Placed at the centre of the ASEAN region, Malaysia is recognised as an ideal country for digital investment. Reports from The World Bank Group suggest that the digital economy will contribute 20 percent towards the country’s GDP by 2020[1]. Digitalisation will, therefore, continue to penetrate every aspect of day-to-day life, which includes the automotive industry. The trend has already started to revolutionise the auto market, shaping dynamic growth and development opportunities for many local companies.
New zones shape the future of the regional automotive industry
To showcase the latest digital automotive trends, the fair will introduce the new IoT zone to delve deeper into the potential benefits of the IoT (Internet of Things) technology and its application throughout the global industry.
The influence of the IoT has created fresh demand across the entire value chain. Research suggests one connected car can generate higher revenue over its entire lifecycle than ten non-connected cars[2]. The country is making significant progress towards completing autonomous vehicle research and development by 2025[3], showing that the local industry will remain strong with the prospective demand for automated cars. Therefore, upstream and downstream sectors of the industry are now facing both new opportunities, as well as some challenges to maintain competitiveness and meet the changing needs of the market.
As such, the area will feature both hardware and software developers emphasising the combined power of digitalisation, connectivity and advanced software capabilities in the automotive industry. They will share their latest technological breakthroughs such as advanced GPS, telematics, road safety, software for fleet management and cloud-based technology. Exhibitors include the likes of eBay, FleetSol, Inter Enterprise Solutions, PNMB and more.
Elsewhere, the Malaysia Digital Economy Corporation (MDEC), the country’s lead agency for driving the local digital economy and empowering businesses in the ever-evolving market has invited many of its members to the show. Mr Gopi Ganesalingam, Vice President of Enterprise Development, commented: "Nurturing innovation in key industries is an important aspect of Malaysia's digital nation efforts. We look forward to working with this digitalisation effort in the automotive sector, and we encourage local businesses to take advantage of this opportunity to collaborate, and broaden their network, skills and knowledge."
Other supporters bringing their members to the fair include the Selangor and Federal Territory Engineering and Motor Parts Traders’ Association (EMPTA). In addition to promoting the fair to over 900 manufacture, import and export, distribution, wholesale members and more, they will also be hosting a booth at this year’s show.
Truck zone shines a light on the growing commercial vehicle sector
Another zone making its debut at the fair is the highly anticipated Truck zone. The area will spotlight a number of trends that have sparked a rapid growth phase for the commercial vehicle sector across the region. With Malaysia becoming the third largest commercial vehicle market in Asia Pacific, the future of the sector remains positive. The country’s commercial vehicle sector is expected to see growth at a CAGR of three percent, which translates to more than 84,000 unit sales by 2025[4]. As a result, more and more international players are now entering the market, to offer their products and technology.
To meet the demands emerging from the fast-growing market, the zone will welcome a strong collection of distributors, manufacturers and auto parts dealers such as:
- Yamamoto – a new brand representing Truck It, the dealers of truck parts
- CPC Tyre – tyre wholesaler specialised on truck wheels and parts.
- Hinsitsu – displaying their specialised filters
- Biosurge Asia – showcasing the new products and technology in fuel additives and fuel savings for diesel trucks.
The Truck zone will sit alongside the IoT zone, where visitors will also benefit from some of the interconnected technology across the sectors.
Fringe programme events amplify the themes across the show floor
Away from the exhibition area, the show’s fringe programme will highlight the region’s most pressing topics as well as emphasise the themes running through the fairground.
For example, the Fleet Management Conference will explore the synergy between the IoT and commercial vehicle sector. Co-organised by the Pan-Malaysia Lorry Owners’ Association 1987 (PMLOA) and Valebridge Media Services, the event will gather industry experts from Aeroline, Fleetsol, Guardian, Kit Loong, SCANIA and Valvoline. Together, they will carefully examine the challenges and opportunities that companies across the ASEAN region are currently facing. Topics discussed at this event consist of:
- Strategies for improving cost efficiency;
- Telematics to achieve better maintenance and safety standards;
- Differences between in-house and outsourced fleet management solutions; and,
- Tyre management for fleet operations
- System integration.
Other fringe programme events taking place throughout the show include Collision Repair Training Workshop, EMMA Malaysia Final – Car Audio and Modification Competition and Auto NITZ Party, Autotronics Training Workshop.
For more information about Automechanika Kuala Lumpur’s dedicated zones and fringe programme events, you can visit www.automechanika-kl.com, or email the organisers at autoasia@hongkong.messefrankfurt.com.
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Background information on Messe Frankfurt
Messe Frankfurt is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With more than 2,500* employees at 30 locations, the company generates annual sales of around €715* million. Thanks to its far-reaching ties with the relevant sectors and to its international sales network, the Group looks after the business interests of its customers effectively. A comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent).
For more information, please visit our website at: www.messefrankfurt.com
*preliminary figures 2018
[1] ‘Malaysia’s Digital Economy – A new driver of development’, World Bank Group https://openknowledge.worldbank.org/bitstream/handle/10986/30383/129777.pdf (Retrieved 10 Feb. 2019)
[2] ‘Global Automotive Summary’ KPMG. https://assets.kpmg/content/dam/kpmg/xx/pdf/2017/01/global-automotive-executive-survey-2017.pdf (Retrieved 10 Feb. 2019)
[3] ‘Malaysia on track to complete autonomous vehicle R&D by 2025’
Borneo Post. (Retrieved 23 Feb. 2019) http://www.theborneopost.com/2018/03/22/malaysia-on-track-to-complete-autonomous-vehicle-rd-by-2025/
[4] ‘Strategic Analysis of Malaysian Commercial Vehicle Industry, Forecast to 2025’ Frost & Sullivan..
http://www.frost.com/sublib/display-report.do?id=P9A0-01-00-00-00 (Retrieved 10 Feb. 2019)
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