australian Design Regulations (ADR), which is similar to that of the UN’s, but with amendments to reflect their local requirements.

As mentioned in the previous issue, Thailand is adopting a wait-and-see approach before deciding. Perhaps the Australian model is a more realistic path for countries in ASEAN to follow.

h a n S C h e o n g

above: bhpetrol is currently offering Euro-5 grade diesel at selected locations in Johor.

wE DoN’T hAvE

A ‘hIgh-low’

pAckAgE, MEETINg

hIgh EuropEAN

SAfETy STANDArDS

buT STIll pAIrED

To Euro-2 fuEl

coMpATIblE

ENgINES

I S S U E 0 1 1


http://carlistmy-cdn.s3.amazonaws.com/download/AIR-010.pdf




ord Motor Company has reaffirmed its commitment to the distributor of Ford

vehicles in Malaysia, Sime Darby Auto ConneXion.

David Schoch, Ford Motor Company’s Group Vice-President and President of Asia Pacific region, said during a media gathering in November, “I can tell you that we are very pleased with the long standing partnership that we have with Sime Darby, and we believe that the model we have right now is good for growth of the Ford brand here and we are going to continue on that track.”

Up until April 2008, Ford was directly involved with the distribution of Ford vehicles in Malaysia via Ford Malaysia, a joint venture company between Ford Motor Company and Sime Darby Motors.

However, the business was wound down as part of Ford’s reorganisation plans following the global financial crisis that was happening at the time.

Ford ceased its direct presence in Malaysia and handed over the distribution of Ford vehicles to a newly formed Sime Darby Motors subsidiary company, Sime Darby Auto ConneXion (SDAC).

When asked if Ford would retake distributorship from Sime Darby, the Shanghai-based Schoch, who last

F keeping Thailand’S aaT, MuSTang CoMing To MalaySia in 2015

From left: David westerman, David Schoch, Dennis ho, Managing Director of Sime Darby Motors - Malaysia and Taiwan, lee Eu San.

visited Malaysia 10 years ago, said that while he does not want to speculate on the future, the existing partnership with Sime Darby is serving Ford very well and Ford wishes to continue along this path.

“Our partnership is deepening as well with the assembly of the Transit. That was a really big objective of ours

- to bring [Ford vehicle] assembly back into Malaysia. Our partnership with Sime Darby is developing in a very positive way,” said David Westerman, Managing Director of Malaysia, Asia Pacific Emerging Markets, Ford Motor Company.

Westerman, who is based in Bangkok

I S S U E 0 1 1


FORD REaFFIRMs COMMITMEnT TO MaLaysIa’s sIME DaRby MOTORs




said that Ford will not be announcing anymore new models to be assembled in Malaysia in the near-term, adding that the Transit van is in a good spot in the market.

Presently, most Ford vehicles sold in Malaysia are imported from Thailand. Apart from the Malaysia-assembled Transit, the other exceptions are the Belgian-made Mondeo (next Mondeo to come from Valencia, Spain) and the Spain-made S-Max, as well the German-made Fiesta ST and Focus ST models.

Schoch also reiterated that there will no new local assembly projects, but was careful to not close the door on any future opportunities.

“The reason that I am here...you know I have been away for 10 years. [I want] to come back and understand what’s happening in the markets, to get reacquainted with our partners and look for opportunities, and we will go back, and I already got some ideas on what we can look and study at and how we can grow our business. We are pleased with the progress we are making. In 2013, Ford sales in Malaysia were up 50 per cent,” said Schoch.

“Like any good business, we will take a look at any opportunities in the market place,” he added.

Ford To keep STake in Thailand’S aaTAlthough the Ford Motor Company has reduced its stake in Mazda Motor Corporation from 33 to just 3 percent, the company has no plans of divesting its 50 per cent stake in the AutoAlliance Thailand (AAT) joint venture plant with Mazda in Rayong.

This is despite the fact that Ford already has a new production plant, Ford Thailand Manufacturing (FTM), also located in Rayong. Ford has since transferred production of all its passenger cars from AAT to FTM, including the Fiesta, which was previously built alongside the Mazda 2 in AAT.

However, Schoch said that reason behind the transfer of the Fiesta from AAT to FTM was to free-up much needed capacity for the Ranger, the only Ford model still being produced at AAT.

“In AAT, we have a 50-50 joint venture with Mazda. It’s a very successful joint venture and we plan to continue with no one else to separate [us]. We continue to make our trucks there, they continue to make their cars and their trucks there, and it’s a good relationship right now. There is no real reason to break it up,” said Schoch.

