A focus on the Automotive Industry 2018
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2017 is coming to an end! With that being said, it is time to move forward and anticipate what’s in store for the automotive industry in 2018.
On the bright side, the Malaysia Automotive Institute (MAI) is trying to shift its focus on the 2018 budget, targeting the automotive sector. This covers four segments; job opportunity for locals, a rise on new businesses, funding for industry players, and empowering existing businesses. This also gives hope for the locals to be trained in this sector with the proper allocation of budget.
According to http://www.themalaymailonline.com, Datuk Madani Sahari (Chief Executive Officer, MAI) hoped that the budget would not only empower existing businesses, but also workshops and vendors. Thankfully, this issue was brought up because the automotive industry needs many employees who are highly-skilled, be it in after-sales, manufacturing, or in the technical area. The MAI also urges the use of augmented reality next year to enhance the design process, with the element of “experience” in it. MAI will provide the capacity building while MIDF (Malaysian Industrial Development Finance) will provide the financing.
This initiative would encourage many enterprises from small to medium to be involved in the automotive sector. On a side note, the citing of 2018 budget for the automotive industry could be in form of tax exemption and reduction in import duties. According to AmBank Group Chief Economist, Anthony Dass, he said, “These savings could help lift carmakers’ margins from the doldrums, as well as lower car prices to stimulate demand.”
As part of the EEV initiative, Malaysia is targeting 80% or EEV penetration by year 2022. The EEV penetration in Malaysia is expected to take a hike to as much as 50% by end of 2017 after hitting 42.8% last year. A great example on the initiative would be Boon Siew Honda as they already started the development process to introduce hybrid vehicles in 2018 and electric vehicles in 2020.
All in all, many car makers and experts in the auto industry are hoping and anticipating for an uptrend in the automotive industry next year, especially in the EEV segment. So, buckle up, and get ready for an exciting year ahead! The automotive industry will maintain and grow in terms of technology and trends. To those who wish to venture into the automotive field, it will definitely be an exhilarating ride.