Going green with 100% EEV: MAI

PETALING JAYA: Malaysia is gearing towards launching only energy-efficient vehicles (EEV) by 2025, denoting a 100% EEV penetration, from 42.8% in 2016, said Malaysia Automotive Institute (MAI) CEO Datuk Madani Sahari.

“I believe by 2025, all new models to be sold in Malaysia will definitely be EEVs,” Madani told SunBiz.
However, he said this does not mean that all cars on the road will be EEVs by then, as there would still be non-EEVs from previous years.
The penetration of EEV, measured by the new models introduced, has hit 42.8% last year, surpassing the target of 40%.
“It (42.8%) is a good achievement. Car manufacturers are aggressively aligning their new business plans with the NAP (National Automotive Policy) 2014,” said Madani.
EEV penetration is further expected to reach 50% in 2017, 80% in 2020, before coming in at 100% in 2025.
As at 2016, 59 models have been certified as EEV. These models include Perodua Bezza 1.3 X Manual, Perodua Bezza 1.0 G Auto, Perodua Axia 1.0 G Auto, Honda City 1.5L E, Honda HR-V 1.8L V, Perodua Bezza 1.3 X AV, Perodua Axia 1.0 SE, Honda City 1.5L V, Honda Jazz 1.5L E, Toyota Vios, among others.
“Yes, we’re gearing to that (100% EEV). EEV is important to ensure that car is consuming minimal fuel and is emitting lower carbon,” Madani said, adding that countries like Germany requires all cars to be sold in the country to be EEVs.
Germany continues to lead the world in energy efficiency, followed by Italy and Japan, France, and the UK, according to the 2016 International Energy Efficiency Scorecard published by the non-profit American Council for an Energy-Efficient Economy. 
Moving forward, transitioning to greener alternatives will be a key part of Malaysia’s effort to reduce air pollution and carbon footprint.
EEV was the main highlight in NAP 2014, which aims to make Malaysia a regional automotive hub for EEV by giving out manufacturing licences for EEVs without restrictions.
EEV incentives are customised for both foreign direct investment and domestic direct investment, such as pioneer status, investment tax allowance; grants (research & development, training); infrastructure facilitation; lower taxes and expatriates.
“Every one is applying for the (EEV) incentives,” Madani said, adding that carmakers are jumping on these incentives since it was announced in NAP 2014.
HLIB Research automotive analyst Daniel Wong said achieving the EEV target depends on government policies that are encouraging the introduction of more EEVs in Malaysia and how strict is the government in terms of EEV implementation.
“If the government is strict on it, they’re going to continue to impose higher target of EEV in terms of fuel consumption per car and so on,” said Wong.
According to MAI, EEV is defined as vehicles that meet a set of defined specifications in terms of carbon emission level (g/km) and fuel consumption (l/100km). EEV includes fuel efficient vehicles, hybrids, electric vehicles (EVs) and alternatively-fuelled vehicles, such as compressed natural gas, liquefied petroleum gas, biodiesel, ethanol, hydrogen and fuel cell.
In the area of electric mobility, Malaysian Green Technology Corp (GreenTech Malaysia) has embarked on engagements on the feasibility of EVs, including the Tesla programme, where the government has approved for 100 Teslas to be imported into the country on a duty-free basis, to be leased to corporate leaders and key influencers to advocate the benefits of EVs.
To date, 17 Teslas have been delivered, adding to the 114 EVs of other makes currently on Malaysia roads. GreenTech Malaysia also aims to have 300 ChargEV stations in Malaysia by year-end, from 150 now.
“During our engagement with industry players and the public, we can definitely see the excitement for EVs in the market. The challenge was the price factor and to shift Malaysians away from the norm and embrace new technology.
“We’re beginning to see a gradual shift to EVs as these have proven to be a practical solution to pollution while also helping drivers to save cost on fuel and maintenance and providing a green option in transportation,” said GreenTech Malaysia CEO Ahmad Hadri Haris.