Local touch: Tengku Zafrul at the launch of the all-new Gen EV smart #1. He says the mass production of Perodua’s EV is expected to start at end-2025.
It will likely continue to be this way at least until Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd or Perodua launch their own EVs and the government eventually opens this space up to more competition, which may then drive further growth in EV sales.This may provide a hint of what may be to come for the EV industry locally and how this might challenge and eventually alter the outlook for ICE vehicles and its supply chain ecosystem in Malaysia.
Of late, the industry in China has seen fierce price wars, with recent EV cars being priced from as low as US$9,700 for the new BYD Seagull. Xiaomi recently launched a sport utility vehicle in China, code-named SU7, at a starting price of RM141,525. The SU7, reportedly looks and feels similar to a luxury SUV but at half the price, with EV technology and smart features installed; and it has already attracted a long waiting line of buyers in China, demonstrating how competitive this space will potentially get, moving forward
Norway is the country with the highest share of EV sales in the world now, closely followed by other European countries such as Iceland at 50% in 2023 and Sweden at 51.8% in February 2024. Case in point is the United Kingdom where demand for ICE vehicles has risen and EV demand has fallen after incentives for drivers buying new EVs were scrapped in 2022.
“Malaysians can look forward to a future with more affordable BEVs, reflecting evolving market dynamics. Current pricing strategies by industry players strike a balance between affordability and essential factors such as acceptable range and car specifications, performance and ecosystem support,” Pro-Net’s chief executive officer Zhang Qiang tells StarBizWeek.
But he also notes that the success of Malaysia’s BEV ambitions hinges on factors like affordability, range and charging availability. This is in line with Perodua’s appointment as the lead in production of affordable EVs under the New Industrial Master Plan 2030.
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