When asked if the current arrangement will continue into the next generation of Ford models that are developed purely by Ford (current Ranger is co-developed with Mazda), Schoch said, “Well, we don’t speculate right now what new products will come into the market or into AAT, but as I said, the partnership with Mazda is working well and there is no reason to change it.”

MuSTang, all-neW Mondeo CoMing To MalaySia in 2015Lee Eu San, Managing Director of SDAC also revealed that the company is set to break a new sales record by the end of 2014, with sales expected to pass the 14,000 vehicles mark, boosted by strong demand for the Ranger, which is now the second best selling pick-up truck in Malaysia.

As of October, the company has already sold 11,426 vehicles, surpassing the 10,660 units sold in 2013.

This momentum will be carried through 2015 with the introduction of the all-new Everest, Mondeo and Mustang. For the first time in 50 years, the Mustang has become a global car that is also available in right-hand drive.

The Mondeo will arrive in the first half

left: ford Mustang is now a global model, and will be introduced in Malaysia in 2015. Below: Malaysia is the first country in ASEAN to introduce the fiesta ST.

I S S U E 0 1 1





of 2015, followed by the Everest, before rounding up its 2015 model range with the US-made Mustang in late-2015, as soon as right-hand drive variants are available. The Mustang will be available with two engine options - 2.3-litre EcoBoost and and a 5.0-litre V8.

rM140 Million aFTer-SaleS inVeSTMenTLee also revealed SDAC will be investing RM140 million over the next 12 to 24 months in building new facilities - including a new flagship 3S centre along the Federal Highway by mid-2015 to complement its existing 3S centre there (which also serves as SDAC’s head office). The flagship outlet will be able to house five cars in its showroom, complemented by a 22-bay workshop.

This is on top of the RM25 million that has been spent over the last 12 months.

A new training facility is also planned, aimed at improving the competency of its staff, including those in non-technical positions.

By 2016, SDAC will increase its 3S facilities from the current 49 to 52, further increasing it to 55 by 2018, by which 90 per cent of its dealers will be 3S centres.

“Over the next two years we will be looking at nothing less than a 75 percent increase in the number of service bays compared to what we have today,” said Lee.

To cope with the strong growth in sales (increasing 800 per cent since 2008), SDAC had earlier this year increased the operating hours of its 3S centre in Petaling Jaya, extending it to 10.30pm

on weekdays and 6pm on Saturdays.

CroSSoVerS, The nexT SegMenT oF groWThThe crossover segment is seeing a lot of activity. Mitsubishi kick-started it with a competitively priced locally-assembled ASX earlier in January, followed by Ford and Peugeot with the EcoSport and 2008 respectively.

2015 will see competition intensify with the entry of the Mazda CX-3 and Honda HR-V, but Honda’s entry should be seen as a positive move for other competing brands as the presence of a top-tier brand like Honda will raise the awareness of crossovers.

Lee also said that the Fiesta has not experienced any sales cannibalisation by the Fiesta-based EcoSport.

“For Malaysia, it is a new segment

ovEr ThE NExT

Two yEArS wE

wIll bE lookINg

AT NoThINg lESS

ThAN A 75 pErcENT

INcrEASE IN ThE

NuMbEr of SErvIcE

bAyS coMpArED

To whAT wE hAvE

ToDAy

Below: The ranger-based Everest seven-seater Suv will make its

debut in mid-2015.

I S S U E 0 1 1





that we are participating in and we’ve certainly got new customers who are new to Ford, and they like the value proposition of the EcoSport, which is a basically a higher vehicle than a compact car, offers good fuel economy and good safety. It’s a new segment and we are getting new customers. So I don’t see any cannibalisation between the EcoSport and the Fiesta. It’s two different vehicle choices that customers are making,” said Lee, adding that the EcoSport’s contribution to SDACA will be even higher next year once the full year contribution of the EcoSport is accounted for (EcoSport was launched in Malaysia in August)

Schoch also added “Since 2008, SUVs (globally) have grown about 90 per cent. When you take a look at the trends here in Asia Pacific they are very similar.”

“We believe that the EcoSport is going to hit that space, white spaces as we call it, where nobody else plays and we believe the segment is moving in that direction and that’s what customers want,” he elaborated.

