Perodua sales grow in East Malaysia, 35% market share

Perodua launched the Viva Elite Exclusive Edition in Sabah yesterday following the Peninsular launch two weeks ago, adding sales momentum to its best seller in East Malaysia. The small car maker aims to sell 600 units of the RM42,000 leather equipped Exclusive Edition per month.

According to Perodua MD Datuk Aminar Rashid Salleh, a total of 240,000 Vivas have been sold since it was launched in 2007 and the high spec Viva Elite is the best selling variant of the range from January to October this year, accounting for 41.4% or 24,000 units from a total of 58,000 units.

In East Malaysia, Aminar said that the Viva is the company’s best selling model at nearly 50% of total sales. “Of the 21,300 vehicles sold in East Malaysia, Sabah contributes 46% to our sales in this region and I believe this market still has a lot of room to grow,” Aminar told Bernama.

The firm has high hopes on East Malaysia. “Sabah and Sarawak are our fastest growing regions with nearly 14% contribution or 21,300 vehicles to our overall sales so far this year. We aim to increase sales contribution from this region from its current to 20% within five years,” he added. Perodua is the market leader in East Malaysia with nearly 35% of total industry volume.

now proton sets up for klims

Proton has announced its displays for KLIMS, which begins later this week – on show at its 1,500 sq metre booth will be 20 vehicles, including eight concept and show cars.

Highlights include the Saga EV (electric vehicle), which is driven by a brushless DC electric motor and powered by a 15 kWh lithium-ion polymer battery. The Saga EV can be quick-charged in just an hour or charged overnight between six and eight hours, with an estimated driving range of 100km.

Also on call will be the Exora Extended Range EV, which is currently undergoing the final phase of testing and validation, being targeted for commercial production as early as 2011, as well as the EMAS concept hybrid car and the race-winning Satria Neo Super 2000 rally car that competed in this year’s Intercontinental Rally Challenge (IRC) and Asia Pacific Rally Championship (APRC).

These will be joined by the new Lotus vehicles that made their debut at the Paris Motor Show; while the full list of Lotus models to be exhibited remain a surprise, the all-new Esprit is definitely penned in as an exhibit. Proton will also be having a live styling studio.

“Proton has come a long way over the last 25 years and the showcase at KLIMS 2010 is to share these accomplishments with all Malaysians,” Proton’s managing director Datuk Syed Zainal Abidin said in a statement. “Visitors will be able to have a better understanding of the technical capabilities Malaysians today possess, and we also intend to share with them some of the initiatives currently being undertaken moving forward,” he added.

Centsibly Speaking..

Proton Holdings Berhad registered a profit before tax of RM186 million in the first half of its 2010/11 financial year benefitting from the improved market sentiments and conditions which had accounted for a 13% increase in its vehicle sales.

The growing demand for Proton vehicles were significantly contributed by three core models; the Saga, Persona and Exora.

Cumulative Group profit before taxation rose to RM186 million compared to the profit of RM165 million posted in the corresponding period last year as a result of higher domestic sales and improved profit margins. The higher vehicle sales were also attributed to a growth of 14% in the total industry volume (TIV) in the first nine months of 2010 according to the Malaysian Automotive Association (MAA). The national car company sold a total of 40,205 vehicles in Q2 2010/11 compared to 42,520 units in the corresponding period last year.

Group profit before taxation at RM81 million for the individual quarter however, was lower than the RM105 million recorded in the immediate preceding quarter. This was attributable to a one-off provision for stock obsolescence, and branding and restructuring costs incurred by Group Lotus for the business turnaround exercise. This involved the launching of a new brand identity for Group Lotus and culminated with the worldwide unveiling of five brand new Lotus models at the Paris Motor Show in September.

Moving forward, the MAA expects that the upward trend for vehicle sales is unlikely to be as strong for the rest of the calendar year 2010 due to seasonal slowdown in purchasing towards the calendar year end.

“Proton remains confident that sales will continue to grow, on the strength of the public’s positive response towards the recently launched Inspira. This is envisaged to further improve the Group’s profitability and our market share in the domestic market,” said Proton Holdings Berhad Chairman Dato’ Sri Mohd. Nadzmi Mohd. Salleh.

“We are also encouraged by the overwhelming response received for the Inspira. As of yesterday, Proton had already received a total of 3,400 bookings for the Inspira since it was first opened for booking on 14th of October,” said Dato’ Sri Mohd. Nadzmi.

He also added that Proton’s performance going forward will also be backed by the introduction of refreshers and variants. He further explained that the Group will also focus on expanding into selected key markets, intensifying on branding and marketing initiatives, and continuing to invest in development activities and the acquisition of new technology.

Meanwhile, Proton’s Group Managing Director Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir said the Company intends to take an early advantage of and capitalize on the Government’s initiative to make Malaysia a regional hub for hybrid, electric and environmentally-friendly vehicles. One of the key announcements in Budget 2011 was in granting full exemption on the import and excise duties for hybrid cars below 2,000cc which includes electric cars, hybrid motorcycles and electric motorcycles until December 31, 2011.

“These exemptions would serve as an attractive incentive for local companies such as Proton to manufacture such vehicles in Malaysia. This will not only extend significant savings to car owners in terms of lower fuel costs but assists Proton in the forefront of promoting Malaysia as a regional hub for the development and manufacturing of green technology vehicles,” said Dato’ Haji Syed Zainal Abidin.

Proton is already in the final phase of testing and validating a Proton Exora Extended Range Electric Vehicle which is targeted for commercial production as early as 2011. The Proton Exora Extended Range Electric Vehicle had also earlier this month won the ‘Best Range Extender Electric Vehicle’ category in the inaugural Brighton to London Future Car Challenge organized by the prestigious Royal Automobile Club in the United Kingdom. The challenge is a motoring contest for Electric, Hybrid, and Low-Emission Internal Combustion Engine passenger cars. Winners were based on cars with the lowest energy consumption on the 91.2 km drive from Brighton to London.

Going against a more prominent name in the global green automotive industry, the Exora Extended Range Electric Vehicle emerged as the winner in its category after consuming only 2.2 litres of petrol during the entire Challenge. The win had benchmarked Proton against the best in the industry. Participation in the event was also an opportunity for Proton to demonstrate its technological capabilities and commitment in developing highly efficient fuel vehicles that are also environmentally friendly.

About Proton

Proton, established in 1983, is Malaysia's largest manufacturer of automobiles, and the only full-fledged OEM car manufacturer in South-East Asia. With operations in key markets from UK to the Middle East, and across South-East Asia and Australasia, especially in countries like China and Iran, Proton produces cars to suit a range of consumer demands and preferences.

Its offerings include versatile and reliable four-door family vehicles, two-door hatchbacks for the young-at-heart, luxurious and stylish executive sedans, spacious and affordable multi-purpose vehicles, as well as the world-renowned sports cars from Lotus. Most importantly, PROTON models are now developed with Lotus Engineering, offering customers superior ride and handling experience in every ride.

Proton’s inception as a key driver of national development has seen the brand accelerate its learning curve through technology transfer with strategic partnerships and technical collaborations. By listening to the needs of customers, PROTON’s cars are now steadily on track to achieve the mission for the future, with Proton set to become a marque which builds cars with passion and soul; cars that are a delight to drive - and a pleasure to own.

5008 set for KLIMS launch..RM 165 k estimated...

Nasim Sdn Bhd, official Peugeot distributor, will launch the recently spied Peugeot 5008 MPV at the 2010 Kuala Lumpur International Motor Show (KLIMS). The seven-seater will have an indicative price of RM165,000.

Like its 3008 sibling, the 5008 is powered by the THP 156 Prince engine. It’s a 1.6-litre twin scroll turbo engine with direct injection producing 156 hp and 240 Nm of torque. It’s paired to a six-speed auto gearbox with Tiptronic. Combined fuel consumption is rated at 7.9 litres per 100 km.

The dashboard design is similar to the 3008′s, which means you get a wraparound driver focussed “cockpit”. As is the norm for recent Peugeots, the MPV is very well equipped, and standard kit includes a head up display (HUD), leather, 18 sq ft panoramic glass roof, 17in rims and Distance Alert.

The latter has a radar which measures the time in seconds between 5008 and the vehicle in front, transmitting this data to the HUD. An alert can be set between 0.9 seconds and 2.5 seconds. The Available Space Measurement aid gives a visual indication of whether the 5008 can fit in a parking space.

There will be two 7-inch LCD screens in the front seat head restraints, two Bluetooth wireless headsets and a connection console for a DVD player or game console. This makes it possible to connect two video sources simultaneously – one screen for one rear passenger. By the way, the second row comprises three individual seats that can slide, recline and folded flat when you want the maximum 2,506-litre cargo space.

Safety wise, the five-star Euro NCAP rated 5008 has six airbags, Hill Start Assist, ESP, ABS, EBD, EBA, Anti-Skid Regulation, Dynamic Stability Control and anti-whiplash front seat headrest.

Proton’s Range Extender Electric Exora Prototype

Here’s something unexpected. We’ve not only got up close and personal with Proton’s prototype Exora EV, we’ve driven it already! And this wasn’t at a Proton event, but at the iGREET (Information on Green Technology) seminar series on green technology organised by Cyberview Sdn Bhd, the landowner of Cyberjaya. Proton was invited to this sixth and last iGREET session to talk about its foray into the electric vehicle scene.

As most know by now, Proton will roll out green cars in the near future that are often dubbed as “hybrid cars” by the media. In actual fact, the cars coming our way aren’t hybrids in the mould of the Prius or Civic Hybrid, but electric cars powered solely by batteries.

