Malaysia Electric Vehicle Market Outlook to 2026: Ken Research
New Delhi ,
The publication titled “Malaysia Electric Vehicle Market Outlook to 2026: Driven by government initiatives along with the need to curb vehicular emissions, and increasing charging infrastructure” provides a comprehensive analysis of the electric vehicles industry by analyzing historical statistics and corresponding developments in the electric vehicles market. The market growth declined during COVID as manufacturing activities were on halt and the supply chain got disrupted. Given the consolidated structure in the electric vehicle industry, analysts have elaborated on competitive landscape of major electric 2-wheelers and 4-wheelers player on the basis of models launched, product prices, technology type and other operational parameters. The report also covers a snapshot on player’s business model, value chain analysis, growth drivers, Porters 5 forces analysis, impact of COVID-19 and factors governing the future outlook of industry. The report also provides comprehensive insight on the market size and segmentation of the industry. The report focuses on Electric Vehicle Market segmentation by Type of Electric Vehicle, Type of Battery Capacity, Type of Battery Technology, Type of Voltage used, Type of Battery used, Type of Brand, and by Type of EV Class. The report highlights the pain points of the electric vehicles industry along with detailed company profiles of major electric 2-wheeler and 4-wheeler brands. The report concludes with projections for future industry market size, market segmentations and analyst take on future market scenario.
Malaysia ElectricVehicleMarket Overview:The electric vehicle market in Malaysia recorded a negative growth 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.
Malaysia Electric Vehicle Market Segmentation
By Type of Electric Vehicle (4-Wheeler and 2-Wheeler): In 2021, Electric 4-Wheelers dominated the Electric Vehicle Market in Malaysia. Malaysia wants to encourage people to adopt EVs and other fuel-efficient vehicles.
By Type of Electric two-wheeler (e-scooter and e-motorcycle):E-Motorcycle dominated the Electric two-wheeler market in Malaysia 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. 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): Non Removable Battery dominated the Electric two-wheeler market in Malaysia in 2021. The chassis of EVs with fixed battery packs are relatively simple, and are easy to manufacture.
By Type of E2V Voltage Type (24V, 36V, 48V, 60V, 72V): Electric 2-Wheelers using a voltage of 48V dominated the Electric 2-Wheeler market in Malaysia. A battery of voltage 48V lasts between 3 and 5 years if it is well maintained.
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 Brands (Mercedes Benz, BMW, Honda, Volvo, Hyundai, and Others): A large share of the revenue is captured alone by Mercedes Benz in Malaysia in 2021. BMW and Honda were also among popular EV brands in Malaysia in 2021.
By Type of E4V Technology (BEV, PHEV, and HEV): Hybrid Electric Vehicles (HEV) dominated the Electric Vehicle Market in Malaysia. Brands who offered HEV are Honda, Nissan, Audi, and Toyota.
By Type of E4V Class (Mid-priced (less than 300,000) and Luxury (more than 300,000)): In Malaysia, Luxury segment which is priced above 300,000 dominated the Electric 4-Wheeler market. Examples include BMW, Porsche, Tesla, Mercedes, etc.
Competitive Landscape in Malaysia’s Electric Vehicle Industry
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.
MalaysiaElectric Vehicle Industry Future Outlook and Projections
Electric vehicle market in Malaysia is estimated to expand 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.