Regional boss, Westerman, continued to say, “We see the same across ASEAN. It plays in the white space. Like Malaysia, like many other ASEAN markets, there are large B-car industries and it is a great step-up vehicle that allows more functionality, higher driving position, everything that an SUV brings at a very nice walk-up over a traditional B-car buyer, and it also fits nicely below a C-size SUV.”

2015 might just shape up to be the year of the crossovers.

h a n S C h e o n g

IT IS A NEw

SEgMENT ThAT wE

ArE pArTIcIpATINg

IN AND wE’vE

cErTAINly goT NEw

cuSToMErS who

ArE NEw To forD,

AND ThEy lIkE ThE

vAluE propoSITIoN

of ThE EcoSporT

above: right-hand drive ford Mondeos has just been launched in the uk and will be launched in Malaysia in the first half of 2015.

I S S U E 0 1 1





arlier last month, Toyota’s launch of the Mirai hydrogen fuel-cell vehicle (FCV), the

world’s first commercially available hydrogen fuel-cell vehicle dominated the headlines.

As expected, the Mirai is not cheap. At 7.23 million Yen, it is even more expensive than Toyota’s flagship Crown Majesta (6.27 million Yen), but some buyers will be eligible for a 3 million Yen subsidy.

Although the Mirai is not the world’s first mass produced fuel-cell hydrogen vehicle - that honour goes to the Hyundai Tucson Fuel Cell (which is only available for leasing) - the level of innovation presented within the Mirai simply places Toyota ahead of everyone else.

Like the first-generation Toyota Prius, the Mirai is not a pretty looking car. Packaging constraints from having to accommodate four large radiators/condensers has resulted in an odd-looking front -end design that is dominated by gaping wide air intakes.

Just like the first-generation Prius, get too hung up on its looks and you will miss the groundbreaking technology that is wrapped within this odd-looking car.

e

japan TargeTS 100 hydrogen STaTionS By 2015, 1.4 Million houSehold Fuel Cell generaTorS By 2020

left: The Mirai is not a pretty car but

beneath its body are multiple world-first

innovations that are crucial in making

fuel cell vehicles a viable business.

I S S U E 0 1 1


DRIVIng InTO ThE FuTuRE WITh FuEL-CELLs




A culmination of 20 years worth of research, and more than 10 years of worth of field trial (since 2002, with the Kluger-based FCHV model), the Mirai showcases many world first’s in FCV technology.

While many other car companies have opted to leverage on the strength of suppliers specialising in fuel-cell technology, or to collaborate with other car companies to develop FCVs, Toyota stubbornly insisted on doing it alone.

Daimler for example, worked with fuel-cell specialist Ballard Power System to develop its early FCV prototypes but in 2007, Ballard gave up on the project and sold the assets to Daimler to focus on less challenging, non-automotive applications.

Ballard’s then-CEO John Sheridan, said “Automotive fuel-cell technology development poses tough challenges,’’ adding that the technology is not viable for at least another 8 or 12 years, far longer than many car companies’ internal projection of five years.

In the following year, Daimler and Ford teamed up to form a joint venture called AFCC (Automotive Fuel Cell Cooperation Corporation). Both Daimler and Ford have produced a limited number of fuel-cell vehicles,

but like the Hyundai Tucson Fuel Cell, these are only for lease.

Mirroring its experience with the Prius, Toyota is a strong believer that when undertaking a project of strategic importance to the company, it is important to understand the basics of the technology to be in a better position to improve, and to reduce its cost over time.

“Toyota is currently the only company that makes hydrogen tanks and fuel cell stacks in-house. To make these by ourselves is kind of tough, but we are getting a lot of experience. We have many passionate engineers and they have been researching hydrogen [power] for more than 20 years. Now we are able to deliver,” said Toyota’s President Akio Toyoda during the Mirai’s launch.

Therein lies Toyota’s competitive advantage. By spending time to understand the basics of fuel cells and hydrogen storage, Toyota is able to better integrate the technology into its vehicles, and find ways to reduce cost, something which other carmakers have been unable to do.

The Toyota-developed 3D fine-mesh flow field fuel cell stack is a world’s first. By better integrating the fuel cell and its auxiliary components, the Mirai’s fuel

above: The fchv-adv was a development of an earlier kluger-based fchv prototype,

and served as a testbed for the Mirai’s technology. right: hydrogen can be

generated from multiple sources including waste water, using zero carbon solar power.

whIlE MANy oThEr

cAr coMpANIES

hAvE opTED To

lEvErAgE oN

ThE STrENgTh

of SupplIErS

SpEcIAlISINg

IN fuEl-cEll

TEchNology, or

To collAborATE

wITh oThEr cAr

coMpANIES To

DEvElop fcvS,

ToyoTA STubborNly

INSISTED oN DoINg

IT AloNE.