Proton’s Green Project Team is working with UK-based Fraser-Nash Research, Lotus, Imperial College London and Universiti Teknologi Malaysia (UTM) on a Range Extender Electric Vehicle or REEV – Proton is currently testing the REEV Exora with and without the range extender function, because it’s just a matter of switching the engine on or off.

Some of you might wonder what a range extender is? One of the main drawbacks of an EV is the limited range, and the RE engine takes care of this by providing the battery with juice when it runs dry. So you can reach your destination safely before plugging the car in. The Chevrolet Volt also uses such a system, where its ICE engine doesn’t power the wheels. The experimental RE in the Exora EV prototype is a 400 cc rotary engine with 50 hp. The mass production model most probably won’t come with a rotary, but the target is minimum 50 hp.

There are two electric motors powering this Exora – one for each front wheel. Each makes 35 kW to make 70 kW in total, while torque is rated at 220 Nm combined, available from rest. Proton has decided on the use of lithium polymer batteries, which is more advanced than the lithium ion variety, which is already better than the NiMH packs used in today’s hybrids. Targeted charging time from 10% to full is 6-8 hours while fast charging takes 30 minutes. Proton is aiming for 140 km/h top speed and 140 km range on the Saga body, so we’ll presume that the figures will be slightly less for the Exora.

A charging infrastructure is obviously needed, but at least EV drivers won’t be stranded due to the range extender engine. The REEV Exora is heading to production as early as next year, although nothing is confirmed at this point, which is why we don’t have a detailed technical analysis.

What we have however, is driving impressions of the REEV Exora. We drove the exact same car that won the “Best Range Extender EV” award at the Royal Automobile Club (RAC) Future Car Challenge in England earlier this month. Read it and view the pics after the jump!

15 Years, 50 Classics

To celebrate a decade and a half of publication, we asked our editors to look back and choose the articles that have had the greatest impact.

Since its inception, stratbiz has focused on the value of management thinking and practice. This week, we celebrate the magazine’s 15th anniversary by looking back at the wisdom we have published in our pages. Much of it is still worth reading now.

When we were founded in 1995 by former Harvard Business Review editor Joel Kurtzman and a group of farsighted partners at Booz & Company (then part of Booz Allen Hamilton), the dot-com era was just beginning, and the shape of the world economy was very different than it is today. Amazon had just been launched and Google did not yet exist; neither China nor India was seen as a global economic force. The United States, the magazine’s central focus at the time, was at a peak of prosperity, with rising equity prices, a sound federal budget heading toward surplus, and strong business confidence. How could anything published in those years matter to anyone in 2010?

Yet despite all the turbulence since then, there has been a slow but steady increase in knowledge involving economic value and organizational capability. Our magazine — through the editorships of Kurtzman (1995–2000), Randall Rothenberg (2000–2005), and me (since 2005) — has been at the forefront of developing and publishing that knowledge. Indeed, our primary editorial mission has been to help readers find the most profound and most pragmatic forms of management insight, and put it to use.

We polled the editors-in-chief, past and present (the three noted above), plus former editors Amy Bernstein, Lawrence Fisher, Ann Graham, and Larry Yu, to identify the articles in our first 60 quarterly print issues that are management classics. The articles most favored by the editors follow in chronological order. To help narrow what could have become a long list, I imposed one limit: no more than one article per single author, two per coauthor. In my view, all these pieces have stood the test of time. They are as relevant to management today as they were when they were first published.

1. Why CEOs Succeed (and Why They Fail): Hunters and Gatherers in the Corporate Life - Edward F. Tuck and Timothy Earle, Fourth Quarter 1996
An innovative venture capitalist and a prominent anthropologist explained why modern CEOs and boards play out the same roles that the chiefs and elders of prehistoric tribes established thousands of years ago.

2. Finding the Knowledge Needle in the Technology Haystack - David Berreby, Fourth Quarter 1996
Written when knowledge management was in its infancy, this article laid out some basic principles for finding patterns, trends, and relationships hiding in the stream of data generated by operations.

3. How to Manage Creative People: The Case of Industrial Light and Magic - Lawrence M. Fisher, Second Quarter 1997
The special effects shop that George Lucas founded built its success on good relationships, explained this frequent contributor. (Larry Fisher’s many other brilliant articles for s+b over the years included Creative Mind profiles of Jay Forrester, Ricardo Semler, and Fernando Flores.)

4. 10X Value: The Engine Powering Long-term Shareholder Returns - Charles E. Lucier, Leslie H. Moeller, and Raymond Held, Third Quarter 1997
A fascinating study of 30-year growth patterns of 1,300 publicly traded companies in the U.S. showed that it was possible to raise a company’s value 10-fold, by fostering the right kind of innovation.

5. How Harley Davidson Revs Its Brand - Glenn Rifkin, Fourth Quarter 1997
This piece profiled how the iconic motorcycle manufacturer, a pathfinder of nontraditional routes to marketing excellence, had built a community of enthusiasts around its product.

6. Are There Limits to Total Quality Management? - Arthur M. Schneiderman, Second Quarter 1998
The answer turned out to be yes: As companies go up the hierarchy, problems grow too complex for continuous improvement.

7. The Centerless Corporation: A Model for Tomorrow - Bruce A. Pasternack and Albert J. Viscio, Third Quarter 1998
This article proposed an organizational structure for high-performance companies that was based on lowering overhead and transaction costs, sharing services, and mastering capabilities.

8. The Last Mile to Nowhere: Flaws & Fallacies in Internet Home-Delivery Schemes - Tim Laseter, Pat Houston, Anne Chung, Silas Byrne, Martha Turner, and Anand Devendran, Third Quarter 2000
In the thick of the New Economy, the authors predicted the failure of much-hyped “Internet delivery” companies such as Webvan by demonstrating the trade-off between speed and variety. (Tim Laseter’s incisive Operating Strategies columns have appeared in the magazine ever since.)

9. The Third World Goes to Market - Stephan-Götz Richter, Third Quarter 2000
Richter was one of the first writers to notice how companies from emerging markets (like the Tata group in India) were buying established Western companies (like Tetley Group) and taking over global distribution channels.

10. Here Comes Hyperinnovation - Michael Schrage, First Quarter 2001
This piece examined how new prototyping methods had radically reduced the cost of testing products, services, and business models — effectively creating a new financial resource that could be called iterative capital. (Michael Schrage has contributed some of s+b’s most insightful essays, on topics as diverse as financial innovation literature, board practices for managing risk, and PowerPoint.)

11. Rethinking Strategy in a Networked World (or Why Michael Porter Is Wrong about the Internet) - Don Tapscott, Third Quarter 2001
The debate is far from settled over the question of whether open innovation (like Linux) or closed controlled innovation (like Apple) is better (especially with Apple ascendant in 2010). Nearly a decade ago, this well-known author laid out a compelling case for open source enthusiasm.

12. Jared Diamond: The Thought Leader Interview - Randall Rothenberg, Third Quarter 2001
China lost to the West during the Renaissance, said this master evolutionary historian, because it was too unified. In this wide-ranging interview, he suggested the same may be true of some businesses.

13. The Fortune at the Bottom of the Pyramid - C.K. Prahalad and Stuart L. Hart, First Quarter 2002
Prahalad, who passed away early in 2010 after a sudden illness, lived to see this seemingly outlandish concept — low-income markets as a prodigious opportunity — become part of the strategy and operating model of companies around the world. (C.K. Prahalad’s other articles in s+b, such as “The Innovation Sandbox,” were also compelling and influential.)

14. Profits and Perils in China, Inc. - Kenichi Ohmae, First Quarter 2002
This was one of the first articles to point out how the new Chinese geopolitical model — the country as corporation — balanced central control with decentralized freedom. It also represented the first major piece by this expert on global strategy about China.

15. What Are the Measures That Matter? - Art Kleiner, First Quarter 2002
As a columnist and profile writer, I published 28 major articles in s+b between 2000 and 2005. I’m proudest of this one, the story of the fierce philosophical feud between two former coauthors and colleagues: balanced scorecard inventor Robert Kaplan and metrics skeptic Tom Johnson.

16. Why CEOs Fall: The Causes and Consequences of Turnover at the Top - Chuck Lucier, Eric Spiegel, and Rob Schuyt, Third Quarter 2002
This was the first of Booz & Company’s groundbreaking annual studies of CEO succession, showing why CEO tenure is ever shorter and more intense — and how chief executives can compensate.

17. The Barista Principle: Starbucks and the Rise of Relational Capital - Ranjay Gulati, Sarah Huffman, and Gary Neilson, Third Quarter 2002
This piece represented an early recognition of how the trendsetting coffeehouse chain grew by cultivating relationships with employees, suppliers, and customers.

8. Globalism without Tears: A New Social Compact for CEOs - Jeffrey E. Garten, Fourth Quarter 2002
The Yale School of Management dean prophesied the end of the “golden age of capitalism” in the West and put forth a workable definition of social responsibility.

19. What Strategists Can Learn from Sartre - James Ogilvy, Winter 2003
Strategic thinking can benefit from philosophy. In this reflective piece, the author explained why in an uncertain world where competitive advantage is insecure, setting strategy must become an existential exercise.

20. Smart Customization: Profitable Growth Through Tailored Business Streams - Keith Oliver, Leslie H. Moeller, and Bill Lakenan, Spring 2004
This article introduced the striking new concept of TBS (an abbreviation still in use at Booz & Company) — a pragmatic way for companies to manage the complexity of supply chains by differentiating their offerings.

