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The more you know: What is EEV (Energy Efficient Vehicle) ( 2017-02-17 )

Prior to the launch of Perodua Axia, the first local made EEV, the netizen started to know about EEV. What is EEV to be exact? Back in 2014, The National Automotive Policy (NAP) had included EEV into one of their new policy, which is to make Malaysia the regional automotive hub of EEV. Under the NAP 2014, car manufacturers that meet MITI’s EEV requirement for carbon emission level and fuel consumption are entitled to customized incentives. In additions, car manufacturer will also be awarded manufacturing license to setup assembly plants in the country.

The Malaysian Automotive Insitute (MAI) measures EEV by whole spectrum of car technologies, be it fuel efficient vehicles, hybrids, EVs, or even alternative fuel driven vehicles like CNG, LPG, Biodiesel, Ethanol, hydrogen and fuel cell. With more and more car makers producing EEV, by 2020 the production of EEV will likely to reach 85 percent, just as what the MAI is aiming for.

MyCarsearch will lay out 4 benefits of EEV, so the next time you purchase a new car, bear in mind to take EEV into consideration.

1. Lower Cost

EEVs are generally costing you less, NAP had introduced a more open policy towards foreign car makers setting up factories and selling cars domestically in Malaysia. More car makers are able to produce locally assembled (CKD) vehicles in Malaysia. CKD (Complete Knock Down) is car that has their parts imported then assembled locally. BAIC (Beijing Auto International Corporation) has introduced 2 new model last year, it was a joint venture between BAIC and local partner Amber Dual. The factory will be based in Gurun, Kedah. With that, both new model EV200 and D20 received EEV status from the government. Overall, the significant difference in pricing would be on the reduction of import duty, the duty on CKD units will be a slash of 25% to 35%.

2. Fuel Efficient

With the recent fuel price hike and Ringgit sliding, it is best to save fuel while driving. NAP lays out EEV specification for cars, with a unique set of criteria of curb weight and fuel efficiency. So far, Perodua has both of its model EEV certified, the Bezza and Axia. While Proton has Ertiga certified. Looking at Japanese cars, we have Honda City, Jazz, Toyota Vios, Camry Hybrid, Innova, Fortuner, Mazda all Skyactiv cars and more. For Premium brands, we have Volvo S60, XC60, V40, Volkswagen Jetta facelift, most BMW 2016 models and more certified as EEV. However, the EEV specification standard will only come into effect once the decision on the introduction of Euro 4 fuels is finalized.

Table: NAP 2014 released the EEV Specifications for Cars.

3. Environmental friendly

NAP did not lay out any specification for EEV in term of carbon emission. However from what we have studied, EEVs are definitely more environmental friendly. EEV is in conjunction with EU policy objectives of reducing energy consumption, CO2 emissions, and pollutant emissions. While we are still working towards there, EEV is the first car standard that being implemented in Malaysia to promote eco-friendly driving. We are looking forward for Euro 4 fuels to be implemented in Malaysia to replace the RON95 Euro 2 fuel. Euro 4 Fuels implementation standard set a limit on the amount carbon monoxide, nitrogen oxides and hydrocarbon emission. Euro 4 Fuels claims to prevent deposit formations which affect engine efficiency. Euro 4 Fuels further reduces the combustion of sulphur rich fuel which could cause acid rain.

4.Car Incentives

EEV will be receiving governmental car incentives. After NAP 2014 first introduced, it is showing a positive sign that there are increasing number of car makers had applied for EEV incentives from the government. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad says companies are welcome to introduce CKD, and ask for bridging incentives from the government, however the incentive for CBU is no longer available. To further encourage car makers to apply for EEV status, car makers will be receiving a set of customized incentives that could include a mix of tax breaks, grants and other incentives once certified EEV. With that, car makers are able to bring down the price of the model to a more competitive level.

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