Malaysia’s 3rd national car isn’t arriving just yet, with the Ministry of International Trade and Industry (MITI) announcing earlier that Malaysians will see the first model from the 3rd national car project by March 2021. But not much else is known about Malaysia’s upcoming automotive offering, other than the fact that Cyberjaya-based Malaysian company, DreamEdge, is anchoring the project.
Initially slated to be a C-segment sedan, DreamEdge CEO has since said that the car will be a plus-sized B-segment sedan instead. But this may not be true after all, if reports are to be believed. Instead, The Edge Markets reports that AmInvestment Bank Research has predicted that the first offering from the 3rd national car project will be a C-segment, hybrid-powered sedan.
The prototype could be launched as early as March next year, with a full release slated for March of 2021.
“We strongly believe that at the current local technological level, the NNCP will not be a full-electric vehicle. Instead, it will likely be a hybrid vehicle based on an internal combustion engine with an electric propulsion system.”
Do we need a 3rd national car?
It goes without saying that national cars are—rightfully or not—much maligned in Malaysia as it is. Complaints over perceived manufacturing quality are arguable, while a general lack of understanding of the taxation system (local, CKD, CBU) has led to a mediocre (at best) reaction by some towards a 3rd national car.
And with Proton recently striking up a partnership with Geely, and the rebadged Boyue (Proton X70) launched in Malaysia to good reviews, the questions remain if a 3rd national car would cannibalise local efforts from Proton and Perodua.
However, the research house says that it does not expect the upcoming project to compete in the same market as the aforementioned duo. The NNCP will, in fact, benefit the local E&E and semi-conductor industries, according to them.
“As it is likely be a C-segment vehicle, we think that it may not be priced for the mass market but it will be targeting a niche consumer market instead.”
Backing this up, they are continueing to maintain “Buy” recommendations on both MBM Resources Bhd (FV: RM5.54) and DRB-Hicom Bhd (FV: RM3.18)—MBM Resources has a 20% share in Perodua, while DRB-Hicom holds 50.1% in Proton.
What do you think about a 3rd national car in Malaysia? Leave us your thoughts in the comments section below.
