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Monday, June 9, 2008

Come 2009, let the hybrid car wars begin. Will we see more hybrids in Malaysia and Thailand?



The Star news daily recently carried a news on an expatriate couple who owned the most expensive Prius hybrid car in the world.


MALACCA: Long before the petrol price increase, permanent residents Harry Boswell and Stephanie Bacon decided to import a hybrid car unavailable here despite having to pay a hefty import duty.

Boswell, a 73-year-old engineer and Bacon, 66, who have been residing here since 2004 under the Malaysia My Second Home programme, are the proud owners of the only locally-registered Toyota Prius which is not marketed in Malaysia.


They further added “We approached several government agencies, including the Customs, but found that there were no tax incentives for the import of hybrid cars here,” Boswell said, adding that this was the reason why the car was not marketed here.

He said the total cost of the car plus freight charges was RM123,961, excluding the RM116,154 import duty. That's a total of RM 240k for a car that retails in US for 40% higher than a Toyota Corolla! The website EVWorld breaksdown Harry Boswell's car price as below :

UK retail price less tax $ 35,563.98
Shipping to Malaysia Port Klang via Singapore $2,039.26
Malaysian import duty, import tax and car tax $33,655.86
Import agents fees $428.54
Flat bed transporter for 120 miles to Melaka $130.39
Government vehicle identification, anti-smuggling test $24.34
Registration, road tax and number plates $170.95
Comprehensive insurance for two persons $745.25
Total price $ 72,758.57 or £ 36,927.594 or RM 251,105.832


However, Mr. Boswell was mistaken in saying that his Prius is the only one in Malaysia. I know that as of to date, there are 5 units of privately imported Prius in Malaysia. One is the silver unit belonging to Harry Boswell, one belongs to a private buyer in Perak, two more units in white and silver belonging to the local Toyota distributor in Malaysia; UMW Toyota Motor Sdn. Bhd., and another is a first generation Prius bearing the registration plate WQF 4310 (or something like that). I've personally seen the first generation Prius three times around Subang Jaya, PJ, and Shah Alam. I was also told that there is 1 unit of Estima Hybrid in Malaysia but the information could not be verified.


And by the way, Mr. and Mrs. Boswell designed their own energy efficient house in Melaka. It's probably the most energy efficient house in the region. Note the solar panels and energy efficient windows. More details on their website.

With the record high fuel prices hitting not only Malaysia but the rest of Asia Pacific, public interest in hybrid vehicles are only going to increase further. While hybrid vehicles like the Honda Insight, Civic Hybrid and Toyota Prius have been on sale in Europe, USA and other more developed markets in the world, adoption of hybrid vehicles have been slow in developing markets. In Asia Pacific, hybrid cars are only on sale in Japan, Taiwan, China, South Korea and Singapore. However in Thailand, I understand that there is rising activity of importing hybrid versions of large Japanese MPVs like Estima and Alphard by parallel importers as the official Toyota distributor Toyota Motor Thailand is not selling any hybrid Toyota models.

However, like in Malaysia, the Civic Hybrid is sold by Honda Automobile Thailand and Honda Malaysia. But sales of the Civic Hybrid have been less than encouraging, which probably explains why local Thai and Malaysian distributors are still reluctant to invest in supporting sales of the Prius on this side of the world. And in the case of Malaysia, the extremely high import duties levied on cars imported from outside ASEAN countries has artifically inflated the price of the Prius and Civic Hybrid to ridiculously high levels. The only hybrid on sale in Malaysia, the Civic Hybrid imported from Japan retails for over RM160k, higher than a domestically assembled Accord! But with fuel prices now reaching record high levels and removal of fuel subsidies by the Malaysian and Indonesian government, there could be a business case now.

The first stage of the hybrid cars battle started off when Honda and Toyota were racing to put the first mass-produced hybrid car in the world. Toyota won the first round with the 1st generation Prius when it beat Honda to hit the streets of the Japan in 1997, but Honda salvaged some ego by launching the Insight, the first hybrid car in the all important North American market - the world's largest car market. But by 2003, Toyota launched the vastly improved 2nd generation Prius. After that, Toyota just kept pulling away and the rest they say is history. Insight and Accord Hybrid have been discontinued due to poor sales and Civic Hybrid is playing second fiddle to the Prius.


Honda Insight and the 1st generation Prius. Not exactly the prettiest cars.

But Honda is not about to stay quiet while Toyota takes all the glory.

The hybrid cars battle will go into the next stage in 2009. In a recent press conference with Honda's global CEO Takeo Fukui revealed that the company will be introducing 3 new hybrid models starting from 2009. The first volume selling will be a small 5-door 5-seater hybrid car said to be positioned below Civic Hybrid but above the Jazz (Fit). Annual production target is 200,000 units from its Suzuka plant. The car, discussed within Honda as a Prius killer, is rumoured to have stylings inspired by the FCX clarity hydrogen fuel-cell car that is currently on lease to 200 customers around USA and Japan. The car could very well be the cheapest hybrid in the world. With its large volume plan and low price, I am holding some hopes that we might be able to see the car in developing markets of India and other SEA region.