21. Leadership Is a Contact Sport: The “Follow-up Factor” in Management Development - Marshall Goldsmith and Howard Morgan, Fall 2004
Working in what was then the relatively new field of executive coaching, the authors revealed the single most important factor in helping leaders become capable: following up to reinforce what these individuals learn about themselves.

22. The Cat That Came Back - Gary L. Neilson and Bruce A. Pasternack, Fall 2005
This was the best of our articles on the influential concept of organizational DNA: How companies (in this case, Caterpillar Inc.) aligned decision rights, information flow, motivators, and the “lines and boxes” of the hierarchy to create a high-performance culture.

23. Money Isn’t Everything - Barry Jaruzelski, Kevin Dehoff, and Rakesh Bordia, Winter 2005
In the first of Booz & Company’s ongoing studies of global corporate R&D spending, the authors examined the “Global Innovation 1000” — the world’s biggest research and development spenders — and the complex link between their spending patterns and corporate performance.

24. China’s Five Surprises - Edward Tse, Winter 2005
Our best article on China (and an early precursor of Tse’s book The China Strategy: Harnessing the Power of the World’s Fastest-Growing Economy [Basic Books, 2010]) noted that in this rapidly changing country, the past will never be the most accurate guide to the future.

25. Beauty Parlors, Barbershops, and Boardrooms - Leslie F. (“Skip”) Griffin Jr., Winter 2005
Foremost among our many great First Person essays, this mini-memoir explained why leaders of corporate change have a great deal to learn from the American civil rights movement.

26. Manufacturing Myopia - Kaj Grichnik, Conrad Winkler, and Peter von Hochberg, Spring 2006
The premise laid out in this piece is still true: Instead of drifting into decline, producers of goods have a chance to seize the future by cultivating better awareness about manufacturing costs and means.

27. Love Your “Dogs” - Harry Quarls, Thomas Pernsteiner, and Kasturi Rangan, Spring 2006
In an article that took a hard look at business unit portfolios, the authors argued that the conventional wisdom about portfolio management, favoring a focus on nurturing “stars,” was wrong. Corporations need instead to foster poor performers to gain value.

28. City Planet - Stewart Brand, Spring 2006
This piece, which was later adapted into a chapter of Stewart Brand’s book Whole Earth Discipline: An Ecopragmatist Manifesto (Viking, 2009), presented a new context for business and everyone: Suddenly, half the world’s human population is urban. The founder of the Whole Earth Catalog described an imminent future age of cosmopolitan, thriving, chaotic new cities.

29. The Future of Advertising Is Now - Christopher Vollmer, John Frelinghuysen, and Randall Rothenberg, Summer 2006
After years of overhype, the digital revolution finally arrived — and marketers didn’t recognize it in time (unless they read this article). Adapted by Vollmer into a best-selling book (Always On: Advertising, Marketing, and Media in an Era of Consumer Control, [McGraw-Hill, 2008]), it was also the first of an ongoing series of Booz & Company articles on the evolution of the marketing–media–advertising ecosystem.

0. The Megacommunity Manifesto - Marc Gerencser, Fernando Napolitano, and Reginald Van Lee, Summer 2006
The authors showed how public, private, and civil leaders could confront together the problems that none could solve alone. This article’s ideas were explored in depth in Megacommunities: How Leaders of Government, Business and Non-Profits Can Tackle Today’s Global Challenges Together (Palgrave Macmillan, 2008).

31. The Neuroscience of Leadership - David Rock and Jeffrey Schwartz, Summer 2006
Change is pain, behaviorism doesn’t work, focus is power, and the key to performance is attention. This article was the starting point for neuroleadership, a now-burgeoning new field of management study and practice.

32. The Flatbread Factor - Alonso Martinez and Ronald Haddock, Spring 2007
This piece took the humble but widely used food staple, flatbread (found in wraps and burritos), as a jumping-off point for considering the spread of global businesses. According to the authors, emerging markets, from China to Brazil to eastern Europe, have strikingly similar life cycles.

33. Lights! Water! Motion! - Viren Doshi, Gary Schulman, and Daniel Gabaldon, Spring 2007
In this alarming assessment, the authors estimated the price for updating the world’s aging, and in many cases failing, energy, water, and transportation infrastructure at US$40 trillion.

34. The Empty Boardroom - Thomas Neff and Julie Hembrock Daum, Summer 2007
Corporate board recruits with CEO experience are in short supply — and that’s good news, according to this provocative article by two senior leaders at the global executive search firm Spencer Stuart.

35. The Science of Subtle Signals - Mark Buchanan, Autumn 2007
Previously overlooked behavioral cues that are now coming from sensors and in-depth workplace observations are changing management wisdom. This is one of several articles by Mark Buchanan on the application of new science in management.

36. Rebuilding Lego, Brick by Brick - Keith Oliver, Edouard Samakh, and Peter Heckmann, Autumn 2007
One of our most compelling corporate profiles recounted how a supply chain transformation put the beloved toymaker back together again. It also explored the difficult choices facing any company that needs dramatic change.

37. The Google Enigma - Nicholas G. Carr, Winter 2007
This was the best of Nick Carr’s great columns on innovation. He looked at this rapidly growing Internet company as few others did: not as a model for business in general, but as an anomaly that thrived by planting free Internet innovations to complement its money-making search engine ads.

38. Best Business Books, Biography: Life Lessons - James O’Toole, Winter 2007
Every year, Jim O’Toole writes a captivating essay about the current wave of literature on leadership, CEO memoirs, or whatever he feels like (“miscellany”); this one engagingly discussed the great business biographies of Andrew Carnegie, Thomas Edison, and Andy Grove that came out in 2006 and 2007.

39. Oasis Economies - Joe Saddi, Karim Sabbagh, and Richard Shediac, Spring 2008
Open, diversified, economic growth represents a new force for stability in the Middle East. This was the first in a series of groundbreaking s+b articles about a quiet but pervasive wave of change in this region with geopolitical implications.

40. Lessons for Business Schools - Andrea Gabor, Spring 2008
One of our best Knowledge Reviews essays discussed the books that illuminate the irrelevance of today’s MBA — and that propose ways to make it compelling again.

41. The Next Industrial Imperative - Peter Senge, Bryan Smith, and Nina Kruschwitz, Summer 2008
The industrial era is bursting like a bubble, wrote these influential thinkers from MIT and the Society for Organizational Learning. Global climate change is just the advance signal.

42. P&G’s Innovation Culture - A.G. Lafley, with an introduction by Ram Charan, Autumn 2008
This follow-up or “missing chapter” to the authors’ best-selling book, The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation (Crown Business, 2008) discussed the human changes that were needed to foster P&G’s remarkable strategic renaissance during the 2000s.

43. The Practical Wisdom of Ikujiro Nonaka - Sally Helgesen, Winter 2008
The author’s compelling Creative Mind profiles include this remarkable portrait of the venerable Japanese advocate of phronesis: ingrained wisdom as a business practice.

44. How to Win by Changing the Game - Cesare Mainardi, Paul Leinwand, and Steffen Lauster, Winter 2008
This was the magazine’s first major piece on capabilities-driven strategy, laying the groundwork for Leinwand and Mainardi’s book The Essential Advantage: How to Win with a Capabilities-Driven Strategy (Harvard Business Press, 2010).

45. Not Just for Profit - Marjorie Kelly, Spring 2009
This article discussed an intriguing new business model for an age some consider ethically challenged. Companies with “for-benefit” objectives are redefining corporate governance, and creating an alternative to the conventional charter.

46. The Best Years of the Auto Industry Are Still to Come - Ronald Haddock and John Jullens, Summer 2009
This article, published the same week that General Motors declared bankruptcy, argued for taking a longer view. Millions of new automobiles will be sold in emerging markets. The motor vehicle industry, according to the authors, is poised for a wild ride.

47. The Trouble with Brands - John Gerzema and Ed Lebar, Summer 2009
Very few brands have the dynamism and energy to hold consumer loyalty. The authors examined some “energized” attributes that can help companies achieve far more effective marketing.

48. The Talent Innovation Imperative - DeAnne Aguirre, Laird Post, and Sylvia Ann Hewlett, Autumn 2009
Any company that competes on the global stage must, in light of today’s changing workforce, rethink the way it manages people. This piece helped them do just that.

49. Too Good to Fail - Ann Graham, Spring 2010
Former s+b deputy editor Ann Graham profiled India’s Tata, a giant, diverse conglomerate in business since 1868. The company bases its global strategy on social entrepreneurship.

50. Why We Hate the Oil Companies - John Hofmeister, Summer 2010
In an article that was published just before the Deepwater Horizon oil spill, the former CEO of Shell Oil spelled out how corporate leaders create their own reputations for arrogance.

The Coherence Profiler

An interactive diagnostic test can show you how focused your company’s activities are — with sometimes surprising results.
by Art Kleiner
ach of these four sources of value reinforces the others. Alignment makes it easier to integrate people across the company, which leads to greater effectiveness as colleagues learn from colleagues. An ethic of careful investment leads people to find ways to use their capabilities in more parts of the organization. Before too long, your company can grow at a faster pace, and at lower cost, than it ever could before.

One final note: Although the Coherence Profiler is focused on the performance of individual companies, the results will also help test a hypothesis about the evolution of industries. The authors believe it will help show the ways in which specific segments reward their most coherent competitors. When you answer the questions and provide us your contact information, you will gain access to this research, which may ultimately reveal the underlying forces that separate short-lived from long-lived companies in your industry.
Author Profile: * Art Kleiner is the editor-in-chief of strategy+business and the author of The Age of Hereti

During the past year, as part of the research and development of the capabilities-driven strategy concept, a few companies have been looking more closely at their own coherence. The results are beginning to show a link between performance and strategy — but not in the way that many companies currently think of their strategy. The difference is coherence. You can see what that means, and compare your company to others in your industry, by taking a brief online survey: the Booz & Company Coherence Profiler.

