Shamsor: Brand Rivalry Will Reduce Price & Improve Quality - Benefit Consumer

Mohd Shamsor Mohd Zain, the President of the Malaysian Automotive Association (MAA) and Marketing Director of UMW Toyota Motor Sdn Bhd, stated that the entry of new players such as Tesla and BYD into the domestic market with over 40 existing brands will undoubtedly bring excitement and interest among consumers.

Brand rivalry would indirectly establish a buyer's market, providing more options and enhancing competitiveness, resulting in better services and offerings for consumers. This was evident with Tesla's official entry into the Malaysian market, with the Model Y Tesla priced competitively at RM199,000, which became the talk of the town, causing many other brands to hit the drawing boards in order to remain appealing in targeting similar segments of consumers.

Despite Malaysia's relative newness to the EV industry, Shamsor voiced optimism for quick holistic expansion as a result of strong government support, progressive national regulations, and rapidly expanding consumer enthusiasm. He believes that the presence of new EV players will increase competition, drive investment, and result in higher product and service quality.

Moreover, he highlighted the new business opportunities would spur up for vendors as more EVs, including completely knocked down models, enter the country.

On the other hand, Prof Datuk Dr Shazali Abu Mansor, the Pro Vice-Chancellor of I-CATS University College, pointed out that EVs still remain as an offering for the niche market in Malaysia's automotive landscape. Therefore, to penetrate the market effectively, he emphasised the importance of balancing demand and supply and making necessary adjustments in employment growth, tax, and subsidy allocation, aligning with world standards.

According to Dr. Shazali, some pro-EV countries impose carbon taxes to encourage the use of environmentally efficient automobiles. He underlined the importance of embracing new changes as Malaysia's economy transitions from agriculture and commodity-based to robust manufacturing and service industries, with the goal of becoming a high-tech nation by 2030.

As much as we agree with Dr. Sazali, such transformation will only occur in the long run if the Malaysian automotive sector is fully opened up, with lower-cost vehicle offerings entering to cater to all income segments.

Even that would be difficult because the charging network would need to expand in tandem with the immediate introduction of vehicle end-of-life policies to begin phasing out older ICE vehicles from the system. That is easier said than done, as public outrage might cause any administration in power to lose voters' trust in the process. 

Source: BERNAMA