BMW Malaysia approaches end of 2011 with positive note

BMW Malaysia approaches end of 2011 with positive note

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As we approach the year-end festive period, companies gradually begin to slow down operations, reflect on the year’s performance, and look forward to the new year ahead. The bean counters at BMW Group Malaysia certainly have a good year to reflect on, with the previous year’s sales figure already exceeded in the first eleven months of this year.

In 2010, the combined sales of BMW, MINI, and Motorrad vehicles were 4,509 units, the company’s highest ever. For 2011, 5,096 vehicles were already sold, representing a 13% increase without even needing to take December sales into account. This makes Malaysia one of BMW’s fastest growing markets in the world.

Looking forward to 2012, the company once again renews its calls for a sustained push to encourage increased usage of green technology. Currently, the Government exempts full electric cars and hybrid cars with engine capacities below 2,000cc from import and excise duties. Although active in pursuing sustainable technology, BMW does not have green vehicles that fit the Government’s description.

BMW diesel engines are well noted overseas for their excellent blend of performance, economy and low emissions, but these benefits are not fully realized here in Malaysia as our market currently makes do with fuel refined only to Euro 2M standards – not nearly as good enough. There is a concrete road map in place for the implementation of B5 biodiesel throughout the country. While this is admirable, it does not address the issue of high sulphur content present in the fuels which in turn destroys the diesel particulate filters that help make diesel engines a valid green option in European countries.

In a statement released today by BMW Group Malaysia, Managing Director Geoffrey Briscoe noted that, “As Malaysia continues to move further up the green technology and sustainability chain, it is imperative that constant measures are implemented to prime the market for the adoption of the latest innovations in automotive industry. The Malaysian government’s long stated intention of introducing Euro 4 specification for fuel in the near future, for instance, is a critical step towards the country’s evolution into an actual advocate for Clean and Green Technology in the automotive industry, one which we at BMW hope the government will comprehensively commit to.”

This is not the first time that the implementation of Euro IV fuel specifications has been called for, but a frustrating lack of willpower from the authorities sees us stuck with Euro 2M for now and the foreseeable future. In fact, it was even announced recently that the original deadline for Euro 4 implementation has been moved from 2012 to 2014. The writer notes this as a disappointing development.

Briscoe notes that, “More can and should also be done to include immediate green and clean innovation available in today’s automotive world such as Advanced Petrol and Diesel engines which run on lower sulphur content Euro IV specification fuel, as well as the introduction of incentives for all hybrid technology including those for hybrid vehicles above the 2,000cc capacity as these engine can prove to be more efficient than their smaller counterparts.”

Although not offered in Malaysia, BMW does have a lineup of hybrid-powered vehicles which they gradually expanding. They currently have the ActiveHybrid 5, ActiveHybrid 7, and ActiveHybrid X6, all of which feature high capacity turbocharged engines to form the combustion half of their powertrain setup.

Returning to his point on diesel vehicles, Briscoe notes that diesel models make up 18% of his company’s sales, indicating a ‘growing interest and demand for the green technology in the country’. He also points to the long term cost benefits of operating diesel engines due to their inherently low fuel consumption.

“The year 2012 would be the appropriate time for a comprehensive roadmap to ensure all stakeholders are adequately prepared for the introduction of the higher fuel specifications,” Briscoe says. Damned right it is.

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