GROUP 5 Hybrid Car: Are We Ready Without Government Subsidy?

Mohd Firdaus Aina Mardhiah Norhayati Khaidel

Problem statement.

Recently, the concluded Budget 2014 speech made by Prime Minister Datuk Seri Najib Tun Razak contained a fair amount of points covering the transport sector and its related infrastructure. But there is no clear view of the status of the current tax exemption for hybrid/electric vehicles as he did not mention about it. Previously, the full import tax and excise duty exemption for hybrid/electric cars and motorcycles was announced in Budget 2011 that will be due to end on December 31, 2013. It was presumed that some announcement would be made on this matter, but if it didnt happen, are we ready to buy non-incentives hybrid car?

What is hybrid car?

A cross

between a conventional gasoline powered car and an electric powered car

It uses both energy sources to run the car Have 2 engine ,gasoline engine and electricity engine.

Can be divided into 2 main hybrid car ( parallel hybrid car and series hybrid car)
Gasoline

motor is just as functional as in a normal vehicle

The

electric function as helper to the gas motor.

Maintenance
Need Car Air

routine maintenance as any other gas vehicle

can go between 5,000-10,000 miles between oil changes

filter for hybrid car need to be changed approximately every 40,000 miles.
Brake

pads of hybrid car need to changed less frequent. last long at least 8 years or 80 000 miles

Battery life All

other engine maintenance is like other car.

Hybrid car sales in Malaysia

YEAR 2010 2011 2012 2013 (First 7 Month) SOLD CAR (UNITS) 332 8334 15355 8571

Table 1.1 : Statistics hybrid car sales in 4 year

Conventional Gasoline Fueled Car

Using the Internal Combustion Engine (ICE) an engine which the combustion of a fuel such as gasoline occurs with an oxidizer (usually air) in a combustion chamber. There are many type of ICE such as 2 stroke engine, 4 stroke engine, diesel engine and many more. Nowadays, the most common ICE type use in conventional vehicles is the four stroke engine or known as Otto Cycle.

What Is 4 Stroke Engine & How Do It Work?

4 stroke engine in which the piston completes four separate strokes which is:

Intake Compression Power / Combustion

Exhaust

4 stroke engine require 2 revolutions.

Statistic of Passenger & Commercial Vehicles

Benefits of Hybrid car

Environmental concerns

Excellent performance

Increased mileage

Reduced fuel and maintenance costs

Uses clean energy

GOVERNMENT SUBSIDY

The tax exemption and government incentives is necessary to help strengthen interest in hybrid vehicles. Without the tax incentives, hybrid cars would not be as attractively priced and the price of those hybrid electric cars will increase in Malaysia.

To encourage the local production of greener cars.

AVERAGE INCOME OF MALAYSIAN

The 2012 Household Income Survey found the average monthly income of Malaysian households rising from RM4,025 in 2009 to RM5,000 in 2012, an increase of 7.2 per cent annually.

DRAWBACK OF HYBRIDCAR

Production of hybrid car is more complex than conventional gasoline car.

Batteries that are found in hybrid are primarily of nickel.

Expensive parts and maintenance

Comparison between Hybrid car with Conventional car

Less CO2 emission during operation (on the road) More CO2 emission during operation (on the road)

Hybrid car
More CO2 emission during production of nickel metal hydride battery

Conventional car
Less CO2 emission during production of conventional car battery

Comparison between Hybrid car with Conventional car

Hybrid car (Honda Jazz hybrid) Aspects (cost) Conventional car (Honda Jazz)

(RM89 900.00) -RM15 100.00

(RM1 120) -RM0.00 -RM10 960.00 +RM10 982.24 -RM15 122.24

Initial price On The Road

(RM74 800.00) -RM0.00

(RM1 440) -RM320 -RM3 200.00 +RM0.00 -RM3 520.00

Road tax(16 years) Battery life (16 years) Fuel saving(16 years) Total cost(16 years)

RECOMMENDATION

Local Car Company

2013 : government allocate RM120 million to Proton 2012 : RM 100 million already allocated to our national car maker Proton currently has 40 professionals and 30 semiprofessionals in the green field

RM 500 million for Proton collaboration

Proton Exora Hybrid

Thank You

Q&A Session