I S S U E 0 1 1





cell stack can be made lighter, more compact, requires less material to build and is therefore cheaper. Its rated power density of 3.1 kW/litre is also the world’s highest.

Compared to previous fuel cell stack designs, the Mirai’s unit is 52 kg lighter, and 24-litres smaller, while power density has been increased by 2.2 times.

Whereas other car maker’s fuel cell stacks require a heavy humidifier to ensure that the fuel cells remain moist to maintain conductivity, Toyota figured out a way to reuse the fuel cell’s byproduct water vapor, thus eliminating the need for a separate humidifier. This is another world’s first for the Mirai, shaving 13 kg and 15-litres off the previous design.

Another area in which Toyota managed to reduce cost, was in using a fuel cell boost converter that can be shared with its other hybrid models. The device increases the fuel cell stack’s output voltage from 250V to 650V, thus reducing the number of fuel cells required.

Other components like the NiMh traction battery, power control units

and traction motor are also shared with other Toyota hybrid models.

Another costly component in FCVs is the hydrogen storage tank. Conventional hydrogen storage tanks are big and heavy, thus requiring a larger but less energy efficient body, hampering driving performance.

To solve this, Toyota has been working on improving hydrogen storage solutions since 2000.

By improving the curvature of the tanks, the Mirai’s 70 MPa carbon fibre tanks’ (there are two tanks, each storing 5kg of hydrogen) are 38 per cent thinner than before. Despite having a world leading storage density of 5.7 wt%, the tank is still strong enough to withstand a shot from anything less than a .50 caliber bullet.

Innovations in carbon fibre layering patterns have allowed Toyota to cut down the use of expensive carbon fibre materials by a staggering 40 per cent!

While it is advanced, Toyota is under no illusion that the Mirai will be an immediate success, as unlike hybrids, FCVs require dedicated hydrogen supply infrastructure.

“Toyota is a full line company. We do electric or fuel cell, and now we can do both. But one issue we have to solve is [the lack of] hydrogen stations, but somebody has to start. We decided to go forward. The important thing is, if we believe [in hydrogen], then we should continue doing it,” Toyoda adds.

honda Could Spring a SurpriSe leadWhile Toyota was busy with the Mirai, Honda quietly rolled-out the latest iteration of its FCV Concept on the same week Toyota revealed its Mirai.

Although Honda conceded victory to Toyota in the race to popularise hybrid cars, Honda has dropped a few hints signaling its intent to assume leadership in FCVs.

Like Toyota, Honda is not new to FCVs. Honda introduced its first FCV in the same year as Toyota - the Honda FCX in 2002. Like the Toyota FCHV, the Honda FCX was only available for lease in Japan and USA.

After the FCX, Honda expanded its fleet trial by introducing its FCX Clarity in 2008, again only available for leasing,

above: honda fcv concept previews a 2016 production model. Top right: honda has been building fcvs since 2002. right: The production fcx concept will have all hydrogen powertrain components, including the fuel cell stack (but excluding the hydrogen tanks) installed within the engine bay.

I S S U E 0 1 1





What IS a FUEl CEll VEhIClE?

but the company said that a production FCV will be introduced in 2018.

Last month however, Honda announced that a production version of the FCV Concept shown at the recent Los Angeles International Auto Show will go on sale in March 2016.

Many of the production car’s details are still kept under wraps, but looking at the FCX Concept’s press materials, it is clear that Honda selectively revealed key data to suggest that its FCX will

pressure of 70 MPa.Honda’s trump card over Toyota

appears to be its packaging. While Toyota’s ability to reduce the size of the Mirai’s fuel stack is impressive, Honda says its in-house developed fuel cell stack can be fitted within the engine bay - a world’s first. Remember that the Honda’s fuel cell stack’s power output closely matches the Toyota’s.

The result is minimal intrusion of the fuel cell system’s components into the cabin.

While Toyota avoided distributing pictures of the Mirai’s interior cut-out, Honda gave the world a full view of the FCX Concept’s interior, highlighting its spacious cabin.

honda’S SoluTionS in exTraCTing and SToring hydrogenBeyond just making FCVS, Honda is actively involved in trying to solve the problem of limited hydrogen stations, and the costly process of extracting and distributing hydrogen.

