The odds might seem stacked against him, but Mr Devan Nair, chairman and group chief executive officer of Singapore's first ever automobile manufacturer ALIFE Air Automobile, stands firmly by the viability of his business.
In fact, the maverick has already sold his first batch of automobiles - even before they have rolled off the factory line.
"We have spoken with the dealers, and we have contracts with them for a year's worth of stock. We're completely booked till next year," he said.
For ALIFE, the achievement is impressive. The idea of an automobile manufacturing firm based in Singapore raised some eyebrows when Mr Nair first brought up the subject.
"Whenever I tell people that I am opening up and automobile manufacturing firm in Singapore, their first response is always, zhen de ma?" he said, using a common Chinese expression denoting disbelief.
The response doesn't come as a surprise. Cheaper manufacturing costs in developing Asian economies such as China and Malaysia, as well as competition from other automobil manufacturing powerhouses pose a steep challenge which, Mr Nair admits, he does not have the ability to meet. "We have to be realistic. We cannot imagine competing with the likes of Honda or Suzuki, he said.
He adds: "Instead, we look at what value-add solution we can bring to the consumer. What we're bringing to the consumer is a differentiation of sorts."
His trump card lies in an unlikely formula: The Singapore brand.
"There is a huge amount of strength in just saying, made in Singapore," he said.
"That branding has enormous marketing impact to end users, especially to developing countries in Asia. The influence Singapore has regional wide is very strong."
A slow start
The idea for ALIFE first came about in 1986, arising out of a need to address an urgent problem that the world was facing then, and still does today.
"In 1980, we were told by experts globally that the world will face a greenhouse effect. So I was thinking, oh my goodness we must come up with a solution. We're getting out atmosphere sucked right out of us," Mr Nair said.
"Today we're looking out and we're seeing it,", he said, gesturing towards the haze-laden air outside the office.
"There is a change in our climate drastically that is causing farmers to become disillusioned with their crops. The world is facing food shortage because of climate change without yet feeling a huge impact from it."
The conditions however were not conducive back then. The idea lay dormant until 2013, when Mr Nair felt the time was right to start ALIFE. 'After developing a careful strategy of where the industry goes, how to get the right impact, we decided to go ahead with it," he said.
"As chairman, you have to look at the global picture. You look at the fundamental pictures like environment, economoic climate, and where you want to position your business growth."
Today the company produces fuel-efficient bikes that reduce fuel consumption by as much as 30 per cent. The end goal for ALIFE, Mr Nair reveals is to produce automobiles one day that would emit air cleaner than the one we breath in.
Manufacturing slump
But while environmental concerns today might have increased in magnitude from thirty years ago, the economic climate paints a different picture.
Manufacturing in Singapore has taken a hit in recent months, and the numbers prove it. THe manufacturing Purchasing Manager's Index (PMI) in the country shrank to 49.7 in August, its worst showing since December last year. While a number above 50 is an expansion, anything below that indicates a contraction.
The slump comes as the government continues its policy of restructuring the economy to rely less on manpower and more on innovation. Nonetheless, manufacturing still commands the largest slice of the pie for GDP, at 18.5 per cent. And the government's current emphasis on efficiency has proven a boon for the company.
ALIFE has been relying heavily on innovation and automation to drive its production process. The company currently runs on 30 staff members who churn out 250 units a month. "You have to think of automation. You have to think of intelligent production of manufacturing line processes. You have to think of robotics. You have to think of how to strategise all the different component manufacturers globally," Mr Nair said.
In addition, Mr Nair has also leveraged on existing strengths in the city state, including its reputation as a hub for innovation and automotive manufacturing.
The city state recently topped the rankings as Asia's most innovative economy, according to the Global Innovation Index 2014. Globally, it came in seventh. But while Singapore has fallen short of providing the necessary manufacturing talent he needs, Mr Nair made up for that by drawing on a multinational skill set that spanned across several continents.
"We pull in difference resources to create this. We don't have competence in engineering so we leverage on American engineers. We leverage partners in the Netherlands to come up with the science behind it. We're bringing in industry experts from Korea and Japan to come in here to transfer technology," he says.
"We also have a team in the UK to study the implications of creating an alternative fuel sources that will eradicate pollution completely one day."
ALIFE will launch its first line of automobiles come October, consisting of seven scooter designs.
The scooters will be priced between S$5,800 and S$11,000.
Other automobile designs, including a three wheeled scooter that looks like a motorised trishaw, will be released further down the line, depending on the approval of regulatory authorities.
It might have only just pulled out of the driveway, but Mr Nair is confident of turning Singapore's first manufacturing firm into a success.
"Why do you think I would do the impossible? I'm going to show you. You tell people, come and see. It might look impossible but the reality is we've done it," he said.
This article was first published on January 3, 2015.
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