Malaysia paves the way for an electrified automotive industry

 The development of an Automotive High-Tech Valley (AHTV) should signal the country's highly ambitious vision to promote digital transformation, tackle carbon emissions and spur on the adoption of new energy vehicles.

Already, sales of electric vehicles (EVs) are rising. According to the Malaysian Automotive Association (MAA), figures represent an increase of 112 percent from the same period of last year, reaching 6,617 units – a positive indication of a strong growth trajectory in the latter half of 2024^[1].

As such, the entry of EV brands into the Malaysian market is set to expedite the progression of the entire automotive supply chain. It has led to the country becoming a honeypot for FDI amongst global automakers. For instance, the realisation of the AHTV is being spearheaded by a joint-venture between DRB-Hicom Bhd and Chinese counterpart Zhejiang Geely Holding Group Co Ltd. The AHTV expects to attract some RM 32 billion (USD 6.8 billion) worth of investments over the next 10 years^[2]. Thus, the increasing presence of major manufacturers should lead to wider global players investing in the market to establish a foothold.

This growth is also fuelled by government initiatives and incentives, such as tax investment allowances and pioneer status, import and excise duty exemptions, road tax exemptions, subsidies on charging facilities, and more^[3].

The transition is fusing into day-to-day life with the rise of e-commerce, ridesharing, and food delivery services becoming the norm. Consumers are also increasingly turning to online platforms for research, comparisons and purchases with door-to-door delivery. Additionally, consumers are demanding more personalised, connected and environmentally-conscious options.

These trends in lifestyle are introducing new opportunities to the entire automotive industry across OEM and aftermarket, powering the innovative advancements of digital adoption, customised service provisions, fleet management, route optimisation and more. It is a shift that not only improves efficiency but also fosters sustainability.

Such solutions will be on full display at the upcoming edition of Automechanika Kuala Lumpur. The event is Malaysia's leading trade fair in the regional automotive aftermarket, and in its 13^th edition, receives continual support from exhibitors and visitors, as well as government bodies, industry associations and media. Held from 1 to 3 August at the Kuala Lumpur Convention Centre (KLCC), the fair expects to welcome over 300 local and overseas exhibitors from 20 countries and regions across 9,710 sqm of exhibition space, exploring business opportunities and development trends in the thriving market.

It will cover areas of the supply chain including parts and components, diagnostics and repair, body and paint, accessories, car care, oils and lubricants, customising as well as automotive mobility solutions. The dedicated Automotive Mobility Solutions Zone will feature the latest provisions for urban development, city planning and smart mobility, which will revolve around local infrastructure and technology.

In addition, the Automotive Mobility Solutions Conference is set to be a highlight during the first two days of the show. It will converge a strong line up of speakers from the likes of Bosch Rexroth, ChargeSini, Forwardlog, Henkel, MARii, Materialise, MDEC, PETRONAS, SHRDC, Siemens, Swift, Universiti Teknologi Malaysia, VinAI, VinFast, Volkswagen, Volvo Malaysia, ZEVA and more.

The conference will delve into various topics across the supply chain, including automotive mobility solutions, electrification and digitalisation, automotive logistics, warehousing and supply chain, as well as automotive manufacturing, transformation and automation.