In September, Honda in partnership with Japan’s largest supplier of hydrogen, Iwatani Corporation, installed the first Honda Smart Hydrogen Station - the world’s first hydrogen station that combines hydrogen extracting and vehicle refueling equipment.

Measuring just 3 metres long and 2.5 metres wide, the station is just a about the size of a car park, far smaller than an average petrol station. It also takes just one day to setup.

The station can draw power from a variety of sources - either from a power grid, solar panels or in the case of this particular station in Saitama, electricity generated from exhaust heat produced by a waste incinerator plant. It then extracts hydrogen from water using a novel ‘high-pressure water electrolysis’ process developed by Honda.

Conventional hydrogen stations require a compressor, which uses a lot

Fuel cell vehicles, which do not have

engines, should not be confused with

other hydrogen- powered vehicles with

engines. BMW for example, has previously

demonstrated a Hydrogen 7 model. That

car has a V12 engine that simply burns

hydrogen instead of petrol.

Fuel cell vehicles on the other hand,

are essentially electric vehicles that

generate their own electricity on-board by

combining hydrogen (stored in a tank) with

oxygen (from the air).

The device that generates electricity

from this electrochemical process is called

a fuel cell stack. The only by-product of this

process is water.

Fuel cell technology isn’t new. It has

been used commercially since 1959,

most notably by NASA’s space shuttles.

Widespread commercialisation of fuel cells

was hampered mainly by the high cost.

Although hydrogen is the most abundant

element in the universe, obtaining it isn’t

easy. This is because hydrogen doesn’t exist

on its own, it needs to be extracted from

other compounds like water, for example.

Extracting hydrogen can be energy

intensive and costly. Storing and

distributing hydrogen is also another

challenge, as it needs to be compressed

within a large and heavy tank.

However, as demonstrated by Honda’s

Smart Hydrogen Station, there are ways to

solve that.

Besides Japan, several other countries are

also promoting hydrogen as the energy of

the future.

The state of California in the US will be

setting up 68 hydrogen stations by 2015.

Germany, via the H2 Mobility project is

planning to roll out 50 hydrogen stations

by 2015, increasing it to 400 by 2023. The

project is supported by the German Federal

Government, Air Liquide, Daimler, Linde,

OMV, Shell and Total.

The United Kingdom is also embarking

on a similar project via their local H2

Mobility initiatives, aiming to support

the commercialisation of FCVs from 2015

onwards, with 65 hydrogen stations to be

built in the UK by 2020.

South Korea’s Green Car Road Map also

outlines the deployment of 168 hydrogen

stations by 2020.

match the Mirai’s performance.Take the fuel cell stack’s output

density, for example. At 3.1 kW/litre, it matches the Toyota, while power output is at ‘more than 100 kW’ (versus Toyota’s 114 kW).

As for cruising range, Honda says it is ‘more than 700 km’ while Toyota declares the Mirai’s to be ‘approximately 700 km.’ Both are tested using Japan’s JC08 driving cycle, refueled at hydrogen stations operating with a charging

I S S U E 0 1 1





of energy to run and is noisy. The Honda Smart Hydrogen Station is able to do away with a compressor, thus greatly reducing the station’s size and cost.

The station produces 1.5kg of hydrogen per day and can store up to about 18kg of hydrogen.

It currently costs about 450 million Yen to setup one station, but Honda says it is working to reduce the cost by 90 percent.

puBliC-priVaTe parTnerShip To Make japan leader in FCVSJapan’s lead in hybrid vehicle technology is no coincidence. It is the result of very careful, long-term planning by the Japanese government.

Japan’s former Ministry of

International Trade and Industry, (MITI, but currently known as Ministry of Economy, Trade and Industry or METI) oversees several organisations that are tasked in promoting competitiveness of Japan’s automotive industry - New Energy and Development Organisation (NEDO), the Japanese Electric Vehicle Association (JEVA), and the Japanese Automotive Research Institute (JARI).

As early as 1971, a council was established to look into electric vehicles. A budget of 5.7 trillion Yen was allocated to support R&D work for electric vehicles. As the technology matures, the plan evolved from covering just electric vehicles to include hybrids.

In 1997, MITI initiated the Advanced Clean Energy (ACE) vehicle programme, with a 600 million Yen budget to develop

the next generation hybrids. As for fuel cells, in 1992, NEDO initiated

the ‘Sunshine project,’ with a 1.85 billion Yen budget to develop fuel cells for power stations. Although the focus was not automotive, it greatly accelerated Japan’s understanding of fuel cells.