The word coherence, to many businesspeople, suggests simply having your act together — doing business with better-than-average uniformity and coordination. But in the forthcoming book The Essential Advantage: How to Win with a Capabilities-Driven Strategy, by Paul Leinwand and Cesare Mainardi (Harvard Business Press, 2010), the word means something much more specific. For a company to be described as coherent, it must be resolutely focused on the interrelationship among three critical elements: its market position (its chosen “way to play” against competitors); its most distinctive capabilities, which work together as a system; and its product and service portfolio. In a coherent company, the right lineup of products and services naturally results from conscious choices about the capabilities needed for a deliberate way to play.

The questions in the Coherence Profiler, designed by Leinwand, Mainardi, and a Booz & Company team, take about five minutes to answer. They are designed to accomplish two things. First, the test provides a real-time diagnostic for those filling it out, identifying the relative level of coherence in any company or business unit. This gives managers an immediate sense of their business’s effectiveness in applying their capabilities to growth strategies, cost cutting, and the setting of management priorities. It also provides a rapid benchmark against competitors: Businesses can see immediately how coherent or incoherent their business is compared with others in their sector.

Second, by collecting information across companies, the test is building a body of knowledge about strategic choice. When managers profile their companies, in other words, they become part of a broad-based research effort that is testing the link between coherence and performance. Although the data is gathered anonymously, participants can opt to submit their e-mail address separately — and they will then receive updates on capabilities-driven strategy and related research.

Leinwand and Mainardi have proposed that coherence yields a consistent premium in performance derived from four sources of value:

* Effectiveness. Day in and day out, you become more effective where it matters most. You “sweat” your capabilities, refining and developing your methods and processes. Because your capabilities reinforce one another in a system, they improve more rapidly than the capabilities of your less-coherent competitors. Your people become more skilled; your systems grow more adept; your profitability improves. As you advance, other companies find it more and more difficult to catch up.

* Efficiency. As you apply your capabilities more broadly across more products and services, your investment in each of them goes further and you can build them up with more power. Small parts of your business, those that could never afford, say, a highly distinctive merchandising system on their own, can take advantage of this capability along with the rest of your company.

* Focused investment. By allocating capital and expense more deliberately and effectively, you focus more on the capabilities that differentiate your company competitively and less on what Gary Hamel and C.K. Prahalad called table stakes — the necessary competencies and skills that every competitor brings to this market. You don’t fund unnecessary R&D projects or marketing campaigns. You invest in depth where depth is needed, and go light where you should go light.

* Alignment. When you commit to a strategy and articulate it clearly, everyone has a common basis for the day-to-day decisions they make. Throughout your company, people in different businesses and different geographic areas are more likely to understand one another, and to make decisions independently that are nevertheless in sync. More-coherent decision making becomes part of your company’s culture. The advantage this gives you over less-coherent competitors is palpable.

next to share? the ASX ..

The Mitsubishi ASX is here. This is the third and final part of the new model onslaught (after the Pajero and Lancer Sportback) by Mitsubishi Motors Malaysia, which surely must be the busiest car company in the second half of 2010. The ASX, which was introduced in Japan as the RVR earlier this year, is billed as a compact crossover that aims to combine the good points of an SUV and a sedan.

At under 4.3 metres long, the ASX is noticeably smaller in footprint than the CR-V and X-Trail, but its 2,670 mm wheelbase actually betters the Honda and Nissan. The platform sitting under this 2WD crossover is adapted from bigger brother Outlander. Going with the compact and agile theme, turning radius is a class leading 5.3 metres. The suspension consists of MacPherson struts up front and multi links at the back, while the steering is an electric system.

The ASX is powered by the 4B11 2.0-litre engine as found in the Lancer. This DOHC 16-valve MIVEC unit produces 150 PS and 197 Nm of torque, which is slightly less than the C-segment sedan’s 155 PS/199 Nm, but it’s tuned to suit this application. Doing transmission duty is an INVECS-III CVT with 6-speed Sports Mode, controllable via nice and long magnesium shift paddles.

The kit list includes Active Stability Control (ASC), Hill Start Assist, dual front airbags plus a driver’s knee airbag, leather seats, cruise control, auto air con and a 2-DIN touch screen ICE system. The latter incorporates a reverse camera. Fully imported CBU from Japan, the ASX retails at RM139,980 OTR inclusive of insurance.

We’ve driven the ASX already – once in Japan and once in beautiful Langkawi – so look after the jump for our impressions and verdict!

Just a raised Lancer? That was what I expected before driving the ASX, but after two rounds of testing Mitsubishi’s compact crossover at the company’s Tokachi proving ground in Hokkaido and then closer to home in Langkawi, the ASX proved to be much more than that. Certain aspects that we don’t like about the Lancer have disappeared altogether!

Let’s start from the inside. It won’t take long to notice the more premium feel and better quality over the Lancer. Instead of making the entire dash panel out of soft plastic, Mitsubishi added a piece of slush material on the surface of the dash where your hands can reach. The front door caps are also of the same material, although the rear ones don’t get this treatment. The area where you rest your elbows are also padded and leather covered.

Leather is also found covering the seats, steering wheel and gear knob. It’s all in black, and the centre stack is in glossy black as well. There’s some silver and chrome accents to break the monotony. As usual for Mitsubishi, the area central to the driver is nicely done – the instruments are sporty and classy at the same time, the high-res full colour LCD trip computer display is cool and the three-spoke wheel feels as good as it looks. Making a repeat appearance are those long magnesium shift paddles that have a substantial action.

The centrepiece of the dash is the Kenwood touch screen entertainment system. This 2-DIN unit also doubles up as a display for the reverse camera. All the above combine for a pleasant interior that’s streets ahead of the Lancer in quality and fit – no unsightly gaps here! A good driving position is easy to find, the steering is adjustable for reach and the driver’s seat has a big height range.

We’re no big fans of the 4B11/CVT combo in the Lancer, which tiring drone is very uninspiring. And while the ASX uses the same engine and gearbox, the workings seem to much better insulated from the cabin. It feels sprightly from the get go, and there’s less of the elastic CVT response when you floor the pedal. Besides feeling more natural in D, the gearbox’s manual mode comes in handy in fast driving where you need immediate response. Performance and acceleration is entirely adequate, and there weren’t any situation where it was found to be lacking.

I was pleasantly surprised by the performance and looked up the specs. More surprise was in store. The ASX’s low kerb weight of 1,375 kg is actually 10 kg less than the Lancer GT’s, while the comparatively lethargic feeling Honda CR-V weighs 1,540 kg. That explains it all.

The ASX’s compact footprint suggests an agile crossover, and it delivers in the drive. The well weighted steering is precise and has reasonable feel, while the other controls feel natural. Wearing 16-inch wheels with high profile 65 series rubber, the ASX rides very well over bad roads, soaking up most of what Langkawi tarmac threw at it with ease. There’s some body roll in corners, but it’s not of the off-putting variety and doesn’t distract from the business of driving.

It’s no sports car of course, but the ASX isn’t too uncomfortable under hard driving, and you won’t feel awkward pushing it too. The addition of ASC in addition to ABS and EBD is commendable, as is the driver’s knee airbag.

Boot space isn’t spectacular but decent considering there’s a full sized spare inside the car, and the load height is quite low. It would be great if the Lancer Sportback’s handy seat folding levers were included here as well. Although the ASX’s wheelbase is 50 mm longer than the CR-V’s, it’s not reflected in rear legroom, which is more apparent in the Honda, proving that bare figures don’t tell the full story. Headroom isn’t generous, but adequate, and the ASX feels more compact inside than in a CR-V or Nissan X-Trail. Feels roomier than the Peugeot 3008, though.

There’s nothing groundbreaking about the Mitsubishi ASX, but it’s a likable car that’s decent to drive. Personally, I like its compact size, but reckon that there will be as many whose idea of an SUV/crossover is of a bulkier vehicle with more presence. If that’s you, the ASX won’t be in contention, but if you’re sold, the ASX’s attractive sub RM140K price tag plus two years free maintenance package will help to seal the deal.

The ASX will be showcased at Midvalley’s Centre Court from 10-14 November. There are 13 optional interior and exterior accessories from Japan brought in by MMM for the ASX retailing at RM6,490 per package. The fully kitted car will be on show in Midvalley as well.

The Last Sermon of the Prophet Muhammad (peace be upon him)

The last sermon of the Prophet-peace be upon him- is known as Khutbatul Wada'. It is mentioned in almost all books of Hadith. Following Ahadith in Sahih Al-Bukhari refer to the sermon and quote part of it. See Al-Bukhari, Hadith 1623, 1626, 6361) Sahih of Imam Muslim also refers to this sermon in Hadith number 98. Imam al-Tirmidhi has mentioned this sermon in Hadith nos. 1628, 2046, 2085. Imam Ahmed bin Hanbal has given us the longest and perhaps the most complete version of this sermon in his Masnud, Hadith no. 19774.

This Khutbah of the Prophet-peace be upon him- was long and it contained much guidance and instructions on many issues. The Prophet-peace be upon him- gave this sermon in front of a large gathering of people during Hajj.

Whosoever heard whatever part of the sermon reported it and later some scholars put it together. It is a great khutbah and we should all pay attention to its message and guidance. Following are the basic points mentioned in this khutbah:

O People
Lend me an attentive ear, for I know not whether after this year, I shall ever be amongst you again. Therefor listen to what I am saying to you very carefully and take these words to those who could not be present here today.