Honda confirms that this is a small car hybrid is a dedicated hybrid only model with a distinctive design - like the Prius. Which is a very important point because the Civic Hybrid lost mainly because it lacks the distinctive design to appeal the greenies who are keen to make their environmental commitment public. It is believed that the car will carry many design cues from the FCX Clarity pictured above. Thus, I am quite skeptical about certain rumuors that the next generation Honda City (Fit Aria) will look similar to the FCX Clarity currently on lease to 200 customers to USA and Japan. The next generation City / Fit Aria will be introduced in 2009, and for the first time it will be on sale in Australia.


Next up will be a high performance hybrid coupe said to be similar to the CR-Z concept shown. The new hybrid coupe will be a 21st century iteration of the legendary CR-X. It is interesting to note that the first generation CR-X launched in the 1980s included an economical 1.3-litre HF grade (High Fuel Economy) which could easily deliver 50 mpg, better than many of today's hybrids. Almost 30 years later, the new successor to the CR-X will be back again to repeat what it did with the original, this time with 21st century technology with no compromises on crash safety.

The first generation CR-X HF sold in USA.


Last will be the Jazz (Fit) hybrid set to be launched in 2015. However, this will not be the current 2nd generation Jazz (pictured) but the 3rd generation Jazz which has yet to be revealed anywhere in the world. Unlike the earlier hybrid mentioned, this model could very likely feature lighter lithium-ion batteries rather than the conventional nickel-metal hydride.

It appears that Honda now have a different powertrain strategy. While Toyota fits its complex full/strong hybrid into larger cars, Honda believes in opting hybrid for smaller cars while the higher cost clean diesel engines are for bigger cars. Honda's IMA (Integrated Motor Assist) hybrid powertrain is less powerful than Toyota's Hybrid Synergy Drive but it is also a lot cheaper and less complex, thereby making it easier to integrate into other models.

Meanwhile Toyota is rumoured to preview the new 3rd generation Prius by January 2009 in the Detroit Motor Show. Sales should begin by 2010, maybe even end-2009. But contrary to earlier rumours, it will not feature lithium-ion batteries due to safety and reliability concerns. The new Prius will feature a new 1.8-litre 2ZR engine with 160bhp combined petrol-electric output (up from current 1.5-litre's 110bhp). It will also be dimensionally larger, about 3-4 inches longer and about 1-inch wider with no significant changes in weight. Lithium-ion plug-in hybrids could be introduce by Toyota to lease buyers from 2010 onwards.



Could this be the 3rd gen Prius?

In Asia Pacific, the new Prius will lead Toyota's renewed effort to penetrate the highly-hostile-to-foreign cars South Korea market, where owners of foreign cars are subjected to income tax audits. Joining it will be the RAV4 and Camry.

Also, the Prius nameplate will now become a sub-brand of Toyota rather than a model name. The Toyota group will now have 6 brands under its umbrella - Daihatsu kei-cars, Toyota-mainstream models, Scion-youth, Lexus-luxury, Prius-eco friendly, Hino-commercial buses and trucks. Like Honda, Toyota too is planning a 3-model assault of hybrid models, internally refered to as Prius A, B, C denoting their sizes. Prius A would be inspired by the 1/X concept while Prius C could be 2.0-litre to 3.0-litre hybrid to be launched in 2010 that could be introduced as a Lexus. Some say it could be have taller MPV-crossover like body style modelled after the Hybrid-X concept.



X-Mag reveals details of the next generation Prius line-up. Sorry I can't read Japanese.


And to answer any myth that hybrids run on fragile and expansive batteries and electronics - 1 million Prius have been sold to date. The figure is a lot higher if other Toyota / Lexus hybrid models are factored in. Not a single one of them have have had their batteries replaced due to wear and tear. A Canadian taxi driver have already covered 410,000 km in his Prius. Every car in the Yellow Cab Vancouver taxi fleet is now a hybrid. You can put to rest all those reliability concerns now. Likewise, Honda too have never replace a single hybrid battery pack due to wear and tear.

In March this year, The Straits Times reported that the Chief Engineer for Corolla Altis, Yasuyuki Kawamoto, has revealed to the press that Toyota would be assembling a hybrid version of the Camry in Thailand and that the introduction of Camry hybrid would happen within the current model life, which was launched in 2006 and is due for replacement in 2011. The news daily reported that the Camry Hybrid will likely be built at Toyota’s Gateway plant in Chachoengsao province. According to Toyota Motor Thailand, the final decision to assemble the Camry Hybrid lies with the parent company in Japan. "We are still in the study phase for this project and that’s why we brought in a fleet of Prius hybrid cars to test the market last year," said company spokesman Kij Mahajuntakarn.

