MARKET ANALYSIS

1.

MARKET ANALYSIS

The analysis is described and based on the automotive sector market in Malaysia
in general terms that are relevant to our business proposal for the

The automotive sector which is characterized by a domestically developed

manufacturing structure geared towards the production of passenger
vehicles and the petroleum consumers. The sector has been heavily
subsidized and protected to produce national champions and automobile
components and parts suppliers.
The Malaysian automobile sector is heavily skewed towards production of
passenger and commercial vehicles which constitutes more than 90 per
cent of the output. Commercial vehicles (particularly in the Pickup truck
segment).
National Automotive Policy

In 2006, the Malaysian government issued the National Automotive Policy

(NAP) in an effort to enhance the competitiveness of the domestic sector
and to better position the sector within the regional and global trading
environment.
There were also further incentives to spur investment into 'GREEN' vehicle
production which included tax exemptions, R&D grants and excise duty
rebates. Tax incentives will also be extended to component makers
focusing on green technology, while all component makers will be able to
access 'soft loan' financing through the Automotive Development Fund
(ADF) and Industrial Adjustment Fund (IAF). Factors governing the vehicle
market demand include, but are not restricted to, overall macro economic
trends, car ownership density and FUEL PRICES.
In the United Nations conference (seeking urgent action to address the
issue of climate change) that was attended by our prime minister, he had
said that Malaysia would offer "credible" cuts in its emissions of carbon
dioxide to halt global warming. Two main issues discussed in the
conference are the reduction of greenhouse emissions which will reduce
the effects of global warming that is threatening mankind. Developing
nations will be provided with financial aid to to shift to greener growth and
adapt to a warmer world. He clearly demonstrated the importance
Malaysia attached to the issue of climate change.

Najib had also made the global climate a priority in his national budget for
2010, pledging a RM1.5 billion fund to promote green technology besides
several incentives to encourage the construction of green buildings.
CPI Increases, Fuel Subsidy Status Quo

A pertinent issue influencing the cost of car ownership is inflation. These

past years, Malaysia has experienced seven consecutive quarterly
increases in the Malaysian Consumer Price Index. The CPI has been driven
by, among other things, rising petroleum prices. As a result Malaysias
subsidy program has become an increasingly heavy fiscal burden for the
government. However, as announced in the 2013 budget, in the short
term the subsidies on fuel products will remain in place. In liter prices this
means that 1 liter RON 95 has a pump price of RM 2.10, although the
actual market price is RM2.80 (33% subsidized). As for Diesel, it has a
pump price of RM1.8, but in real market price is RM2.66 (48% subsidized).
In the medium and long term, given the governments ambition to reduce
the fiscal deficit the petroleum products subsidies might be abolished or
partially reduced.
Local Economy Sector

With this product we would boost the Science and Technology sector
whereby we limit harmful emissions and also safe on fuel in the Transport
industry with this green technology. A noted source of air pollution, the
burning of fossil fuels, contributes a big portion to the worlds economy in
the transportation sector and power industries.
2.

POTENTIAL MAJOR CUSTOMERS LOCAL AND FOREIGN

Our potential major customers would be owners of commercial vehicles ,

generators, power plants (IPP), and any other vehicles because the ------- is
applicable to internal combustion engines (ICE)
The Company aims to focus on commercial automotive and individual
users of all types of vehicles .

Current International Market

We have also ventured into the international market and have customers
installed the ------successfully. Namely; Aqua4U (providing anti pollution
device in India), Republic of South Korea (their transport industry), Mass
Logistic Pvt Ltd , Acme Logistic (Pakistan), Blue-Eye Thailand Pvt Ltd.
Potential International Customers

The Australian market (for their trucks)

The India market ( their trucks and generator sets)
Market Research

We worked together with a Research company Rising Asia Sdn Bhd and we
carried out a research by questionnaire on the customers perception of a
new product introduction for green environment and fuel saving
technology. Our target audience were the college/ University students,
members of public, environmental
personnel, related government
department and email respondents.
Research outcome - Benefit of Product

Customers were impressed with the latest technology, which has proven
to reduce carbon emissions and fuel consumption. Customers were also
elated to learn that despite high cost of fuel there is and alternative and
safe fuel saving method and reduction of carbon emissions which is the
objective that this ---------wants to achieve primarily.
Research Outcome - Areas of Concern

Besides the positive outlook of the research outcome and the acceptance
of the public, the area of concern is that they are not trusting the product
fully as there has been previous failures by different similar products
meant for reduction of fuel. However, we are confident about the
-----------because the technology and the purpose is mainly different. Above
that, we have the policy of POC (proof of concept) to ensure the savings
before the customer purchases the product.