O People
Just as you regard this month, this day, this city as sacred, so regard the life and property of every Muslim as a sacred trust. Return the goods entrusted to you to their rightful owners. Hurt no one so that no one may hurt you. Remember that you will indeed meet your Lord, and that He will indeed reckon your deeds. Allah has forbidden you to take usury (interest); therefore all interest obligation shall henceforth be waived. Your capital, however, is yours to keep. You will neither inflict nor suffer any inequity.

Allah has Judged that there shall be no interest and that all interest due to Abbas Ibn ‘Abd al Muttalib (the Prophet's uncle) shall henceforth be waived.

Beware of Satan for the safety of your religion. He has lost all hope that he will ever be able to lead you astray in big things, so beware of following him in small things.

O People
It is true that you have certain rights in regard to your women, but they also have rights over you. Remember that you have taken them as your wives, only under Allah's trust and with His permission. If they abide by your right then to them belongs the right to be fed and clothed in kindness. Do treat you women well and be kind to them, for they are your partners and committed helpers. And it is your right that they do not make friends with anyone of whom you do not approve, as well as never to be unchaste.

O People
Listen to me in earnest, worship Allah, say your five daily prayers (Salah), fast during the month of Ramadan, and give your wealth in Zakat.

Perform Hajj if you can afford to.

All mankind is from Adam and Eve, an Arab has no superiority over a non-Arab nor a non-Arab has any superiority over an Arab; also a white has no superiority over a black, nor a black has any superiority over a white- except by piety and good action. Learn that every Muslim is a brother to every Muslim and that the Muslims constitute one brotherhood. Nothing shall be legitimate to a Muslim, which belongs to a fellow Muslim unless it was given freely and willingly. Do not therefor, do injustice to yourselves.

Remember one day you will appear before Allah and answer for your deeds. So beware, do not stray from the path of righteousness after I am gone. People, no prophet or apostle will come after me and no new faith will be born. Reason well therefore, O people, and understand words which I convey to you. I leave behind me two things, the Quran and the Sunnah (Hadith), and if you follow these you will never go astray. All those who listen to me shall pass on my words to others and those to others again; and may the last ones understand my words better than those who listened to me directly. Be my witness, O Allah, that I have conveyed your message to your people."

“…This day have I perfected your religion for you, completed My Grace upon you, and have chosen Islam for you as your religion…” (Quran 5:3)

Platform sharing ,economies of scale and Daihatsu Boon?

THE Inspira is supposed to inspire Proton lovers.
However, the rebadged Mitsubishi Lancer has drawn both brickbats and praises from Malaysian motorists.
The new Proton Inspira, which is due to be launched this week, has aroused many emotions - from Kinabatangan MP Datuk Bung Mokhtar Radin’s outburst in Parliament to our reader, Dominic Pillai, from Penang (see letter below).
Bung Mokhtar, also the backbenchers club's deputy chairman, said that Proton’s use of the Mitsubishi Lancer platform had embarrassed the nation.
“Proton said it would cost RM700 million to produce a new car. If it cannot afford (to design a new model), then just close down,” he said while debating Budget 2011.
Pillai contended that the Proton Inspira, with 26 per cent local content, should cost less than the fully imported CBU (completely built-up) Mitsubishi Lancer as sold in duty-free Langkawi at RM72,000.
The problem is not that Proton can’t develop its own car or that the Inspira is more expensive than its mechanical twin, the Mitsubishi Lancer.
Proton can and has developed its own cars and it knows its own costs. Reportedly, its R&D (research and development) costs for a new car would run to RM700 million, which is about the industry standard. The costs would be prohibitive due to our fragmented market of about 500,000 units a year.
For instance, the New Straits Times-Maybank Car of the Year awards are surveying 65 plus models of vehicles launched this year by 22 brands (23, if Ferrari is included).
The C-segment market, where the Inspira will compete, is too small for Proton to justify spending RM700 million in R&D and build a car from scratch.

Small market segment

With this small market segment, Proton is doing precisely what Perodua has done in 1998 – license a platform from its shareholder, Daihatsu, and build on it. Yet, no one questions why the Viva and the Myvi cost more than their mechanical twins in Japan.
Platform sharing is sound business sense and the French and the Japanese do it, ala Renault and Nissan.
China and the United States do it via Shanghai Automotive Industry Corporation (SAIC) and General Motors (GM) China. And those are huge markets by our standards.
China’s car market alone should hit 13 million units this year. Japan’s TIV (total industry volume) for 2009 was 4.6 million units while Western Europe’s TIV is estimated at 12.7 million units this year.
This is a good time for the politicians to study the case for Proton and the Malaysian car industry to be freed of the tariff walls that work both ways – it keeps out imports and it imprisons the Malaysian car industry within the tariff barriers.
If we believe that the Malaysian car industry is competitive enough, and there’s good reason to believe that companies like Tan Chong, Perodua, Proton, Naza and Nasim, just to name a few, are good enough, then the bigger volume of a regional market will bring costs down.
The higher price of the Inspira versus the Lancer in the free port of Langkawi is due to the cost of local content. Local assembly and local content means higher cost in the case of the small Malaysian market.
In terms of economies of scale, it is imperative that high capital costs in the automotive industry have to be tied to large volumes of production, as locally assembled vehicles using locally made parts will cost more than fully imported finished products.
The cost of the locally assembled car will increase in proportion to the percentage of local components, as the local market's small volume works against the economies of scale. It should be noted that conservatively, at least 200,000 units of a particular model are required to be produced annually to attain economies of scale.
An examination of the national car project should lead us to ask why Proton did not do more platform sharing earlier and reap lucrative profits as Perodua did. Why did it do so much national duty and at such costs to taxpayers?

Electric hybrid

And the answer was given by the founder of Proton himself. Last week, former prime minister Tun Dr Mahathir Mohamad announced that Proton would soon launch a hybrid electric car in co-operation with its subsidiary, Lotus, and another distinguished English car builder of noted racing heritage, Fraser Nash.
This is a marvellous leapfrog as Proton did not invest much in the traditional internal combustion engine. The signals are quite clear that the way ahead in the automotive industry is electrification.
One step that makes it more credible for Malaysia as a maker of new energy cars is that the government has cut all taxes on hybrid cars below 2,000cc this year. The Honda Civic Hybrid at the tax free price of RM108,000 compares well with the recommended retail price of about US$24,000 (about RM74,000) in the United States.
The way ahead is for the government to guarantee the permanent tax free status for new energy cars.
Starting with Proton, the easy entry of new energy cars will gradually make Malaysia a hub of new alternative energy vehicles.
This will eventually integrate Proton into the chain of world class vendors specialising in extended range electric vehicles.
Hopefully, the lesson is learnt that protection of a domestic market is not a tenable option when the ambition is to tap into regional and world markets.

CRZ beats World Car of the Year

While the Honda Insight is making its way to our shores later this year, Honda has picked up the coveted Japan Car of the Year Award for its new CR-Z two door sports hybrid car.
Rather interestingly the Japanese built CR-Z beat nine other contestants, among which was the 2010 World Car of the Year winner Volkswagen Polo and its fellow contender the Mercedes-Benz E-class.
The other contestants isn’t what you might call cars of weak character such as the BMW F10 5-series, Peugeot RCZ coupe, Jaguar XJ limousine, Toyota Mark X, Nissan March, Mazda Premacy/5, and the Suzuki Swift.

Top 10 cars for September 2010

Top 10 national vehicles
1. Proton Saga 5,582
2. Perodua Myvi 5,413
3. Perodua Viva 4,703
4. Proton Persona 3,181
5. Perodua Alza 2,343
6. Proton Exora 2,095
7. Proton Satria Neo 301
8. Proton Waja 239
9. Proton Gen2 147
10. Proton Savvy 46

Top 10 non-national vehicles
1. Toyota Vios 2,573
2. Toyota Hilux 1,275
3. Honda City 1,112
4. Nissan Grand Livina 1,133
5. Toyota Camry 803
6. Toyota Avanza 802
7. Mitsubishi Triton 641
8. Honda Civic 513
9. Honda Accord 506
10. Honda CR-V 503

ALONSO SHOWS HE DESERVES NOTHING

Sebastian Vettel has been crowned the 2010 Formula 1 World Champion after driving a remarkable race at the Abu Dhabi GP. Today’s achievement adds to Red Bull’s 2010 constructor’s title which the team bagged last week in Brazil. The youngest ever World Champion from Germany was the first driver to cross the finish line after starting from pole. His top rival, Ferrari’s Fernando Alonso who could have become champion if he finished in fourth place only managed seventh and lost the title by four points.

The double World Champion spent a lot of time behind Renault’s Vitaly Petrov and failed to overtake the Russian rookie and that pretty much took his championship chances away. Red Bull’s Mark Webber who was also a strong contender for the championship suffered from the same fate and spent the entire duration of the 55-lap race behind Alonso.

Vettel’s first place finish was accompanied by McLaren’s Lewis Hamilton who was closing the gap between himself and Vettel during the final few laps. Third place went to Hamilton’s teammate Jenson Button, champion of 2009. This meant that the podium of the 2010 Abu Dhabi GP at the Yas Marina circuit was made up by the 2008 champion (Hamilton), 2009 champion and of course of the freshly-crowned 2010 champion.

Fourth was taken up Mercedes’ Nico Rosberg while Renault’s Robert Kubica and Vitaly Petrov finished in fifth and sixth places respectively. Alonso crossed the line in seventh ahead of Webber while ninth and tenth spots were taken up by Jaime Alguersuari from Toro Rosso and Felipe Massa from Ferrari.