UPDATE : Toyota Confirms to Produce Camry Hybrid in Thailand

Toyota has released a press statement that the Camry Hybrid will be built in Australia's TMCA Altona plant. Thus confirming earlier speculations from the Australian news daily The Age.


Australian Prime Minister Kevin Rudd and Toyota Motor Corp President Katsuaki Watanabe. Prior to being elected as Australian premier, Rudd was a Mandarin speaking diplomat.

The Camry Hybrid mentioned above are the global Camry (USDM / JDM) models that are different from the flagship Asian Camry models (also sold in Australia as the Aurion) that we have here in Thailand, Singapore, Malaysia, Indonesia, Taiwan and China.

Flagship Asian Camry


Global Camry (US and Japan Domestic market)

In other words, Thailand would most probably be producing a hybrid version of the Asian flagship Camry while Australia will manufacture the global Camry.

It is also worth noting that Australia is not the next most logical place to assembly the Camry Hybrid due to its strong currency. The deal was only possible due to strong lobbying from the Australian federal government headed by Prime Minister Kevin Rudd, Victorian state government headed by John Brumby and the Ministry of Federal Industry Kim Carr. Together, the team had earlier travelled to meet President of TMC Katsuaki Watanabe in March and within 3 months, the deal was confirmed. Prior to this, the current Australian Rudd administration had earlier put together a AUD 500 million Green Car Innovation Fund to spur growth of alternative powertrain.

I would love to see our own Ministry of International Trade and Industry (MITI) to at least take some proactive efforts in this area. Not making meaningless statements that the government is sharing the burden of the people by slashing entertainment allowances. These are wasteful practices that should not even exist in the first place! Not to be boasted about now as cost saving effort! Thailand too have pushing for a similar EcoCar project. It's Board of Investment (BoI) have been actively lobbying for car manufacturers to help turn Thailand into a regional export hub of eco-cars.


But all I hear from our local news daily is calls from our government asking us to "Ubah gaya hidup," a native Malay phrase for change of lifestyle, and tips to plant my own potatoes.

While I don't believe that hybrid are a solution to our energy and climate change woes, they are still a step forward that we need to make. The solution cannot come from auto companies with their own agenda. You would not expect car companies pushing for a more advanced integrated public transport system would you? The solution has to come from people changing their ways and value system towards life.

In this sense I admire Volkswagen's pragmatic approach when asked about its plan for its line of eco-friendly BlueMotion diesel models and diesel-hybrid Golf concept -

"Don’t get me wrong: we sell cars, we will never be a green company, but we should think about concepts that don’t really damage the environment, or do it less than others.”
- Volkswagen Group Australia (VGA) managing director Jutta Dierks on VW's role in environmental issues.


Golf TDi Hybrid concept.
Unfortunately the project have been shelved due to high cost of diesel engine.

VW have never cultivated a "greenie-hippie" image like one crafted by Toyota. Constrast this with Toyota's projected PR image of being a self-righteous company that frequently talks about growing in harmony with nature and all, but then goes on to built the massive environmental pig of a vehicle - the Tundra truck, and then joining other American car companies in lobbying against the new USA Federal Government CAFE standards that aims to increase fuel economy standards, angering many Prius owners along the way. Honesty, from VW. What an unusual place to find it.


Meanwhile, I reckon that the most fuel effcient "regular car" that the general public in South East Asia can afford to buy is the Honda City. In a fuel economy drive challenge done with 4 adults and their luggages on board, the City achieved 26 km/l. Easily matching many petrol-electric hybrid for half the price! It just goes to show how much difference can be made by simply altering our driving style to be more smooth. Maybe Harry Bosswell should have got themselves a City i-DSi and keep the change themselves. Fine the City does not have engine start-stop function and might produce more CO2 emission, fuel economy might not be as good in heavy traffic. But come one, how many kilometres must the Prius be driven to offset the carbon footprint created from shipping the Prius from Japan to UK to Singapore to Port Klang?!

To say "saving the environment" is wrong. The environment does not need us to save it from harm. Earth has been here for 4 billion years and it will continue to spin on its axis long after humans are extinct. In time the lakes, the land, the air, the sea will be clean again. We are the ones who need to save ourselves. Katrina and Narqis are only a preview of what's to come unless climate change is not stopped.


Related link :
Chevy Volt - GM's Messiah and Prius killer?
Third Generation 2009 Prius
Post Dot-com Bust - The Rise of Motorpreneurs?
Honda Insight 2
Hybrid vehicle tax incentive for Malaysia. Proton EVs soon?

1 comment:

Savahn said...

Please note that the Honda City i-DSI achieved 26km/l in what is considered highway conditions.

The good mileage is due to both engine and transmission package.