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Energy Efficient Vehicles Explained

Energy Efficient Vehicles Explained


The National Automotive Policy 2014 (NAP 2014) was announced in 2014 with the main objective of making Malaysia a regional automotive hub of Energy Efficient Vehicles (EEVs), according to the Malaysia Automotive Institute (MAI).

“The policy was announced under targeted approach that focused on EEVs. This was to streamline the efforts of industry players, research institutions and government initiatives towards product and process technologies that were relevant to global trends of future powertrains, fuel consumption patterns and emission requirements”, said Dato’ Madani Sahari, Chief Executive Officer of MAI.

Many may not realise that EEVs are not just electric vehicles. In general, EEVs are any vehicle that complies to a set of fuel efficiency standards and carbon emission requirements


EEV Label

This includes vehicles with any powertrain, such as internal combustion engines (ICE), fuel efficient vehicles, Hybrid electric vehicles (HEV), Plug-in Hybrid electric vehicles (PHEV) and full electric vehicles (EV). The NAP2014 also recognises vehicles propelled by other energy sources such as; Compressed Natural Gas, Liquefied Petroleum Gas, Biodiesel, Ethanol, Hydrogen and Fuel Cell.

“It is now common knowledge that EEVs focus on any vehicle that meets a set standard of fuel consumption and carbon emission level. The NAP 2014 would allow business incentives to be directed towards technology and talent development that centres around energy efficient products and processes. This would further spur targeted research and innovation led by the industry, in turn allowing increased participation from academia, research institutions and the public”, Dato’ Madani explained.


Figures for EEV penetration in 2016 and 2017

EEV penetration has increased year-on-year since the NAP 2014 was launched. In 2014, the penetration was at at 14.1%. However in 2015, it improved 32.6%. EEV penetration in 2015 and 2016 stood at 32.6% and 42.8% respectively. In 2017, the figures passed the halfway mark, recording a total of 52%, surpassing the initial target of 50%. The constant increase for the past 3 years led MAI to set a target of 60% for 2018.

“However, the path to success is still long and winded, and it will take more collaborative efforts to fully realise the potential that Malaysians have towards achieving competitiveness in the global automotive markets.” said Dato’ Madani.

To know more about EEVs and the future of the automotive industry, watch these videos: