DreamEDGE reaffirms NNCP prototype on track for mid-2020

KUALA LUMPUR: The company leading the new national car project has clarified that the vehicle will likely be a B+ segment sedan car powered either by an internal combustion engine or a hybrid powertrain.

According to Affin Hwang Capital research, DreamEDGE, the Cyberjaya-based company responsible for overseeing the new national car project (NNCP), offered details on the make of the vehicle following a meeting. DreamEDGE also reiterated that the NNCP would not be another re-badged Daihatsu.

The design concept and development of the car will be engineered by DreamEDGE while technology partner Daihatsu will assist in the development of the powertrain and car platform.

"NNCP’s pricing is expected to be competitive, in our view, given that the high local content (c.90%) will benefit from incentives likely included in the upcoming National Automotive Policy 2019," said Affin Hwang.

The car will also feature the latest technology such as car connectivity, a smart vehicle system and advanced driver assist system.

DreamEDGE aims to sell at least 3,000 units a month during its first year of sale. For context, Proton and Perodua sold about 52,600 and 163,800 passenger cars in the first 10 months of 2019.

Affin Hwang expects DreamEDGE's proposed timeline for the NCCP to be tight, with plans to launch a model in production by 1H22.

However, DreamEDGE management reaffirmed that a working NNCP prototype is on track for release by mid-2020.

The research house added that DreamEDGE has received the blessing from Daihatsu's participation and management is in active discussion with several parties on funding.

The estimated start-up cost based on Daihatsu's platform and powertrain could require at least RM600mil but dealership network establishment and production-related preparation costs could see cost overruns of up to RM1bil, it said.

"In terms of production, we gather that the NNCP is to be built via contract manufacturing, which will likely utilise assembly plants with excess capacity," added Affin Hwang.

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