The electric vehicle market in Malaysia recorded a negative CAGR of ~xx% on the basis of revenue in between 2016 and 2021. The slowdown in growth is attributed to the lack of domestic manufacturers in the ecosystem, resulting in imports of these vehicles which ultimately, shoots up the price of EVs. Coupled with that, the advent of COVID-19 also impacted the EV market due to consumer’s financial constraints and job losses. The electric vehicle market in Malaysia is heavily dependent on international manufacturers as national brands such as Proton and Perodua have not been able to establish its presence in the EV market as of 2021. However, consumers increasing awareness on environmental hazards along with favorable government initiatives such as income tax and sales tax exemptions for purchasing EVs will contribute in the growth of EV four-wheeler market in coming years. Malaysia wants to encourage people to adopt electric vehicles and other fuel-efficient vehicles. The electric vehicle market in Malaysia will witness rapid transformation with the advancement of solid-state battery technology which increases the efficiency of the battery performance. The Malaysian electric vehicle market is still in its early phases of development. The Malaysian government's EV rules and the continued introduction of new models contribute to the country's EV market growth.
Along with being noisy, the mushrooming number of conventional cars, motorcycles and scooters is driving up energy consumption, air pollution and greenhouse gas emissions. To combat those problems, Malaysia, with support from the United Nations Environment Programme (UNEP), is encouraging drivers to trade in gas-guzzlers for electric motorbikes.
UNEP has worked with electric vehicle associations in Malaysia, the Philippines, Singapore and Thailand to develop comprehensive recommendations for policymakers to spur the adoption of electric two- and three-wheelers. The incentives announced in Budget 2022 are expected to kick start EV adoption among the general public and the plans for government fleet electrification will further pave the way to instill public confidence and interest.
In Malaysia, the launch of the National Low Carbon Cities 2030 plan, entails the establishment of 200 low carbon zones across the country, which may bring about a greater push for green vehicle options, including EVs.
Malaysia Electric Vehicle Market Segmentation, 2021
By Type of Electric Vehicle (4-Wheeler and 2-Wheeler):
In 2021, Electric 4-Wheelers dominated the Electric Vehicle Market in Malaysia and generated a revenue of USD xx Million. Electric 2-Wheelers helped in contributing xx% of the total Electric Vehicle market in Malaysia generating a revenue of USD xx Million.
By Type of Electric two-wheeler (e-scooter and e-motorcycle):
E-Motorcycle dominated the Electric two-wheeler market in Malaysia by contributing xx% to the total revenue share in 2021. The rise of taxi and delivery services created demand for e-motorcycle
By Type of E2V Battery Capacity (<25Ah and >25Ah):
In 2021, Electric 2-Wheelers using a battery capacity of <25Ah dominated the market by capturing a market share of xx% with a revenue of USD xx Million. In order to get a speed of at least 50kmph, as per the government rules, a battery capacity of more than 50Ah will be required on going way forward.
By Type of E2V Battery Technology (Removable Battery and Non-Removable Battery)
Electric 2-Wheeler Vehicles can also be segmented on the basis of Type of Battery Technology. Non-Removable Battery and Removable Battery. Non-Removable Battery dominated the market by capturing xx% of the market share.
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By Type of E2V Battery Type (Lead Acid and Lithium Ion)
Improved discharge and charging efficiency coupled with longer life span contributed in enhancing the demand of lithium-ion batteries compared to lead acid batteries. Although, lithium-ion batteries are much more expensive that its counterpart but their maintenance free feature will match their higher price tag, which will be preferable to consumers.
By Type of E4V Technology (BEV, PHEV, and HEV):
Electric 4-Wheeler Vehicles can also be segmented on the basis of type of technology: Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), and Battery Electric Vehicles (BEV). xx% of the revenue contribution is from Hybrid Electric Vehicles (HEV) which is mostly used in EV Brands offered by Honda. Other brands offering HEV are Nissan, Audi, and Toyota.
By Type of E4V Class (Mid-priced (less than 300,000) and Luxury (more than 300,000)):
Malaysia, xx% of the revenue from the Electric 4-Wheeler market was generated through the Luxury segment which is priced above 300,000. Examples include BMW, Porsche, Tesla, Mercedes, etc.
Competitive Landscape in Malaysia Electric Vehicle Market, 2021
Malaysia’s Electric Vehicle Industry is consolidated with presence of limited players for 2-wheelers as well as 4-wheelers in Malaysia. These players compete with each other on the basis of products offered, product quality, value added services, product pricing, its features, battery technology type, battery capacity, battery type, voltage type etc. All the electric 4-wheeler brands available in Malaysia are imported. Local 4-wheeler brands such as Proton and Perodua are yet to launch electric 4 wheelers in Malaysia. Companies like Eclimo has adopted a B2B model, where they rent/sell their electric 2-wheelers to corporates such as KFC. Renting electric 2-wheelers and 4-wheelers has been increasing in Malaysia.
Future outlook of Malaysia Electric vehicle, 2021-2026E
Electric vehicle market in Malaysia is estimated to generate a revenue of USD xx Million in 2026E, expanding at a CAGR of xx% in between 2021 and 2026E. One of the major determinants for the surging growth in coming years is attributed to the government initiatives and policies supporting the EV industry such as exemption of import duty, excise and sales tax for CBU and CKD electric vehicles till 2023 and 2025 respectively. Coupled with that, income tax exemption for individuals up to RM 2,500 on the cost of installation, rent, hire or purchase for electric vehicle charging facilities will serve as a catalyst for the growth of the industry. Increasing awareness on environmental impacts and consumer’s consciousness towards limiting carbon footprint will also contribute in increasing the business potential of EV players.
The electric vehicle market in Malaysia will witness rapid transformation with the advancement of solid-state battery technology which increases the efficiency of the battery performance.
The industry is expected to record less number of EVs sold after 2023E as the exemption period of tax and import duties are lifted.
Key Topics Covered in the Report- Ecosystem of Electric Vehicles Industry
- Value Chain Analysis of Electric Vehicles Industry
- Business Models of Major Entities in the Electric Vehicles Industry
- Customer Preferences and Buying Decision Behavior in Electric Vehicles Industry
- Market Size of Electric Vehicles Industry by Transaction Value and Sales Volume
- Market Potential of Malaysia Electric Vehicles Market
- Market Segmentation of Electric Vehicles Industry by type of EV, type of electric 2 wheelers, type of battery capacity, type of battery technology, type of voltage, type of EV class, type of EV technology, by type of brands, by battery type
- Competitive Scenario of the Electric Vehicles Industry
- Issues and Challenges in Electric Vehicles Market
- Trends and Developments in the Electric Vehicles Industry
- Porter’s Five Forces analysis of the Electric Vehicles Industry
- Growth Drivers of Electric Vehicles Industry
- Challenges and Restraints in the Electric Vehicles Industry
- Government Rules and Regulations in the Electric Vehicles Industry
- Impact of Covid-19 and Government Regulations on Electric Vehicles Industry
- Future Market Size of Electric Vehicles Industry by Transaction Value and Sales Volume
- Future Market Segmentation of Electric Vehicles Industry by type of EV, type of electric 2 wheelers, type of battery capacity, type of battery technology, type of voltage, type of EV class, type of EV technology, by type of brands, by battery type
- Industry Speaks
- Analyst Recommendations
- Research Methodology
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