New Inokom Vehicle to Be Introduced in mid-2002
As reported on this website yesterday afternoon, Inokom will be producing a Hyundai-based model which is has described as a ‘multi-functional vehicle’. While there was no official mention in the press release on the model, it is widely known that it will be the Atoz which Hyundai launched in 1997. In fact, during her address, MITI Minister Dato’ Seri Rafidah Aziz herself identified the model!
Few details are available on the project but AUTOWORLD.COM.MY learnt that the plan is to produce at least 20,000 units a year at the plant in Kulim. The plant, which began operations in 1997, has so far been producing commercial vehicles (Inokom Permas and Lorimas) and has a capacity of 40,000 units a year.
“We estimate that an additional investment of US$10 million (RM38 million) will be necessary for this latest project with Hyundai,” said Amer Hamzah Ahmed, Chairman of Inokom. He explained that there were still technical details to be finalised with the Korean automaker following the signing of the Memorandum of Agreement today. Hyundai would not be providing any financing but it does have a share in Inokom. The agreement is for the provision of parts and technology to make the vehicle.
Encik Amer clarified that although Oriental-Hyundai is already assembling Hyundai products at its Johor plant, Inokom’s latest venture was not a conflict. The Inokom product will carry an Inokom badge, he confirmed. He added that Inokom’s entry into this segment was not with the aim of competing with Proton and Perodua but to complement their efforts in offering national products to Malaysians.
There was some confusion over the description of the model, some officials referring to it as a ‘micro-multi-functional vehicle’ and others (including the minister) calling it a ‘micro-MPV’. On this matter, Encik Amer explained that the terms are all the same. It is likely that Inokom is wanting to avoid having it classified as a MPV so that it can instead go into the commercial vehicle category. If this is possible, the tax payable would be lower than for MPVs. The Proton Juara, incidentally, is also classified as a ‘commercial vehicle’ for tax purposes and therefore pays lower duty than MPVs.
Considering that Inokom is a national truck maker, will it approach the government for preferential duties for the model? To this question, Encik Amer said that was something they were already discussing with the relevant government agencies. He hoped that such a request would be granted for the initial phase of production before the market opens up under AFTA. In the longer term, there are plans to export and Hyundai will also consider using Malaysia as a production base for ASEAN.
No price is available yet for the Inokom vehicle which may or may not be called Atoz or Atos. At present, the CBU version sold by Hyumal costs around RM60,000. Local assembly and a the omission of 140% import duty could bring the price down to the level of the Perodua Kenari perhaps? Incidentally, the name ‘Atoz’ stands for `A to Z’ and was selected through advertisements inviting the Korean public to suggest names for Hyundai’s model.
As for the design, it is likely that Inokom will make some cosmetic changes. It may even use the Hyundai Santro as a basis, this model being an updated version of the Aroz which Hyundai is building at its factory in India. Interestingly, when Hyundai launched the car in India, it also used the term ‘multifunctional vehicle’.
