Although the National Automotive Policy (NAP) has been revamped to include several new measures to protect the Malaysian auto industry, it is missing the most critical step forward which can produce the greatest good for the people and the nation.
We could save billions of ringgit a year without having to increase oil prices if we follow the trend towards diesel vehicles that is taking place in the world, especially in Europe. Over on the European continent, more than half of the vehicles currently sold are diesel powered, and in Belgium and France nearly 80% of all the new vehicles are diesel driven.
It is in our national interest to emulate this trend by embracing a policy to increase the number of diesel passenger cars in Malaysia. However, the NAP policymakers appear not to be aware of this global trend and consequently have omitted any mention or policy analysis of this major change taking place in the auto industry.
About two months ago, I hired a car and drove around England. The price of diesel and petrol there was about the same at £1.20 a litre (which is about RM7 per litre) but I found diesel to give me better savings as diesel models use significantly less fuel than their petrol equivalents.
It is universally acknowledged that the diesel engine is the most fuel efficient of all internal combustion engines and consumes 30-50 percent less fuel than petrol-powered engines. You might wonder though what other reasons – besides the much better fuel economy – may have prompted Europeans to use more diesel vehicles.
There are several contributory reasons why the uptake of diesel powered cars has risen at such a rapid rate in the past decade. These are as follows:
- Cleaner engines which produce less harmful greenhouse gases such as carbon monoxide, hydrocarbon and carbon dioxide. In some of the developed European countries that are eco-conscious, drivers have to pay emissions-based charges.
- Better performance. Recent advances in diesel technology have significantly improved the drivability and efficiency of modern diesel vehicles, and this translates to far better overtaking and acceleration features.
- Less noise. Superior engine torque at lower engine speeds also results in reduced noise levels.
- Greater durability. Another factor making diesel cars more attractive to drivers.
- Cheaper to maintain. Diesel engines are noted for their lower average costs of maintenance over a period of time.
The diesel that is derived from petroleum is called petrodiesel. However, there are other types that are not derived from petroleum, such as biodiesel, biomass-to-liquid (BTL) or gas-to-liquid (GTL) diesel, increasingly being developed and adopted.
There is also diesel fuel with substantially lowered sulfur contents called Ultra-low sulfur diesel (ULSD). This ULSD type has cornered the market in America and Europe since 2007.
Diesel fuel itself has many attributes that make it such an effective source of power. These include:
1. Safety – Diesel is a safer fuel than gasoline or other alternatives. It is less flammable and explosive than gasoline.
2. Energy content – Diesel fuel contains about 30% more energy per unit volume as compared to gasoline.
3. Performance – Diesel fuel has a greater power density than other fuels; it packs more power per unit volume than other fuels.
Western Europe diesel car sales shares, 1999-2008| 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |
| Belgium* | 54.3% | 56.7% | 62.6% | 64.2% | 68.3% | 69.9% | 72.9% | 74.7% | 76.9% | 78.7% |
| France | 44.1% | 49.0% | 56.2% | 63.2% | 67.4% | 69.2% | 69.1% | 71.4% | 73.9% | 77.3% |
| Germany | 22.4% | 30.4% | 34.6% | 38.0% | 39.8% | 44.0% | 42.7% | 44.3% | 47.7% | 44.1% |
| Italy | 29.1% | 33.7% | 36.6% | 43.6% | 48.7% | 58.4% | 58.5% | 58.2% | 55.7% | 50.6% |
| Norway | 8.2% | 9.0% | 13.3% | 17.5% | 23.2% | 27.0% | 39.2% | 48.4% | 74.4% | 72.4% |
| Spain | 51.7% | 53.1% | 52.5% | 57.3% | 60.4% | 65.1% | 67.8% | 70.0% | 70.8% | 69.3% |
| Switzerland | 6.6% | 9.2% | 13.3% | 17.8% | 21.5% | 25.9% | 28.1% | 30.0% | 32.5% | 32.4% |
| UK | 13.8% | 14.1% | 17.8% | 23.5% | 27.3% | 32.5% | 36.8% | 38.3% | 40.2% | 43.6% |
* Beginning in 2005, Belgium data also include Luxembourg.
Note: Total includes Austria, Belgium, Denmark, Eire, Finland, France, Germany, Greece, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
Source: Automotive Industry Data Newsletter, Nos. 0102, 0302, 0501, 0602, 0702, 0714 and 0904.
In Malaysia, diesel engines unfortunately have a reputation of being fitted in old taxis. But advancements in technology have managed to upgrade the diesel engine so that it no longer emits soot and the less pleasing smell that Malaysians tend to associate with it. Today, diesel is the ‘go green’ product for environmentalists who drive, that is, if they do not bicycle as their first choice.
It is true that at present, it costs more to buy a diesel car. The pay-off however is that diesel cars generally retain their value better than petrol versions when you sell your car. This is where the authorities can step in with their regulatory controls.
Among some of the measures as to how the Malaysian government can promote diesel vehicles are:
- Issue preferential new APs for the import of diesel vehicles
- Reduce import duty for diesel vehicles
- Reduce road tax, so that diesel vehicles are cheaper than petrol vehicles
- Issue new assembly licences for the assembly of diesel vehicles
- Reduce price for diesel making it cheaper than petrol
