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GROUP 5Hybrid Car: Are We Ready

Without Government Subsidy?

Mohd Firdaus

Aina Mardhiah

Norhayati

Khaidel

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Problem statement.

Recently, the concluded Budget 2014 speech made by Prime Minister Datuk

Seri Najib Tun Razak contained a fair amount of points covering the transportsector and its related infrastructure.

But there is no clear view of the status of the current tax exemption forhybrid/electric vehicles as he did not mention about it.

Previously, the full import tax and excise duty exemption for hybrid/electriccars and motorcycles was announced in Budget 2011 that will be due to end

on December 31, 2013.

It was presumed that some announcement would be made on this matter, butif it didnt happen, are we ready to buy non-incentives hybrid car?

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What is hybrid car?

A cross between a conventional gasoline powered car and anelectric powered car

It uses both energy sources to run the car

Have 2 engine ,gasoline engine and electricity engine.

Can be divided into 2 main hybrid car ( parallel hybrid car

and series hybrid car)

Gasoline motor is just as functional as in a normal vehicle

The electric function as helper to the gas motor.

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Maintenance

Need routine maintenance as any other gas vehicleCar can go between 5,000-10,000 miles between oil changes

Air filter for hybrid car need to be changed approximately

every 40,000 miles.

Brake pads of hybrid car need to changed less frequent.

Battery life last long at least 8 years or 80 000 miles

All other engine maintenance is like other car.

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Hybrid car sales in Malaysia

YEAR SOLD CAR (UNITS)2010 332

2011 8334

2012 15355

2013 (First 7 Month) 8571

Table 1.1 : Statistics hybrid car sales in 4 year

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What Is 4 Stroke Engine & How Do It Work?

4 stroke engine in which the piston completes four separate strokes which is:

Intake

Compression

Power / Combustion

Exhaust

4 stroke engine require 2 revolutions.

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Statistic of Passenger & Commercial Vehicles

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Benefits of Hybrid car

Environmental

concerns

Increasedmileage

Uses cleanenergy

Reduced fueland

maintenancecosts

Excellentperformance

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GOVERNMENT SUBSIDY

The tax exemption and government incentives is necessary to hel

strengthen interest in hybrid vehicles. Without the tax incentives, hybrid cars would not be as attractive

priced and the price of those hybrid electric cars will increase in

Malaysia.

To encourage the local production of greener cars.

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AVERAGE INCOME OF MALAYSIAN

The 2012 Household Income Survey found the

average monthly income of Malaysian householdsrising from RM4,025 in 2009 to RM5,000 in 2012,

an increase of 7.2 per cent annually.

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DRAWBACK OF HYBRIDCAR

Production ofhybrid car is

more complexthan

conventionalgasoline car.

Batteries thatare found inhybrid are

primarily ofnickel.

Expensive partsand maintenance

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Comparison between Hybrid car with

Conventional car

Less CO2 emissionduring operation

(on the road)More CO2 emissionduring operation

(on the road)

More CO2 emissionduring production ofnickel metal hydride

battery

Less CO2 emissionduring production of

conventional carbattery

Hybrid

carConvention

car

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Comparison between Hybrid car with

Conventional car

Hybrid car

(Honda Jazzhybrid)

Aspects (cost) Conventional car

(Honda Jazz)

(RM89 900.00)

-RM15 100.00

Initial price On The Road (RM74 800.00)

-RM0.00

(RM1 120)

-RM0.00

Road tax(16 years) (RM1 440)

-RM320

-RM10 960.00 Battery life (16 years) -RM3 200.00

+RM10 982.24 Fuel saving(16 years) +RM0.00

-RM15 122.24 Total cost(16 years) -RM3 520.00

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RECOMMENDATION

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Local Car Company

2013 : government

allocate RM120million to Proton

2012 : RM 100million alreadyallocated to our

national car maker

RM 500 million forProton collaboration

Proton currently has40 professionals and30 semi-

professionals in thegreen field

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Proton Exora Hybrid

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Thank You

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Q & A

Session