The best of the new comers is officially Lotus Racing as Heikki Kovalainen finished the race in 17th place ahead Virgin’s Lucas di Grassi. The Hispania duo Bruno Senna and Christian Klien finished in 19th and 20th. Jarno Trulli of Lotus who suffered from various issues including a broken rear wing managed 21st. The were only three retirements of the day and they were Timo Glock of Virgin, Michael Schumacher of Mercedes and finally Vitantonio Liuzzi of Force India.

All drivers had clean starts when the lights went green but Alonso slipped from third to fourth by the first corner. Vettel managed to maintain his lead and stayed up in front, ahead of both the McLaren drivers. Just moments later, within the first lap, Schumacher spun while exiting a corner and Liuzzi crashed straight into him. That caused the one and only Safety Car period of the race.

After the restart the top positions were maintain with Vettel leading the McLaren drivers, Alonso, Webber and Massa. Webber was the first of the top runners to pit after suffering tire issues. His pit stop then prompted Massa and subsequently Alonso’s pit stops. Many say that if Alonso didn’t pit as early as he did, he could have collected his third title. Unfortunately for the Spaniard, he got stuck behind Petrov until the very end of the race as the Russian already performed his pit stop during the Safety Car period earlier. Webber was also in the same train, behind Alonso.

Alonso tried his best to overtake Petrov but the Russian did an excellent job in keeping the title contender at bay. Today was the final race of the season and we will meet again next for the 2011 Bahrain GP on March 13th. Meanwhile expect more news from the high-adrenaline world of Formula 1 as teams perform winter testing with new Pirelli rubber, launch their new contenders and announce their drivers. We will also find out if Lotus Racing will be able to keep the “Team Lotus” designation.

Perodua Viva Elite Exclusive Edition – RM42,000

Perodua Viva Elite Exclusive Edition – RM42,000

The Perodua Viva Elite Exclusive Edition is the latest edition to Perodua’s Viva model line-up. It adds a few new features to the existing Perodua Viva Elite model, which so happens to be the best selling Viva variant so far (41.4% of total Viva sales) since it was launched.

The new Exclusive Edition is available in a new colour – Classy Purple, in addition to two other colours – Midnight Blue and Ivory White.

Other changes include custom colored alloy wheels, new combination leather seats, and Exclusive Edition trim level badging.

The leather seats are made out of smooth leather for the main body, while the darker bits you see above are suede velour leather. The Viva Elite Exclusive Edition is priced at RM42,000 on the road.

Perodua aims to sell 600 units of the Viva Elite Exclusive Edition every month. The car was launched at Perodua’s new Puchong 3S center, which now combines the sales branch and the service center in a single location. The old service center has been moved to the site of the current sales center for better customer convenience and now includes 16 bays with 14 of them having hoists.

Proton Inspira Coupe – next generation Putra?

What do you think – does a two-door Lancer-based Proton Inspira look good? We’ll probably never see such a Proton Putra replacement in real life but heres a good one.

There used to be two-door versions of the Mitsubishi Lancer, but in the past two generations such models have gone missing probably as the world simply stopped buying non-premium 2-door coupes outside of North America, and that’s a market that Mitsubishi isn’t really doing that great in in the first place.

In fact in the C-segment there aren’t that many two-door coupes remaining, I can only think of the Honda Civic Coupe, and the Focus Coupe and the Kia Forte Koup at the moment, and the first two are only sold in North America. It sure would be nice to have a 4B12-powered 2.4 liter Proton Putra or Inspira Coupe! :)

Of Automotives and The Recently Announced Budget

Hybrid cars are becoming very attractive propositions thanks to the Government’s decision to fully waive excise and import duty, as announced in the 2011 Budget. UMW Toyota has already slashed the Toyota Prius’ price tag to RM139,900 from the previous RM175,000, and it’s Honda’s turn to reveal the new price of its Civic Hybrid. The green Civic is now priced at RM108,980 OTR with insurance, which is RM21,000 cheaper than before.

This means that the imported from Japan Civic Hybrid will be the most affordable Civic variant in Malaysia, undercutting the RM114,980 1.8S model, which is locally assembled by the way. The new price for East Malaysia is RM1,000 more than on the Peninsular, while Langkawi and Labuan buyers can have the car at RM100,980. It’s still cheaper in those duty free islands as they are exempted from a 10% sales tax.

“As the pioneer in introducing the hybrid technology to the Malaysian market, we are pleased with the government’s decision to allow full exemption of import duty and excise duty as announced in the recent Budget 2011. The move will make hybrid vehicles more accessible for environmentally conscious Malaysians. These exemptions are certainly timely as Honda is looking into expanding its hybrid vehicle line-up in Malaysia,” said Honda Malaysia President and COO, Rohime Shafie.

There you have it! Should be the Honda Insight, or perhaps even the CR-Z at a later date!
213 Comments



New Toyota Prius lowered price – RM139,900
October 28, 2010 at 11:07 am By Paul Tan Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011, Toyota


The Toyota Prius will be priced at RM139,900 in the Peninsular Malaysia and RM141,500 in Sabah and Sarawak effective today. This is a drop of about RM35,000 in Peninsular Malaysia from the previous price of RM175,000.

That’s how much that remaining half-price excise duty means – RM35,000. Our prices are still higher than Langkawi’s prices as we still have 10% sales tax despite import duties and excise duties being 0% now. Just to recap – when the Budget 2011 was announced, the Malaysian government lowered the duties for hybrid vehicles below 2,000cc of displacement to 0% for both excise and import duty. Previously, the government gave 100% exemption of import duty but only 50% exemption for excise duty.

It looks like our estimation of the new Toyota Prius pricing after the complete removal of excise duties by the government was pretty much spot on after all. We estimated a price of around RM140,149.30 with a tax savings of about RM34,850.70. We calculated that based on the Langkawi price of RM127,408.45 and adding 10% sales tax. So we can assume that UMW Toyota is transferring 100% of the benefits of the tax break to the consumers.



Next up would be the Honda Civic Hybrid – an announcement from Honda Malaysia should be coming soon before the end of the year. Our pricing estimation for the Honda Civic Hybrid was RM111,078, a drop of about RM18,902 from the current price of RM129,980.

At the new price of RM139,900, the Toyota Prius really starts becoming very tempting. The new price is also below RM150k so it becomes more favorable in terms of claiming capital allowances – that should start driving up sales for the Prius as a company car as well.

We tried the Prius (watch our real life road test review on Driven or our Japanese closed track test drive on this blog) and found that it could give significantly lower fuel consumption without the driver consciously trying hard to save fuel – that’s what a good hybrid should be doing, not forcing you to mind your throttle to the point that it becomes distracting and unenjoyable.
152 Comments
Berjaya Corp granted local assembly manufacturing licence
October 22, 2010 at 1:55 pm By Anthony Lim Filed Under BYD, Cars, Local News, Malaysia Budget 2011


Well, another player has joined the list of local assemblers. Berjaya Corporation has been granted a manufacturing licence to build vehicles in the country by the Ministry of International Trade and Industry, and with that is set to assemble commercial vehicles, hybrid cars, electric cars and luxury passenger vehicles at a 100-acre plant in Bukit Tagar, Selangor.

Tan Sri Vincent Tan, Berjaya Corp’s chairman and CEO, said in a statement that the license would allow Berjaya more flexibility and control in terms of quality and pricing of its vehicles. The group currently holds the distribution and marketing rights to a number of brands locally, including Mazda, Chana Era, Skoda and Jinbei.

“Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green technology through the development of hybrid and electric vehicles which are more environmentally friendly. In line with this, we hope to expand our market share and develop a more global presence,” he said.



The direction towards hybrid (and EV) assembly looks timely for Berjaya, given the recent full excise duty exemptions on hybrid cars below 2.0 litres until Dec 31 next year. The exemption under the budget, along with the manufacturing licence approved by MITI, effectively means that Berjaya Corp will be able to circumvent the revised National Automotive Policy’s clause of only issuing manufacturing licences for vehicles above a 1.8 litre engine displacement and RM150,000 pricing, which had earlier played havoc on its plans for local assembly.

Earlier in the year, Berjaya Corp had signed a MOU with Chinese automaker BYD Auto to locally assemble the latter’s 1.0 litre F0 four-door hatch, but the NAP directive kept that from developing. Now, with the manufacturing licence approval, the project should in all probability get underway, and the assumption is that BYD models such as e6 and F3DM should figure in plans at some point in the future.
63 Comments
Toyota to assemble Prius in Thailand for Asian markets
October 19, 2010 at 1:06 pm By Anthony Lim Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, International News, Malaysia Budget 2011, Toyota


The recent hybrid-related announcement in Budget 2011 may have been cheery news for potential hybrid adopters, but here’s where it gets even better, especially for those looking closely at the Toyota Prius.

Toyota Motor Thailand is to begin production of the third-generation Prius hybrid, with the vehicle set for its soft launch on October 21 and its Thai market debut next month. The batteries and engine will be shipped in from Japan for Thai production.

Following the Camry hybrid, the ZVW30 will be TMT’s second locally-assembled hybrid. Thailand is the third country to build the Prius after Japan and China, and the vehicle will be exported to other Asian markets to meet rising demands – the assumption is of course that when Thai exports begin, Malaysia will be taking the Prius from here instead of from Japan.

