Cautiously optimistic outlook for motor industry

by **Cals** Mon 20 Jan 2014, 01:36

Published: Saturday January 18, 2014 MYT 12:00:00 AM
Updated: Saturday January 18, 2014 MYT 7:11:25 AM
Cautiously optimistic outlook for motor industry
BY EUGENE MAHALINGAM
PETALING JAYA: Automotive companies and observers are cautiously optimistic about the outlook for the sector this year as they gear up for challenges both unique and common within the industry.
For Nasim Sdn Bhd, the sole importer and distributor of Peugeot cars in Malaysia, there are still concerns about maintenance issues regarding European makes, according to chief operating officer Datuk Samson Anand George.
“There is that perception that European cars are more expensive to maintain, compared with Japanese brands. Although that perception is changing, it needs to change faster,” he told StarBizWeek.
George noted that automotive parts for its best seller, the Peugeot 208, were competitively priced compared with its Japanese counterparts.
With the National Automotive Policy (NAP) to be announced on Monday, Frost & Sullivan partner and head of automotive and transportation practice for Asia-Pacific Kavan Mukhtyar at a briefing recently said motor players would maintain a “wait and see” stance until there was sufficient clarity post the announcement.
He noted that one of the key elements of the NAP would be on making Malaysia an energy-efficient vehicles (EEV) hub.
Until details are revealed, automotive players are in the dark on how this, and other policies under the NAP, will have an impact on their business.
“Hopefully, the NAP would provide the necessary framework of policy and incentives to drive this development,” said Kavan.
George concurred that many automotive players are waiting on the sidelines as they anticipate further details of the NAP.
“We’re hoping that with the push for EEVs, the Government will consider incentives for vehicles with diesel-powered engines. There are many European models that are not in Malaysia because of the quality of our diesel fuel. Peugeot, for instance, is the only brand in the world with a hybrid-diesel model,” he said.