Our product can be Retrofitted into any ICE to make it green technology.
This product is affordable compared to any hybrid technology. Simple
installation, easy maintenance, small and compact, quality material,
unmodified engine, for any vehicle...THE GREEN ADVANTAGE

ABI Research company has stated that, the green car sales almost fetch
2.4 million battery-electric vehicles will be sold worldwide in 2020,
estimating that EV sales (excluding plug-in hybrids and extended-range
plug-ins) will jump 48 percent a year through the end of the decade. That
means that the estimated 150,000 EVs expected to be sold globally this
year will increase to 2.36 million in 2020, with Asia Pacific representing the
fastest regional growth rate.
While EV sales have been what ABI calls "disappointing" so far,
governmental support in the form of subsidies, infrastructure funding and
concessions such as free parking, solo driving in high-occupancy vehicle
lanes and congestion-zone toll exemptions will start boosting EV adoption
during the next few years. The broader adoption of wireless charging and
smart-grid usage will also move things along for the battery-electric
driving set.
While automakers continue to add EV models, the Nissan Leaf and the
Tesla Model S are sold in the US with any sort of substantial numbers.
Through the first nine months of the year, Nissan tripled year-earlier sales
to 16,076 units. And while Tesla doesn't report monthly sales, the Model S
moved about 9,900 units during the first half of the year. The company is
expected to release third-quarter results early next month.
Full Electric Vehicle Shipments to Exceed 2 Million by 2020

London, United Kingdom - 08 Oct 2013

According to ABI Research, the number of full electric vehicles (EV)
shipping yearly will increase from 150,000 in 2013 to 2.36 million in 2020,
representing a CAGR of 48%. Asia-Pacific will exhibit the strongest growth,
driven by mounting pollution issues in its many megacities; however, true
mass-market uptake will only start happening in the next decade.
"Overall, EV sales have been disappointing so far due to a lack of choice
and perceived personal benefits, high purchase prices, and most
importantly, consumer anxiety about range, maximum speed, recharging
times, and the lack of public charging infrastructure. However, with many
car OEMs recently dropping prices and offering more choice and improved
performance, full electric vehicles are on the verge of leaving their eco
niche of environmentally aware and socially responsible buyers, illustrated
by car OEMs such as BMW, Daimler, and Volkswagen investing heavily in
electrification. Importantly, a range of emerging automotive technologies
such as carbon-fiber materials, wireless in-car networking technologies,

active safety including pedestrian detection and autonomous driving,

connectivity, car sharing, and smart grid demand response features will
support the electric automotive revolution as all new paradigms are
mutually reinforcing each other.
However, the role of governments in supporting the case of EVs through
tax rebates and subsidies, stimulating the roll out of public charging
infrastructure, exempting EVs from toll in congestion zones, allowing EVs
on High Occupancy lanes, providing free parking, and mandating very
aggressive emission standards will remain critical during the remainder of
this decade.
Ultimately the connected, autonomous EV will form an intrinsic part of the
loT with vehicles relying on and contributing to the emergence of
intelligent road infrastructure including wireless charging, smart grids,
digital homes and remote healthcare while realizing the promise of safe,
convenient, efficient, affordable and sustainable transportation.
ABI Research's new "Full Electric Vehicles" study covers electrification
market trends and drivers, EV technologies including crowd and cloud
charging, main players and EVs on the market, and forecast for shipments,
EV vehicle base, revenues and public charging infrastructure. It also
describes the role of EVs in the future IoT. The study is part of the
Intelligent Transportation Systems Research Service.

Competitors and their strengths and weaknesses

Our competitors are using similar product like HHO conversion Kits,
hydrogen powered, hybrid, solar and electric vehicles (EV). Where the
above competitors need greater financial output (cost) as compared to
the-----------which is a one off affordable investment and installation
whereby the main element is water and it need to be filled with 1 liter
water for every approximate 2000km which is not the case with our
competitors.
HHO conversion kits - HHO conversion kits are installed in the engine
compartment. They are using high current to produce hydrogen.
Compared to --------------which is installed in the booth space at the back of
the car for safety purposes.

