HARMONIOUS GROWTH OF AUTOMOTIVE INDUSTRY IN

MALAYSIA AND ASEANYBhg Datuk Takashi Hibi

•Advisor To Executive Committee,UMW Toyota Motor Sdn Bhd

•Counselor, Japanese Chamber of Trade & Industry, Malaysia

ASEAN Business and Investment Summit 2015November 21, 2015Kuala Lumpur

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• Toyota is committed towards the Global Environment by 1-1 New vehicle zero carbon dioxide emissions

1-2 Life cycle zero carbon dioxide emissions

1-3 Plant zero carbon dioxide emissions

1-4 Minimising and optimising water usage

1-5 Establishing a recycling based society

1-6 Establishing a future society in harmony with nature

from Toyota Motor Corporation Sustainability Report, 2015

1. Toyota Environmental Challenge Towards 2050

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1: New Vehicles Zero CO2 Emissions Challenge

Reducing global average new- vehicle CO2 emissions by 90 percent by 2050 (compared to Toyota’s 2010 global average)

3: Plant Zero CO2 Emissions Challenge

Zero CO2 emissions at all plants by 2050

[from Toyota Motor Corporation Portal site]

1. Toyota Environmental Challenge Towards 2050

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2.1 Deliver best product to meet ASEAN customer’s demands

2. Toyota Operation in ASEAN

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TMTSTM

TMMIN

ASSB

TMPTAP

TMV

2.2 Contribute to industrial development in each country (Toyota production network in ASEAN)

Vietnam35k

Philippines42k

Indonesia209k

Malaysia

80k

Thailand725k

< Transmission>

<Engine>

<Engine>

Vehicle Mfg Plant

Main Components Mfg Plant

Vehicle Production in 2014

x1,000units

2. Toyota Operation in ASEAN

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TMTSTM

TMMIN

ASSB

TMPTAP

TMV

2.2 Contribute to industrial development in each country (Toyota Group production network in ASEAN)

Vietnam35k

Philippines42k

Indonesia209k

Malaysia

80k

Thailand725k

< Transmission>

<Engine>

<Engine>

( Perodua )

Vehicle Mfg Plant

Main Components Mfg Plant

Vehicle Production in 2014

x1,000units

Daihatsu

Hino

2. Toyota Operation in ASEAN

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2.3 Reserve natural resources (social contribution activity – “Eco Youth”)

2. Toyota Operation in ASEAN

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2.3 Reserve natural resources (social contribution activity – “Mangrove Planting”)

2. Toyota Operation in ASEAN

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3.1 Toyota HV production / sales in 2014

3. HV Production in Malaysia

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2009 2010 2011 2012 2013 2014 2015 2016 2017

Gov’t incentive

EV / HV Total Sales (‘000)

0.3 0.3 8.4 15.4 15.0 5.1 5.0(est.)

CBU/CKDExcise Duty : 50%Import Duty : 0%

CBU/CKDExcise Duty : 0%Import Duty : 0%

HV CKD OnlyExcise Duty: 0%Import Duty: 0%

EV CKD onlyExcise Duty: 0%Import Duty: 0%

3.2 EEV (Energy Efficient Vehicle) incentive by Malaysian Government

3. HV Production in Malaysia

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3.3 HV Camry production started in April 2015

3. HV Production in Malaysia

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Monthly Average Sales (units/month)

3.4 Camry price and sales

xRM 1,000Units

3. HV Production in Malaysia

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Toyota 1.8

Prius 1.8 HVAltis 1.8 Gas

E/G

CO2 89 g/km 167 g/km

Fuel consumption 3.9 L/100km 6.6 L/100km

Camry 2.5

2.5 HV 2.5V Gas E/G

CO2 119 g/km 183 g/km

Fuel consumption 5.1 L/100km 7.8 L/100km

Source: Toyota Motor Europe https://www.toyota-europe.com/new-cars/camry/index.json#/publish/compare_engines/selection=2AR-FE-25P--180

Source: Based on Singapore Corolla Brochure for CO2 (2012 model) and Australia Corolla Brochure; and Australia Prius Brochure

3.5 HV and conventional gas engine performance

3. HV Production in Malaysia

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2009 2010 2011 2012 2013 2014 2015 2016 2017

Gov’t incentive

EV / HV Total Sales (‘000)

0.3 0.3 8.4 15.4 15.0 5.1 5.0(est.)

4.1 Extend EV / HV incentive

CBU/CKDExcise Duty : 50%Import Duty : 0%

CBU/CKDExcise Duty : 0%Import Duty : 0%

HV CKD OnlyExcise Duty: 0%Import Duty: 0%

EV CKD onlyExcise Duty: 0%Import Duty: 0%

4. Challenges for Malaysian Automotive Industry

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Country Current Future

Fuel availability Exhaust Emission

Implementation Fuel availability Exhaust Emission Implementation

Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel

Malaysia Euro 2 Euro2 Euro2 Euro1 Euro 4 (Oct 2018)

Euro 5 (Sep 2020)

Euro 4 (Oct 2018)

Euro 4 (Sep 2020)

Thailand Euro 4 Euro 4 Euro 4 Euro 4 Euro 5 Under Planning

Euro 5 Under Planning

Euro 5/Euro 6Under Planning

Euro 5/Euro 6Under Planning

Indonesia Euro2 Euro2 Euro2 Euro2 Euro 4 (Under Planning)

Euro 4 (Under Planning) Euro 4 Euro 4

Philippines Euro2 Euro2 Euro2 Euro2 Euro 4 (January 2016)

Euro 4 (January 2016)

Euro 4 (January 2016)

Euro 4 (January 2016)

Vietnam Euro2 Euro2 Euro2 Euro2 Euro 4 (January 2016)

Euro 4 (January 2016)

Euro 4 (January 2017)

Euro 4(January 2017)

4.2 Level up emission control

4. Challenges for Malaysian Automotive Industry

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On the possibility of introducing the “Cash for Clunkers” rebate system, Aminar said that Perodua is still negotiating with the government on the matter.

“We were approached by the government last year and the discussion is ongoing. There are issues that need to be addressed first such as who will bear the cost, the age limit of vehicles and the methods of scrapping,” he said.

4.3 Implement scrap incentive

4. Challenges for Malaysian Automotive Industry

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4.4 Control black smoke by big bus and truck

4. Challenges for Malaysian Automotive Industry

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• These challenges in Malaysia are common with the other ASEAN countries

• ASEAN countries are to commonise regulations in emission, safety etc, and hopefully for eco-car incentives

• Japanese automakers and parts manufacturers will easily introduce environment-friendly technology and products

5. Challenges faced by ASEAN

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Thank you very much for your kind attention

!

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