MALAYSIA ELECTRIC VEHICLE MARKET
Malaysia is located in Southeast Asia, one of the developing nations. In the past its economy was strongly supported by its natural resources. As time passed its economy expanded towards tourism, science , commerce and other sectors as well. Malaysia is the only federal country in Southeast Asia; they are known to make a neutral relation and peace with their neighboring country and rest of the world.
MALAYSIA ELECTRIC VEHICLE MARKET DYNAMICS
Malaysia is emerging as a new industrialized market economy. The GDP growth rate of Malaysia is one of the most competitive in the world; in 2014-2015 it had a growth rate of 6.5% annually which was 20th in the world surpassing countries like New Zealand, Australia. Malaysia is one of the largest producers of tin, rubber in the world.
According to ERIA (Economic Research Institute for ASEAN and South Asia), to support for EVs market the country has launched National Green Technology policy in 2009, they also formulated the Greentech Malaysia in which they have mentioned to that until 2020; 100,000 Passenger EVs, 2000 bus EVs, 100,000 Electric motorcycle or scooter will be available on national roads.
Reaching this goal in Malaysia came out to be a little difficult as the said goal is not achieved till now. The reason might be that the Malaysian government is not providing an attractive incentive and subsidy plan for EV manufacturers and buyers. Some leading businessmen in Malaysia are criticizing the government for not taking enough initiative to promote the EV sector.
In spite of having an advantage as a shipping hub and availability of resources, Malaysia still has limited manufacturing industry, the standard workforce wages are higher than many southasian countries is an disadvantage as well. However the government of Malaysia is trying their best to introduce the new model and policies to make a significant participant in the development of EVs in their countries in near future.
MALAYSIA ELECTRIC VEHICLE MARKET SEGMENT
- Hybrid Electric Vehicles
- Plug-In Electric Vehicles
- Battery Electric Vehicles
By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
- Two Wheelers
- Series Hybrid
- Parallel Hybrid
- Combined Hybrid
By Vehicle drive type
- Front Wheel Drive
- Rear Wheel Drive
- All-Wheel Drive
EFFECT OF COVID ON MALAYSIA ELECTRIC VEHICLE
COVID has affected the market all over the world. Main sector responsible for the GDP of the country has a severe impact. The report says the continuous contraction of the economy in the 4th quarter as well. The production of finished goods shortage of material and equipment, labor. In 2020, Malaysia’s Total Industry Volume has dropped to 12.4% overall production and sales of vehicles have also decreased. The country is trying their best to overcome the crisis.
MALAYSIA ELECTRIC VEHICLE MARKET SIZE AND FORECAST
The Malaysia Electric Vehicle market size is estimated to be US $ XX Billion in 2020 and the growth rate of XX% by the year 2026. Malaysia has many industries that act as an ancillary for the international companies.
Some companies in Malaysia have started making prototypes for future electric vehicles. Companies like Proton. Their model named Proton Iriz EV displayed the first ever locally manufactured EV in 2015 International Greentech and Eco Products Exhibition and Conference Malaysia. Companies like Perodua are also conducting Research on electric and hybrid vehicles for the near future.
MGTC is playing a key role in providing the charging station solution throughout Malaysia, companies like Oyika, a Singapore based startup is providing the battery swap facility for the electric motorcycle. Startups like MyKar have signed the Memorandum of agreement with the Malaysia Automotive, Robotics and IoT Institute (MARii) for completing the process of testing and designing of electric cars for manufacturing purposes.
A large chunk of the population in Malaysia is not interested in buying electric vehicles because of the inefficient charging facility or maintenance cost of vehicles or the cost of electric vehicles. As of the ending of 2020, only 4 electric vehicles were sold in Malaysia. Currently, almost 300 charging stations are available in Malaysia concentrated near to Klang Valley.
KEY PLAYERS OF MALAYSIA ELECTRIC VEHICLES
Automotive sector contributes almost 4% to Malaysian GDP. They have more than 25 Vehicle producers and more than 600 component manufacturers, and give employment to a large number of Malaysian citizens.
Proton is an automotive manufacturer founded in 1983, focuses on design and manufacturing of automobiles. Over the period of time they had a partnership with many international companies for the growth and development of organization and country like Mitsubishi, Honda, Suzuki, Geely, Youngman, etc… which helped them out for continuous development and know the international market requirement in a better manner.
Perodua is an automotive manufacturer founded in 1992, focuses on design, development, distribution and sales of car manufacturers. It is the largest car manufacturer in Malaysia. In the starting phase they had focused on manufacturing of mini-car for their potential customers. In recent news, it is seen that the company is discussing its future plan with its partner Daihatsu regarding electrification.
Eclimo is a Malaysian Electric Vehicle Startup founded in 2008, HQ in Penang Island. They are focused on contributing towards the sustainable development of the country and world, manufacturing of electric motorcycles and lithium-ion batteries.
CHALLENGES IN ADOPTION OF ELECTRIC VEHICLE MARKET IN MALAYSIA
National Automotive Policy 2020, released in late February 2020 with 5 objectives:
- Development of a Next Generation Vehicles (NxGV) Technology Ecosystem.
- Expansion of the Mobility-as-a-Service (MaaS) Sector.
- Supporting the domestic automotive industry to cope up with IR4.0.
- Ensuring that the overall ecosystem benefitted from the NxGV Ecosystem.
- Reducing carbon emission
In the above objective they did not describe the exact details about the expansion of EV in the country. It is not clearly mentioned about the incentives and subsidies for the manufacturer and for customers as well, due to this the government is not able to encourage the citizens to move towards EV.