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Comment: Electric vehicles are facing a rapid rise from niche to mass market in Malaysia

Wapcar Automotive News – The government push to use electric vehicles (EVs) in Malaysia is driven by the need to reduce carbon emissions, attract investment and create job opportunities. Malaysia also needs to catch up with neighboring automakers that are focusing on producing electric vehicles.

There are plans to expand the use of electric buses and electric taxis as part of Malaysia’s efforts to encourage consumers and industry to switch from fossil fuels to electricity. However, despite the improvement of public transport, private transport remains important due to the low accessibility of public transport for commuters.

The establishment of Proton Malaysia and Perodua Malaysia, as part of the national automobile policy in the 1980s, contributed to an increase in the number of car owners. Low-cost versions of existing models from foreign technology partners produced by these companies are affordable and protected from foreign competition.

It is not surprising that most Malaysians, including half of the poorest 10% of households, can afford to own a car and continue to view personal car ownership as a necessity. set.

DOESN’T FITS MALAYSIAN AIRLINES

Electric vehicles can only enter the Malaysian market with significant speed if they go into the mass market rather than the niche market. The 2022 budget already provided incentives to accelerate EV adoption, such as exemptions from all import duties and excise taxes, but while these incentives lower the price of EVs, they still do not afford the average Malaysian.

Electric vehicles now range in price from over RM150 million (S$53,600) to nearly RM700,000 for individual buyers. Sales of the regular Perodua models continue to lead the domestic car market, at 37.4% in 2021. They are led by sales of the Myvi, the best-selling car in Malaysia. A Myvi costs around RM46,500 to RM59,900, just over a third of the price of the cheapest electric vehicles.

Low-income buyers, first-time car owners and second-hand car users are the main Myvi consumers.

It’s not the lack of technology that is delaying the announcement of when the economical electric vehicles will be on sale in Malaysia. Perodua’s manufacturing arm is 51% owned by Japan’s Daihatsu, which in 2018 reorganized its organization to include an electric vehicle development team and an electric powertrain development team.

In 2022, Astra Daihatsu Motor unveiled the Daihatsu Ayla EV concept at the Gaikindo Indonesia International Motor Show near Jakarta. This model is a battery-powered version of the Daihatsu Ayla, which is the Indonesian version of the Axia from Perodua (in Malaysia).

The Perodua Axia is priced from RM24,090 to RM43,190. This shows that Perodua already has a technology partner capable of producing a battery-powered version of a mainstream car.

REDUCE DRIVERS ANALYSIS

The availability of a viable car model will not guarantee sales, as Malaysian consumer demand for electric vehicles is limited by the lack of charging stations.

Studies have shown that consumers may be less inclined to buy electric vehicles if public charging stations are not available. To this end, Malaysia aims to establish 10,000 charging stations by 2025, up from 1,000 existing stations.

Although there is a target, there is no plan on how to achieve multiple toll booths as the private sector will coordinate with the Malaysian Green Technology and Climate Change Corporation on this.

For its part, Tenaga Nasional Berhad plans to install charging stations along Malaysia’s highways and interstates. The government offers tax incentives to encourage the private sector to cooperate in developing Malaysia’s toll infrastructure.

There are small signs of progress. Petronas is starting to enter the toll infrastructure sector by partnering with Mercedes-Benz Malaysia and EV Connection. But for now, it has only built charging facilities at 12 locations in Peninsular Malaysia, while Perodua has no announced plans. 

LESS OF FINAL CHARGERS AT HOME OR WORK

The convenient location of charging stations is also important for electric vehicle users. Field tests in Germany have shown that 80% of battery charging is done at home or at work. Charging an electric vehicle at home overnight is considered the best option in terms of convenience, as the vehicle remains unused for a long time while a relatively low electrical load is used on the grid.

However, urban Malaysians living in apartments will not find it as convenient as those living in rural or suburban homes to charge their electric vehicles.

Charging devices are not available in this type of housing because the homeowner or building owner is not satisfied with the high investment costs to install such devices and the significant cost of overhauling a substation of buildings, for older buildings with outdated electrical networks.

There are currently no regulatory requirements for apartment buildings, parking lots and shopping malls to provide charging infrastructure, making public charging vehicles a necessity, possibly even public goods. The second best option for setting up EV charging infrastructure is in offices, where most vehicles are parked for long periods of the day. But a similar challenge arose in Malaysia due to the lack of affordable workplace toll infrastructure.

As demand for electric vehicles, even affordable ones and the development of charging infrastructure seem to be a chicken-and-egg problem, Malaysia needs to strengthen both sides. but so that electric vehicle can penetrate the domestic mass market.

Uneeb Khan
Uneeb Khan
Uneeb Khan CEO at blogili.com. Have 3 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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