UMW Toyota may consider making hybrid car parts in Malaysia

SUBANG JAYA: UMW Toyota Motor Sdn Bhd would consider assembling or manufacturing components of Toyota's hybrid cars in Malaysia if demand and volume increases.

Its president Ismet Suki said Toyota is monitoring the demand for energy efficient vehicles, including hybrid cars in the country.

"We are beginning to see the awareness of hybrid vehicles. When the market improves and the volume is at a reasonable figure, then we will look into that possibility," he said when asked if UMW Toyota is considering manufacturing hybrid vehicles here.

Ismet said Toyota is exploring all possibilities but no firm plans have been made as yet.

Currently, Toyota hybrid cars are made in Japan and Thailand.

"The possibilities are many but at this point, we are monitoring the trend of the hybrid vehicle sales.

"If there is a need to come, it could be assembly or components manufacturing," he said after the launch of the improved Prius and Prius C yesterday.

However, Ismet believes that Toyota's decision would depend on favourable policies to spur demand for such energy efficient vehicles.

"There must be some continuity in terms of promoting hybrid vehicles in Malaysia. If the incentives and popularity increases continuosly, then there is a need to look at it very seriously," he said.

He noted that the government is focused towards developing energy efficient vehicles in the country and expects the soon-to-be announced National Automotive Policy to include such plans.

"We want stability and long-term commitment to the policy. There should be tailor-made incentives to encourage more investments," he said.

Since the government announced full tax exemption for hybrid cars in 2010, there has been a big jump in sales volume.

According to Ismet, after the incentives were in place, UMW Toyota hybrid sales leapt to over 2,000 units from about 80 units.

"This year, we are looking at 5,000 units, including the Lexus hybrid vehicles," he added.

UMW Toyota is the exclusive distributor of Toyota and Lexus models in Malaysia.

Meanwhile, UMW Toyota has targeted sales of 1,500 units for the improved Prius and 2,500 units for Prius C this year.

The Prius is tagged at RM139,900 and RM145,500 for the standard and luxury variant respectively, while the Prius c starts at RM97,000.