Introduction Of Hybrid Cars Marketing Essay

Hybrid car is where both technologies which include electric motor powered by batteries and conventional gasoline engine are available in a car to obtain maximum power so that it can achieve fuel economy with low emission. One of the main sources from these two acts as a backup in different situations such as it charges battery when hybrid car travel when down the hills. Most of the hybrid cars provide a function to charge their battery by regenerated energy when the driver uses that brake system. Hybrid car will automatically switches between gasoline and batteries in certain situations when necessary.

Besides that, when hybrid car is travel up to a hill, its’ petrol engine and electric motor running simultaneously and runs at maximum input at the same time hence there was no battery charge in this situation furthermore, when hybrid car travel at normal rate, there will be optimize the fuel efficiency with the uses of both electric motor and gasoline engine. The gas engine works together with motor to apply resistance to the brake system in order to slow down or to park the car, increase the speed of hybrid car, as well as to reduce the drag on the tires.

Hybrid car is an environment friendly car because it can reduce the amount of fuel emissions released to the air and it save fuel since hybrid car can use batteries to operate hybrid car without fuel consumption. In the other hand, hybrid car produce less pollution and greenhouse gases. Last but not least, a hybrid car can increase mileage because hybrid car combine engine that use gas with electric motor to reduce gas consumption to balance each other.

2.0 Pro’s

2.1 Advancement of technology

Hybrid cars such as Toyota and Honda that introduced from Japan had increased their sales in local market. For the first few years, these two companies newly launched their hybrid vehicles struggling when they came into Malaysian hybrid market. A very low level of interest towards hybrid by consumers. In October 2011, demand for hybrid cars were strong especially the Honda Insight according to an analyst from OSK Research, The Star Online on 8 October 2011.

Since demand for hybrid cars had gone up, Honda would expand their plant here in Malacca. Initially, the company investing RM350mil and will expand to RM1bil for duration of three years. Besides, the plant expected to produce total of 100,000 units of hybrid cars annually, said Asian Honda Motor president and CEO Hiroshi Kobayashi. (R.S.N Murali, The Star Online).

Therefore, Malaysian car manufacturer is exploring Japanese technologies in order to produce our own hybrid vehicles and at the same time improve our product quality told by Dewan Negara on 26 April 2012.

Thus, Government ready to invest in local hybrid car technology. In other words, Government will be supporting Proton Holding Sdn Bhd by allocate RM120million in research and development for a brand new hybrid car locally made said International Trade and Industry Minister Datuk Seri Mustapa Mohamed in The Choice Featured Articles on 28 September 2012.

Besides, Proton had a deal of RM500million investment with United Kingdom based Frazer-Nash Research to develop electric and also hybrid cars.

Forcing the local carmakers to be more competitive

Import hybrid car not only brings negative effect for the local car manufacturer, but advantages as well.

Introduce of hybrid car into Malaysia bring motivation and encouraging to the local car manufacturer. It will force local car makers to be more competitive,” the Petaling Jaya Utara MP told FMT.

Even the budget 2012 seems to be affects the local car manufacturers business, such as Proton. Because of this, Proton will be forced to buck up. There is few things that local car manufacturer is still unable to produce hybrid car is because lack of technology, scale and missing the critical links to support the industry’s processes. An example is our inability to manufacture a tooling mould for certain key components. At the moment, Malaysia still relies on imported moulds from Taiwan and Thailand, (reviewed by National Automotive Policy, NAP.)

However Proton does not give up and continue research and development and receive subsidies support from government Malaysia. Proton will be selling electric vehicles by 2014, (International Trade and Industry Minister Datuk Seri Mustapa Mohamed told Parliament at 28 September 2012.)

2.2 Con’s

Sales of local car manufacturer reduce

Import hybrid electric car become a huge threat for local car manufacturer Proton and Perodua and the level of threat is increasing in year 2012 to 2013 due to the Budget 2012.

