National Automotive Policy 2020 takes off
By CARSIFU | 21 February 2020KUALA LUMPUR: The National Automotive Policy 2020 (NAP 2020) was launched here today by Prime Minister Tun Dr Mahathir Mohamad, offering general directions without going into specifics.
The NAP 2020 would have a timeframe of 10 years to develop and advance the industry.
The overall intended outcomes of the NAP 2020 would be more research of new technologies, creation of business and jobs opportunities particularly for the SMEs, and the development of new manufacturing processes and value chains within the local automotive and overall mobility sector.
The ecosystem of the manufacturing and aftermarket sectors within the automotive and overall mobility industry would be enhanced, focusing on Next Generation Vehicle (NxGV), Mobility as a Service and Industrial Revolution 4.0.
Besides aligning with current technological advancements, the NAP 2020 will also improve on existing policy measures and implementation.
Participation of local companies in the domestic and global supply chain will be promoted, while other areas of focus are geared towards encouraging R&D and engineering activities, building capacity of local workforce, providing support for the national car projects as well as enhancing exports, investments and local production volume.
In his keynote speech, Dr Mahathir said the new Malaysian Vehicle Project would emphasise on research and development and the use of the latest technologies.
"New technology clusters as well as new expert workforce, especially in the field of automotive engineering would be developed consequently.
"The new Malaysian Vehicle Project is expected to contribute significantly to the nation’s economic development through its support for both the upstream and downstream industries – creating the demand of other related materials, such as, high-grade steel, plastics, rubber and petrochemical products, which will stimulate further growth of these sub-sectors."
On the biodiesel programme, Dr Mahathir said it would be upgraded from B20 to B30 by 2025. He said NAP 2020 would support the development of standards for testing and research to enable the increase of palm oil content in biodiesel.
On the disposal of batteries of hybrid vehicles and full electric vehicles, the NAP 2020 provides for end-of-lifecycle battery cells and waste management, he added.
The Prime Minister also said the NAP 2020 should be viewed as a balance and comprehensive policy document that will consider the interest of all stakeholders in the domestic automotive sector.
"NAP 2020 will set the pace for improvements and prepare our automotive industry to move towards the next phase of connected mobility."
Directions of the NAP 2020:
Direction 1: Technology and Engineering - development of critical components and systems for NxGV, MaaS and IR4.0, including systems and components within Automated, Autonomous and Connected Vehicles (AACV); IR4.0 technologies; light weight material technology as well as hybrid, electric and fuel cell vehicles.
Direction 2: Investment – customised incentives mechanism will be continued based on cost benefit analysis of specific business proposals by investors.
Direction 3: Market Expansion – measures to be introduced to increase export development, not only for vehicles and components, but also for aftermarket and services sector.
Strategies of the NAP 2020:
Strategy 1: Value Chain Development – to enhance the competitiveness of the domestic value chain in pursuit of high-quality and high-technology products that meet future standards of vehicle manufacturers and consumer needs.
Strategy 2: Human Capital Development – to develop local talent in tandem with current and future demands for automotive and mobility technology.
Strategy 3: Safety, Environment and Consumerism – to promote the adoption of new, more environmentally-friendly technologies in addressing the issue of emissions and vehicle safety, as well as to introduce the elements of consumer rights and protection related to spare parts and services, such as maintenance and recall process.
The roadmaps and blueprints would be reviewed and updated periodically to keep pace with disruptive and evolving global trends, technologies and demands.
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