Potentially, dependent on the Thai-made vehicle’s pricing, this would mean an even cheaper Prius in Malaysia. UMW Toyota is currently in the midst of carrying out a revision on the price of the Prius following the full exemption of the import/excise duty for hybrids. How much the Thai-made vehicle will figure towards the final revised price remains to be seen – we’ll just have to wait and see what the final numbers are.
174 Comments
Budget 2011: BMW hopes clean diesel will not be forgotten
October 15, 2010 at 8:02 pm By Anthony Lim Filed Under BMW, Cars, Local News, Malaysia Budget 2011
While the hot news was on hybrids and the only significant topic on the diesel front in Budget 2011 was on the implementation of the B5 programme (Blending of Biofuels with Petroleum Diesel) on a mandatory basis in some states by June of next year, there remains the hope that the Government will continue to look at improving the quality of petroleum diesel as another step in lowering carbon emissions.

BMW Group Malaysia is of the belief that such an approach is not only a viable alternative but a very sound one at that, with the following commentary on Budget 2011, which you will find after the jump. I think the key is here the comparison between the 320i and the 320d. Makes lots of sense really, when compared to what the United Nations defines the hybrid standard as.
[Read more...]
51 Comments
Honda Malaysia to review Honda Civic Hybrid pricetag
October 15, 2010 at 7:19 pm By Paul Tan Filed Under Cars, Honda, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011


Honda Malaysia Sdn Bhd has just issued a statement – they are quite pleased with the government’s decision to extend import duty and excise duty exemption for hybrid vehicles until 31st December 2011 with excise duty to be given full exemption. An internal review will be done and a new revised price structure for the Honda Civic Hybrid will be announced when the internal review has been completed.

Interestingly, Honda Malaysia also said that it is also looking to extending its hybrid vehicle line-up. Other than the Civic Hybrid, Honda also has the Honda Insight, Honda CR-Z, and the Honda Jazz Hybrid in its stables. Which would you rather see launched in Malaysia?
[Read more...]
91 Comments
Budget 2011: other motoring and transport related news
October 15, 2010 at 6:58 pm By Anthony Lim Filed Under Cars, Local News, Malaysia Budget 2011


Besides the news of the removal of the 50% excise duty of hybrid vehicles in Paul’s earlier story, there were some other items related to motoring and transport in Budget 2011.

Effective January 1 next year, the service tax on all taxable services will go up from 5% to 6%, which of course means that it’ll add to the cost of servicing and repairing your vehicle, among everything else that you can be expected to pay a service tax for.

Better news for frequent users of the four highways run by PLUS Expressways Berhad – as a means of alleviating your burden, the toll won’t be raised for the next five years.

As part of its plan to reduce the intensity of carbon emissions, the Government will also begin the implementation of its B5 programme – the blending of biofuel in diesel – on a mandatory basis in Putrajaya, Kuala Lumpur, Selangor, Negeri Sembilian and Melaka starting from June 2011.

Elsewhere, some good news for the physically disabled who are able to drive – the current exemption of excise duty by 50% on the purchase of a national vehicle is now 100%, with all existing conditions for such a purchase remaining unchanged. The revised exemption, effective from October 18, is also extended to those with hearing and speaking disabilities.

In terms of public transport, work on the Mass Rapid Transit rail system in the Klang Valley is slated to begin in 2011. The project, which is estimated to cost RM40 billion, is aimed at providing an efficient transport system that will reduce travelling time and offer better connectivity in the Klang Valley.

The project will be integrated to other modes of transportation, including buses and taxis (it’ll be interesting to see how this one works – a definite overhaul is needed, for sure), and is expected to be completed by 2020. Upon its completion, the Government expects that the utilisation rate of public transport to increase by at least 40%.

Meanwhile, rural roads get that much needed improvement – Sabah and Sarawak is to get an allocation of RM2.1 billion for the building and upgrading of rural roads, while RM696 million will be set aside for those in the Peninsular.
97 Comments
Hybrid car tax exemption to be extended to end of 2011
October 15, 2010 at 4:41 pm By Paul Tan Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011
In today’s Budget 2011 announcement, the PM has announced that import duty and excise duty is now FULLY exempted for hybrid and electric cars and motorcycles until the end of the year 2011.

■The duty exemption has been extended until the 31st of December 2011, it was supposed to expire by the end of this year.
■The duties for hybrid cars are even lower now. Previously the government offered 100% import duty exemption and 50% excise duty exemption, now it’s 100% exemption for both import duty and excise duty! This should mean the price of the Toyota Prius and the Honda Civic Hybrid should be even lower now.
■Exemptions have now been extended to electric cars, hybrid motorcycles as well as electric motorcycles.
■The rest of the details are status quo, for example the exemptions still only apply to internal combustion engines with capacities of lower than 2.0 liters, so there’s still no way for the Toyota Camry Hybrid to be brought in with these tax benefits.
Let’s look at how much that additional reduction in excise duty means for hybrid cars. This is just a possible guesstimate, feel free to correct us in the comments. We are calculating the new Peninsular Malaysia price based on the Langkawi pricing (which gives us an indication of how much a truly tax free price would be, including whatever profit margin the local distributor wants to take) with an additional 10% added for sales tax. All prices are for private registration.

Honda Civic Hybrid Toyota Prius
Current Peninsular Price RM129,980.00 RM175,000.00
Current Langkawi Price RM100,980.00 RM127,408.45
Possible New Price RM111,078.00 RM140,149.30
Possible Savings of Excise Duty RM18,902.00 RM34,850.70

The budget text appendix also says that the new duty range is for applications beginning from January 2011 to the end of 2011 so we’re probably only going to see any drop in prices next year.
164 Comments
Budget 2011: BMW Malaysia dreams of cleaner fuel, government support for clean diesel technology
October 13, 2010 at 5:47 pm By Danny Tan Filed Under BMW, Cars, Local News, Malaysia Budget 2011
The 2011 Budget will be tabled by Prime Minister Datuk Seri Najib Tun Razak at the Dewan Rakyat this Friday (15 Oct). Many of us working in the private sector are hoping to get some share of the goodies, and some might be relieved to hear that the implementation of the Goods and Services Tax (GST) has been postponed by the Finance Ministry, deferred to “enable the Government to engage inclusively all segments of the people on the imposition of the GST”.

As motorists, we hope for the best, which is usually translated to no increase in costs. The automotive industry has its own wishlist too – for instance, Toyota would not have been able to launch the Prius here with a competitive price if not for the tax breaks for hybrid cars announced in Budget 2009.

BMW Group Malaysia, which has been a leader in introducing the latest in diesel technology in Malaysia despite the unfriendly conditions, is hoping that the Government sees diesel tech as a main component in its green policies. BMW argues that diesel tech will be a good friend to our wallets and the environment, something that this website fully agrees with. And like the rest of us, they’re also hoping that fuel quality is improved, fast.

Hybrid cars are becoming very attractive propositions thanks to the Government’s decision to fully waive excise and import duty, as announced in the 2011 Budget. UMW Toyota has already slashed the Toyota Prius’ price tag to RM139,900 from the previous RM175,000, and it’s Honda’s turn to reveal the new price of its Civic Hybrid. The green Civic is now priced at RM108,980 OTR with insurance, which is RM21,000 cheaper than before.

This means that the imported from Japan Civic Hybrid will be the most affordable Civic variant in Malaysia, undercutting the RM114,980 1.8S model, which is locally assembled by the way. The new price for East Malaysia is RM1,000 more than on the Peninsular, while Langkawi and Labuan buyers can have the car at RM100,980. It’s still cheaper in those duty free islands as they are exempted from a 10% sales tax.

“As the pioneer in introducing the hybrid technology to the Malaysian market, we are pleased with the government’s decision to allow full exemption of import duty and excise duty as announced in the recent Budget 2011. The move will make hybrid vehicles more accessible for environmentally conscious Malaysians. These exemptions are certainly timely as Honda is looking into expanding its hybrid vehicle line-up in Malaysia,” said Honda Malaysia President and COO, Rohime Shafie.

There you have it! Should be the Honda Insight, or perhaps even the CR-Z at a later date!
213 Comments



New Toyota Prius lowered price – RM139,900
October 28, 2010 at 11:07 am By Paul Tan Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011, Toyota


The Toyota Prius will be priced at RM139,900 in the Peninsular Malaysia and RM141,500 in Sabah and Sarawak effective today. This is a drop of about RM35,000 in Peninsular Malaysia from the previous price of RM175,000.

That’s how much that remaining half-price excise duty means – RM35,000. Our prices are still higher than Langkawi’s prices as we still have 10% sales tax despite import duties and excise duties being 0% now. Just to recap – when the Budget 2011 was announced, the Malaysian government lowered the duties for hybrid vehicles below 2,000cc of displacement to 0% for both excise and import duty. Previously, the government gave 100% exemption of import duty but only 50% exemption for excise duty.

It looks like our estimation of the new Toyota Prius pricing after the complete removal of excise duties by the government was pretty much spot on after all. We estimated a price of around RM140,149.30 with a tax savings of about RM34,850.70. We calculated that based on the Langkawi price of RM127,408.45 and adding 10% sales tax. So we can assume that UMW Toyota is transferring 100% of the benefits of the tax break to the consumers.



Next up would be the Honda Civic Hybrid – an announcement from Honda Malaysia should be coming soon before the end of the year. Our pricing estimation for the Honda Civic Hybrid was RM111,078, a drop of about RM18,902 from the current price of RM129,980.

At the new price of RM139,900, the Toyota Prius really starts becoming very tempting. The new price is also below RM150k so it becomes more favorable in terms of claiming capital allowances – that should start driving up sales for the Prius as a company car as well.