Hundred percent exemption of import duty and excise duty for new hybrid and electric cars will be extended for another 2 years, valid from 1 January 2012 to 31 December 2013. This is part of the efforts from the Malaysian Government to promote “Green Products” in tackling climate change and increase the awareness of protecting our environment among the Malaysians.(Budget 2012 by Prime Minister Dato’ Seri Najib.)

Making import cars cheaper through tax cuts would likely affect the sales of national carmaker Proton. It’s because the sales of import cars will increase drastically thus it drives Proton’s business down due to the reducing demand for local car.

No one will want to buy Proton cars because the price of imported luxury cars will be about the same… and Proton employees will be upset at getting retrenched,” a news portal quoted him as saying.

The national car maker had seen its fortunes rapidly dwindling despite the protectionist policies which have had helped Proton keep its car prices comparatively low. But it is barely surviving in the increasingly competitive automotive industry.

Competition

In Malaysia, many variety of Japanese and Europe hybrid vehicles for consumer to purchase. Since Japanese hybrid cars such as Honda Insight and Toyota Prius made their product’s name popular in local market, it will be challenging for Malaysian car manufacturers, Proton and Perodua. Strong competition occurs when we produce our new made hybrid car. Furthermore, Toyota Motor Corp. has a new strategy which able to improve their electric as well as hybrid vehicles. They predicted its sales of their hybrid models to achieve world-wide top 1 million this year until 2015. (The Wall Street Journal by Chester Dawson on 24 September 2012)

Proton Holdings Bhd is looking to offer the first hybrid car in local market at a competitive price RM100, 000 or below said Advisor Tun Dr. Mahathir Mohamad in Bernama, 2 November 2011. Proton company decided to lower their new product’s price was because of price of hybrid cars imported into Malaysian market will be cheaper after hundred percents import duty exemption. (Budget 2012 by Prime Minister, Dato’ Seri Najib).

By doing so, Proton is able to compete in hybrid market. Hence, it will be difficult for local car manufacturers to gain profit after introducing first hybrid vehicles.

3.0 Impact

Malaysian car manufacturers have announced plans to go for green vehicles after government and Frazer-Nash Research invested Proton Company. Government wished to reduce rate of pollution and give a healthier living for citizens. Thus, introducing first local made hybrid vehicles encourage consumers to purchase. Besides that, as Proton has new technologies to produce own hybrid cars to the country, this able to lead our gross domestic product (GDP) rises from 2.4 percent to 6.8 percent. Thus, it is an advantage for our economy as well as our future of local car manufacturers. (By Tyler Cicerello, Borneo Post on 10 June 2012).

Moreover, hybrid vehicles weigh more than traditional cars. The increased of its weight is due to the heavy batteries in the hybrids. People less likely to be injured when accident happens because of the heavy batteries that make the vehicles have higher protection or safer than traditional cars. Average of hybrid vehicles is 10 percent heavier than traditional cars of the same size and extra heft reduce the odds of being hurt in a crash by 25 percent. (Global Legal Resources by Ankin Law Office, LLC).

Safe Zone of the Perodua and Proton car manufacturer is removed due to the exemption tax for imported hybrid car. This safe zone has protected our local car manufacturer for more than 4 decades and this makes both the local car manufacturer to be ease for their profit for a long time. Thus they are only available /affordable to follow the trend by purchasing different internal part from other car manufacturer while not creating new technology car to compete with Honda and Toyota due to the technology of the company is not as frontier as others.

Sales of the Perodua car manufacturer will decrease due to they does not plan to produced hybrid cars as the the company does not have enough technology and research and development to produce Hybrid car while they are now studying the possibility of producing Sedan cars in the near future said by the Managing Director Datuk Aminar Rashid Salleh in an event interview session on 31st May 2012.

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Malaysia: Going for green vehicles

http://www.hg.org/article.asp?id=27576