Now, NEDO has been tasked with rolling-out 100 hydrogen stations by 2015, and to bring down the cost of refueling a hydrogen car to be comparable to a petrol car.

Taking it one step further, Japan has set itself a goal of developing and promoting hydrogen to be a key energy source, not just for transportation, but also for residential and commercial use.

In December 2013, METI established the Council For Strategy For Hydrogen And Fuel Cells. By April 2014, Japan’s

IN 1992, NEDo

INITIATED ThE

‘SuNShINE proJEcT,’

To DEvElop

fuEl cEllS for

powEr STATIoNS.

AlThough ThE

focuS wAS NoT

AuToMoTIvE,

IT grEATly

AccElErATED

JApAN’S

uNDErSTANDINg of

fuEl cEllS.

above: honda’s Smart hydrogen Station in Saitama extracts hydrogen from water by using waste exhaust heat energy from an incinerator plant. Note the station’s small size. Below: A solar powered hydrogen station operated by honda in Saitama city.

I S S U E 0 1 1





ConTaCT uS

a-30-13, Tower a, 30th Floor,Menara uoa Bangsar,no.5, jalan Bangsar utama,59000, kuala lumpur,Malaysia

03 2776 6000

SalES EnqUIRIES [email protected]

EDItoRhans Cheong

[email protected]

thaIlanD CoRRESponDEntpisan ittiwattanakul

[email protected]

InDonESIa CoRRESponDEntSyubhan akib

[email protected]

aRt DIRECtoRkam li Mei

[email protected]

hEaD oF MEDIa SalESFenn Chia

[email protected]

Cabinet approved the Strategic Energy Plan and two months later, the Strategic Road Map for Hydrogen and Fuel Cells was published and shared with the public.

The road map explained that because hydrogen can be extracted from multiple sources, using renewable energy, and can be procured inexpensively from countries with low geo-political risk, it is a suitable solution to protecting Japan’s energy security.

It also said that Japan has the world’s highest number of patents in fuel cell technology, five times higher than the second placed country.

The road map is split into three stages, running from 2015 until after 2040.

The first phase of the road map involves introducing fuel cell vehicles

in 2015 and fuel cell buses by 2016. This explains the Toyota Mirai’s launch timing. Its aims to promote fuel cells are residential, rolling out 1.4 million fuel cell units to Japanese homes in 2020, before reaching 5.3 million units in 2030. Cost will also be low enough for consumers to recoup their investment within five years.

Phase 2 will run from 2020 to 2030, where hydrogen-based power generation stations will be introduced on a large scale.

Phase 3 will begin around 2040, with the final goal of establishing a carbon-dioxide-free hydrogen generation system using renewable energy sources.

h a n S C h e o n g

above: The Mirai’s fuel cell stack is located below the front row seats. left: honda’s more compact packaging fuel cell system means that the production version of the fcx concept is likely to have a more spacious cabin than the Mirai.

I S S U E 0 1 1





NO. 1

NO. 10

NO. 9

NO. 8

NO. 7

NO. 6

NO. 5

NO. 4

NO. 3

NO. 2

NO. 1

NO. 10

NO. 9

NO. 8

NO. 7

NO. 6

NO. 5

NO. 4

NO. 3

NO. 2

ToyoTa

Honda

nissan

ProTon

Ford

MiTsubisHi

audi

Mazda

Volkswagen

bMw

Toyota Vios

Honda City

Proton iriz

Honda Jazz

nissan almera

bMw 3-series

Ford ranger

Honda Civic

Perodua axia

Ford Fiesta

No change

B R A N D S

M O D E L S

ToyoTa

Honda

ProTon

MerCedes-benz

Perodua

bMw

nissan

audi

MiTsubisHi

Volkswagen

Toyota estima

Honda Civic

Toyota Vios

Toyota Camry

bMw 3-series

Toyota wish

Toyota Vellfire

Perodua Myvi

Honda accord

Mercedes -benz C-Class

iCarasia’s M o S T V i e W e d , S o r T e d B y p a g e V i e W S ( n O V E M b E R )

s p o t s3

s p o t s2

s p o t s2

s p o t s6

s p o t s7

s p o t s

3

s p o t s

2

s p o t s

2

s p o t

1

s p o t

1

s p o t

1

s p o t s

3

s p o t s

2

s p o t s2

s p o t s2

s p o t s5

s p o t1



japan’s hydrogen fuel cell roadmap should not be expensive,” sureethip said, adding that...

Documents