Car Industry in Malaysia

Topics: Automobile, Renault, Opel Pages: 4 (863 words) Published: March 24, 2011

Many people are living in different countries, times and circumstances going through developments. Automobile industry, the significant industry of Malaysia in these days, has been allocated to increase the industrialization process to develop Malaysian automobile industry.

The Malaysian government started to encourage the foundation of the automobile industry by the recommendation of the Colombo Plan experts in 1964. For developing the industry, the government took some policies; justifying import taxes, applying a tariff system on imports and jointing ventures.

Stability of Malaysia was possible to huge economic growth, especially in 1970s and 1980s. Growth rate at 8 per cent increased per person income to $4000 after a decade. The economy growth rate shrinks until 7 per cent by the Asian financial crisis in 1998. But a lower exchange rate and the government’s adoption of a recovery plan saw the economy bounce back with strong growth 5.6 per cent in 1999 and 8.5 per cent in 2000.

Question, The trends in the car industry changed radically from the beginning of the 80s.

In connection to the above statement, explain the changes in the market condition in the car industry and critically analysed the impacts of these changes to car industry in Malaysia. Your answer should be supported with suitable data, examples and evidences.

Factors of the market conditions

Technological development and innovation

The development in the car industry was started with the National car project; proton (perusahaan automobile national) in 1984. The car project, proton, was a joint-venture project with Mitsubish which a corporation of japan. It started the production Saga in 1985. It has unified manufacturing skills encourage industrial connection and having Malaysian own national brand. The government offered initiative tax and duty rates.

Before producing cars in this country, the government concentrated on the replacement equipment...
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