Our ---------- have patented technology which require less than 1amp to
produce hydrogen.
Hydrogen powered vehicles - all vehicles using this technology are fully
hydrogen powered base. Disadvance of this is, hydrogen can only be filled
in limited hydrogen refueling station only. In this country is none and also
in many other countries.
Fully powered hydrogen vehicle is very hazardous. Compared to ----------we only need distill / RO water to produce hydrogen.
-----------is a supplementing the fuel and its not fully hydrogen powered
vehicle.
HYBRID - hybrid vehicles are low powered output. These vehicles are built
for economy not speed.Higher maintenance cost because they have dual
compulsion system where more expensive batteries are used and these
batteries has 5 years life span which can cost up to RM20-30K to be
replaced.
------------------advantage on these point is that by using --------- it increase
the hosepower and tortue because hydrogen increase the octane and
cetane level of fuel and enhance your vehicles ability to achieve perfect
compulsion.
Solar- solar powered car depends on the climate whereby sun is needed to
power the vehicle. Certain amount of energy can be stored and recharging
can only be done from the sun.
This technology is costly and require photovoltaic solar cells which
required to convert sunlight to electricity are expensive. Since most of the
surface is covered with these cells, the cost of tis is much hight than
comparable internal combustion vehicle.
----------- does not require sunlight and its not light sound and environment
defendant. --------------comes with 5 yrs life span. The core components are
very affordable to be replaced.
EV Electrical vehicles - most of the electric cars takes a long time to
recharge the battery. The cant be driven while its being charged. Most
electric cars on the road do not have long ranges that means its only
suitable for short distance only.

---------do not need any charging and no down time. ----------------- can travel
as long as there is fuel in the car.
3.

MARKET SIZE, SEGMENTATION AND TRENDS

We Provide an analysis of the future growth of the -------------- market,

including predicted changes in customer behavior or spending.
Concerns about the sustainability of natural resources are rising,
prompting policymakers and companies to encourage consumers to think
green. Labeling is one way of doing this, but consumer groups advise
against confronting shoppers with too much information and warn that
GREEN claims aren't always independently verified.
We wants to convince consumers that making an effort to protect the
environment can benefit their pockets as well as the planet, for example,
by reducing the consumption of petrol and keeping the environment free
of dangerous emissions or product that are giving the savings as well.
In May 2012, the EU executive tabled recommendations on consumer
empowerment in the EU, including proposals to improve awareness of
sustainable purchasing.
Private housing and transport have also been singled out as areas where
consumers can help to protect the environment. Consumers can
contribute by insulating their homes, replacing older appliances with more
efficient models, or digging deeper into their pockets to invest in solar
heating and other renewable options.
On the road, they can exchange fuel-powered cars for hybrid and electric
vehicles or go for Green Hydrolyzer which is more affordable. But with
growing numbers of companies touting a wide variety of green claims,
consumer groups warn that it is becoming increasingly difficult to know
who or what to trust. Here we have all relevant certificates from IEconomic and job concerns, meanwhile, may make consumers think twice
about spending more up-front for 'greener' goods despite the potential for
longer-term payoff.
More generally, some consumer advocates warn that consumers should
not be expected to take all the responsibility as they may lack the time or
the motivation to check all the information made available to them
however our effort to educate the consumers is on-going.

4.

COMPETITION AND COMPETITIVE EDGES

The Green Advantage of our product is that it reduces emissions, reduces

maintenance cost, saves fuel, prolongs viscosity of lubricating oil and
increases horsepower. The green
hydrolyzer is design for simple
installation, easy maintenance and its size is small and compact. We also
use quality material, unmodified engine and best of all is that it is
designed for all types of vehicles.
Our competitors are cars using HHO conversion Kits, hydrogen powered,
hybrid, solar and electric vehicles (EV). All of the above types of cars my
contribute to the green environment however, these cars may not be
affordable and practical in our country and many other countries as
mention earlier on the issue of recharging and replacement of parts.
That gives us the Competitive Edge compared to our competitors as our
product is not part of the engine but is a supplementary to fuel by
hydrogen combustion. It converts internal combustion engines to
environment-friendly engines. Basically it supplements your fuel by
increasing the octane and cetane level in your vehicles ability to burn all
the fuel that is injected into the combustion chamber, eliminating
unburned fuel thus saving the fuel.
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