First EEV manufacturing licence in two months

by **Cals** Fri 07 Feb 2014, 08:27

Posted on 7 February 2014 - 05:41am

Premalatha Jayaraman
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KUALA LUMPUR (Feb 7, 2014): The government will be issuing the first manufacturing licence to produce energy efficient vehicle (EEVs) in two months, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

He said that the car manufacturer in question, a multinational one, will build EEVs in Malaysia primarily for the export market.

It will be the first from the three EEV manufacturing licences that are expected to be issued this year.

"This is part of the governments effort to transform Malaysia as EEV hub by 2020," he told reporters after the launch of National Automotive Policy 2014 Roadmaps and exchange of memorandum of understanding on manufacturing of electric bus and lithium ion battery, here yesterday.

He said the government aims to increase the value of auto exports, currently below RM1 billion per annum, in the next two to three years particularly EEVs.

According to Malaysian Automotive Institute (MAI), EEVs are defined as vehicles that meet a defined specifications in terms of carbon emission level and fuel consumption.

Mustapa said to ensure that the measures outlined in the NAP 2014 are effectively implemented, several roadmaps for the redevelopment of the domestic automotive industry have been drawn up.

Among them are Malaysia Automotive Technology Roadmap (MATR), Malaysia Automotive Supply Chain Development Roadmap (MASR), Malaysia Automotive Human Capital Development Roadmap (MAHR), Malaysia Automotive Remanufacturing Roadmap (MARR), Malaysia Automotive Bumiputera Development Roadmap (MABR) and Development of Automotive Authorised Treatment Facilities (ATF) Framework.

He said MATR details out the latest green technology trends and outlook. It also includes the rationalisation guidelines for automotive industry tax structure.

MASR is aimed at continuously enhance the operational effectiveness and efficiency of components and spare parts manufacturers. it includes measures to improve quality management systems, operation and business managements as well as to enhance capability in products testing and validation, he said.

MAHR outlines a plan for developing competent workforce at all levels within the auto industry, MARR outlines detailed criteria of remanufacturing, standards and best practices to be adopted by the auto players to make Malaysia as the centre of automotive remanufacturing in Asean.

MABR will focus on on activities related to development of technology, human capital and supply chain to enhance the competitiveness of the Bumiputera companies in the domestic automotive industry while AFT framework serve as guidelines to transform the automotive after market businesses in effort to dvelop a competitive automotive industry that is sustainable.

Meanwhile, the MoU signed yesterday between MAI, ARCA Corp Sdn Bhd, Australian based AutoCRC Ltd and Swinburne University of Technology of Australia was for the development and manufacturing of electric bus, lithium ion battery and public transportation information system.

Datuk Che Azizuddin, chairman of ARCA Corp, the company that will manufacture the buses, said the prototype of the bus will be out in the first quarter of 2015 with commercialisation in 2016.

He said the green buses will be made primarily for the domestic market to be used especially in Putrajaya, Langkawi, Greater Kuala Lumpur.

The MoU, which is extension to the existing corporation between Malaysia and Australia under the Malaysia Australia Free Trade Agreement (MAFTA), would see investment in excess of RM200 million for the development of electric bus and lithium ion battery system.