We tried the Prius (watch our real life road test review on Driven or our Japanese closed track test drive on this blog) and found that it could give significantly lower fuel consumption without the driver consciously trying hard to save fuel – that’s what a good hybrid should be doing, not forcing you to mind your throttle to the point that it becomes distracting and unenjoyable.
152 Comments
Berjaya Corp granted local assembly manufacturing licence
October 22, 2010 at 1:55 pm By Anthony Lim Filed Under BYD, Cars, Local News, Malaysia Budget 2011


Well, another player has joined the list of local assemblers. Berjaya Corporation has been granted a manufacturing licence to build vehicles in the country by the Ministry of International Trade and Industry, and with that is set to assemble commercial vehicles, hybrid cars, electric cars and luxury passenger vehicles at a 100-acre plant in Bukit Tagar, Selangor.

Tan Sri Vincent Tan, Berjaya Corp’s chairman and CEO, said in a statement that the license would allow Berjaya more flexibility and control in terms of quality and pricing of its vehicles. The group currently holds the distribution and marketing rights to a number of brands locally, including Mazda, Chana Era, Skoda and Jinbei.

“Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green technology through the development of hybrid and electric vehicles which are more environmentally friendly. In line with this, we hope to expand our market share and develop a more global presence,” he said.



The direction towards hybrid (and EV) assembly looks timely for Berjaya, given the recent full excise duty exemptions on hybrid cars below 2.0 litres until Dec 31 next year. The exemption under the budget, along with the manufacturing licence approved by MITI, effectively means that Berjaya Corp will be able to circumvent the revised National Automotive Policy’s clause of only issuing manufacturing licences for vehicles above a 1.8 litre engine displacement and RM150,000 pricing, which had earlier played havoc on its plans for local assembly.

Earlier in the year, Berjaya Corp had signed a MOU with Chinese automaker BYD Auto to locally assemble the latter’s 1.0 litre F0 four-door hatch, but the NAP directive kept that from developing. Now, with the manufacturing licence approval, the project should in all probability get underway, and the assumption is that BYD models such as e6 and F3DM should figure in plans at some point in the future.
63 Comments
Toyota to assemble Prius in Thailand for Asian markets
October 19, 2010 at 1:06 pm By Anthony Lim Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, International News, Malaysia Budget 2011, Toyota


The recent hybrid-related announcement in Budget 2011 may have been cheery news for potential hybrid adopters, but here’s where it gets even better, especially for those looking closely at the Toyota Prius.

Toyota Motor Thailand is to begin production of the third-generation Prius hybrid, with the vehicle set for its soft launch on October 21 and its Thai market debut next month. The batteries and engine will be shipped in from Japan for Thai production.

Following the Camry hybrid, the ZVW30 will be TMT’s second locally-assembled hybrid. Thailand is the third country to build the Prius after Japan and China, and the vehicle will be exported to other Asian markets to meet rising demands – the assumption is of course that when Thai exports begin, Malaysia will be taking the Prius from here instead of from Japan.

Potentially, dependent on the Thai-made vehicle’s pricing, this would mean an even cheaper Prius in Malaysia. UMW Toyota is currently in the midst of carrying out a revision on the price of the Prius following the full exemption of the import/excise duty for hybrids. How much the Thai-made vehicle will figure towards the final revised price remains to be seen – we’ll just have to wait and see what the final numbers are.
174 Comments
Budget 2011: BMW hopes clean diesel will not be forgotten
October 15, 2010 at 8:02 pm By Anthony Lim Filed Under BMW, Cars, Local News, Malaysia Budget 2011
While the hot news was on hybrids and the only significant topic on the diesel front in Budget 2011 was on the implementation of the B5 programme (Blending of Biofuels with Petroleum Diesel) on a mandatory basis in some states by June of next year, there remains the hope that the Government will continue to look at improving the quality of petroleum diesel as another step in lowering carbon emissions.

BMW Group Malaysia is of the belief that such an approach is not only a viable alternative but a very sound one at that, with the following commentary on Budget 2011, which you will find after the jump. I think the key is here the comparison between the 320i and the 320d. Makes lots of sense really, when compared to what the United Nations defines the hybrid standard as.
[Read more...]
51 Comments
Honda Malaysia to review Honda Civic Hybrid pricetag
October 15, 2010 at 7:19 pm By Paul Tan Filed Under Cars, Honda, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011


Honda Malaysia Sdn Bhd has just issued a statement – they are quite pleased with the government’s decision to extend import duty and excise duty exemption for hybrid vehicles until 31st December 2011 with excise duty to be given full exemption. An internal review will be done and a new revised price structure for the Honda Civic Hybrid will be announced when the internal review has been completed.

Interestingly, Honda Malaysia also said that it is also looking to extending its hybrid vehicle line-up. Other than the Civic Hybrid, Honda also has the Honda Insight, Honda CR-Z, and the Honda Jazz Hybrid in its stables. Which would you rather see launched in Malaysia?
[Read more...]
91 Comments
Budget 2011: other motoring and transport related news
October 15, 2010 at 6:58 pm By Anthony Lim Filed Under Cars, Local News, Malaysia Budget 2011


Besides the news of the removal of the 50% excise duty of hybrid vehicles in Paul’s earlier story, there were some other items related to motoring and transport in Budget 2011.

Effective January 1 next year, the service tax on all taxable services will go up from 5% to 6%, which of course means that it’ll add to the cost of servicing and repairing your vehicle, among everything else that you can be expected to pay a service tax for.

Better news for frequent users of the four highways run by PLUS Expressways Berhad – as a means of alleviating your burden, the toll won’t be raised for the next five years.

As part of its plan to reduce the intensity of carbon emissions, the Government will also begin the implementation of its B5 programme – the blending of biofuel in diesel – on a mandatory basis in Putrajaya, Kuala Lumpur, Selangor, Negeri Sembilian and Melaka starting from June 2011.

Elsewhere, some good news for the physically disabled who are able to drive – the current exemption of excise duty by 50% on the purchase of a national vehicle is now 100%, with all existing conditions for such a purchase remaining unchanged. The revised exemption, effective from October 18, is also extended to those with hearing and speaking disabilities.

In terms of public transport, work on the Mass Rapid Transit rail system in the Klang Valley is slated to begin in 2011. The project, which is estimated to cost RM40 billion, is aimed at providing an efficient transport system that will reduce travelling time and offer better connectivity in the Klang Valley.

The project will be integrated to other modes of transportation, including buses and taxis (it’ll be interesting to see how this one works – a definite overhaul is needed, for sure), and is expected to be completed by 2020. Upon its completion, the Government expects that the utilisation rate of public transport to increase by at least 40%.

Meanwhile, rural roads get that much needed improvement – Sabah and Sarawak is to get an allocation of RM2.1 billion for the building and upgrading of rural roads, while RM696 million will be set aside for those in the Peninsular.
97 Comments
Hybrid car tax exemption to be extended to end of 2011
October 15, 2010 at 4:41 pm By Paul Tan Filed Under Cars, Hybrids, Electric vehicles, fuel cells, alternative fuel, Local News, Malaysia Budget 2011
In today’s Budget 2011 announcement, the PM has announced that import duty and excise duty is now FULLY exempted for hybrid and electric cars and motorcycles until the end of the year 2011.

■The duty exemption has been extended until the 31st of December 2011, it was supposed to expire by the end of this year.
■The duties for hybrid cars are even lower now. Previously the government offered 100% import duty exemption and 50% excise duty exemption, now it’s 100% exemption for both import duty and excise duty! This should mean the price of the Toyota Prius and the Honda Civic Hybrid should be even lower now.
■Exemptions have now been extended to electric cars, hybrid motorcycles as well as electric motorcycles.
■The rest of the details are status quo, for example the exemptions still only apply to internal combustion engines with capacities of lower than 2.0 liters, so there’s still no way for the Toyota Camry Hybrid to be brought in with these tax benefits.
Let’s look at how much that additional reduction in excise duty means for hybrid cars. This is just a possible guesstimate, feel free to correct us in the comments. We are calculating the new Peninsular Malaysia price based on the Langkawi pricing (which gives us an indication of how much a truly tax free price would be, including whatever profit margin the local distributor wants to take) with an additional 10% added for sales tax. All prices are for private registration.

Honda Civic Hybrid Toyota Prius
Current Peninsular Price RM129,980.00 RM175,000.00
Current Langkawi Price RM100,980.00 RM127,408.45
Possible New Price RM111,078.00 RM140,149.30
Possible Savings of Excise Duty RM18,902.00 RM34,850.70

The budget text appendix also says that the new duty range is for applications beginning from January 2011 to the end of 2011 so we’re probably only going to see any drop in prices next year.
164 Comments
Budget 2011: BMW Malaysia dreams of cleaner fuel, government support for clean diesel technology
October 13, 2010 at 5:47 pm By Danny Tan Filed Under BMW, Cars, Local News, Malaysia Budget 2011
The 2011 Budget will be tabled by Prime Minister Datuk Seri Najib Tun Razak at the Dewan Rakyat this Friday (15 Oct). Many of us working in the private sector are hoping to get some share of the goodies, and some might be relieved to hear that the implementation of the Goods and Services Tax (GST) has been postponed by the Finance Ministry, deferred to “enable the Government to engage inclusively all segments of the people on the imposition of the GST”.

As motorists, we hope for the best, which is usually translated to no increase in costs. The automotive industry has its own wishlist too – for instance, Toyota would not have been able to launch the Prius here with a competitive price if not for the tax breaks for hybrid cars announced in Budget 2009.

BMW Group Malaysia, which has been a leader in introducing the latest in diesel technology in Malaysia despite the unfriendly conditions, is hoping that the Government sees diesel tech as a main component in its green policies. BMW argues that diesel tech will be a good friend to our wallets and the environment, something that this website fully agrees with. And like the rest of us, they’re also hoping that fuel quality is improved, fast.