Malaysia Electric Vehicle Market 2022-2027

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    Published- July 2022

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    MALAYSIA ELECTRIC VEHICLE MARKET

     

    KEY FINDINGS

    1. In 2021, The Malaysian EV market reported sales volumes of 7,592 units and generated revenue of $xx Million and the market is estimated with a CAGR of 16 percent, to reach an overall market value of $xx Million by 2027 from 2022.
    2. As the Budget 2022, introduced incentives such as SST (Sales and Services Tax) reductions and Duty (Import and Excise) exemptions, thus the sales volumes are expected to rise rapidly till 2025.
    3. The Passenger cars segment in Vehicle type accounts for almost xx% of the total volumes in 2021.
    4. The PHEV segment in EV type accounts for almost 60% of the total volumes in 2021.
    5. Currently, Malaysia has around 600 charging stations and the Malaysian government has plans to set up 10,000 charging stations for electric vehicles in Malaysia by 2025 under the Low Carbon Mobility Blueprint (LCMB) 2021-2030.
    6. The Domestic production of electric Two wheelers and buses are being done in Malaysia, but those companies don’t concentrate much in the region and rather sell to foreign clients, again leading to limited variety in the market
    7. In 2021, Top 5 players sold volumes of 7,060 which accounted for xx% of the overall market volume.
    8. The major players in the market are Volvo, BMW, Toyota and Mercedes-Benz and Honda, out of which Volvo is at the top with ~xx%, followed by BMW and Toyota at second position with ~xx%.

     

    INTRODUCTION

    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.

     

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    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.

     

    GE and EV World Pte Ltd (“EV World”) have announced a collaboration on technology development and strategic efforts to assist the rollout of electric cars (“EVs”) in Malaysia and Singapore.

     

    Both firms have signed a Memorandum of Understanding (“MoU”) under which they would work on developing electric vehicle technologies for commercial application and deployment in Malaysia and Singapore.

     

    Recognizing the potential of electric vehicles to revolutionise transportation, GE has been working on a plan for an EV Infrastructure Framework in Malaysia with both governmental and private sector entities.

     

     GE’s partnership with EV World, a collaborative research and development (“R&D”) centre of excellence for electric vehicle technology, would allow the two companies to work together to bring commercial EV applications to Malaysia and the region.

     

    To know more about Malaysia EV Charger Market , read our report

     

    Buses have an average range of 275km, where BYD K9 and SKSBus have a range of 250 km and Kuching’s buses have a bit higher range of 300km on a single charge.

     

    A total of 25 units have been sold till now out of which 15 were bought by Sunway’s Bus Rapid Transit (BRT) and another project supplied 10 units for Putra Nevo EV bus.

     

    The major growth driver for the two wheeler segment is the use of motorcycles and scooters for commercial purposes such as last mile delivery, patrolling and other applications. 

     

    MALAYSIA ELECTRIC VEHICLE MARKET NEW ACQUISITION

     

    The business that runs the ParkEasy mobile app, Pixelbyte, has purchased a 50% stake from Shell Malaysia. The software enables speedy parking for motorists in malls and other retail spaces, and it is the first service in the nation to provide a reserved slot for EV Charging.

     

    The Powering Progress strategy’s cornerstones are the decarbonization of mobility and the facilitation of better customer services through digital innovation. The business plans to invest in projects that will enable it to better serve its consumers as a result of the energy transition and the demands of modern living.

     

    They appreciate the chance to collaborate with a fledgling start-up in Malaysia and are confident that their combined strengths will enable them to create better mobility goods and services for their clients.

     

    The company has expanded its business over the past three years from a parking reservation app to other services like the selling of its unique smart parking solutions and electric vehicle charging bay management systems.

     

    This will be Shell’s first investment in a Malaysian tech startup, giving the oil major a direct route to a regional parking and e-mobility platform. Despite the takeover, ParkEasy will carry on under its current name and management.

     

    MALAYSIA ELECTRIC VEHICLE MARKET SEGMENT

     

    By Technology

    • Hybrid Electric Vehicles
    • Plug-In Hybrid Electric Vehicles
    • Battery Electric Vehicles

     

    By Vehicle Type

    • Passenger Vehicles
    • Commercial Vehicles
    • Two & Three Wheelers

     

    By Battery Capacity

    • <10kWh
    • 10-50 kWh
    • >50kWh

     

    By Range

    • <75km
    • 75-200km
    • >200km

     

    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.

     

    OEM STRATEGY FOR MALAYSIAN EV MARKET

    In March 2022, Volvo Malaysia announced that it will assemble its first electric vehicles (EV) from completely knocked-down units at its factory in Shah Alam.

     

    Volvo Malaysia is ready to implement its global plan for a fully electric line-up by 2030, starting with the launch of the XC40 Recharge Pure Electric model.

     

    In July 2021, UMW Toyota Motor (UMWT) announced that it will invest a further RM270 million into expanding its current manufacturing operations and facilities. 

     

    This amount includes, amongst others, the introduction of a “new and technologically-advanced generation of HEVs.

     

    The company announced an EV strategy that will result in 15 new full EVs released by 2025. That will be part of 70 electrified vehicle models by 2025.

     

    Mercedes has made a total of MYR 1 billion investment in the production, sales, training and distribution of Mercedes-Benz vehicles reaffirms Mercedes-Benz Malaysia’s (MBM) commitment to the Malaysian market till date.

     

    Ho Wah Genting Bhd announced plans to introduce their first full-electric vehicle from Seiyong Motor for the Malaysian market.

     

    In December 2021, The Ora Haomao or Good Cat was previewed at the Bumiputera Development Action 2030 convention. 

     

    It was officially unveiled in 2022, the Ora Good Cat will be distributed by Go Auto.

     

    Chery in Malaysia, will be mainly concentrating on their SUVs, the company has indicated that it would introduce EV, the EQ1.

     

     

    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:

    1. Development of a Next Generation Vehicles (NxGV) Technology Ecosystem.
    2. Expansion of the Mobility-as-a-Service (MaaS) Sector.
    3. Supporting the domestic automotive industry to cope up with IR4.0.
    4. Ensuring that the overall ecosystem benefitted from the NxGV Ecosystem.
    5. 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.

     

    COMPETITIVE LANDSCAPE

     

    With Major automobile OEMs such as Proton and Perodua, yet to enter the EV market, there are not many budget EV options.

     

    Very few are available, from OEMs such as Nissan, Renault, Hyundai and Honda, and even less pure EVs. Thus the sales is also not as high as its ASEAN neighbours, Thailand and Indonesia. 

     

    In September 2021, Mercedes-Benz Malaysia is looking into local assembly (CKD- Completely Knocked Down) of electric vehicle (EV) models at its Pekan plant, as well as upgrading its production network and supply chain

     

    Eclimo till date has generated a revenue of around $4M in total across all of its operations and with its expansion plans is expected to contribute hugely.

     

    Treeletrik also investing in its infrastructure to produce domestic EVs, to be sold in Indonesia, might also sell locally which would give more options for the consumers. 

     

    MALAYSIA EV MARKET COMPANY PROFILE

     

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2022-2027
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2022-2027
    19 Market Segmentation, Dynamics and Forecast by Application, 2022-2027
    20 Market Segmentation, Dynamics and Forecast by End use, 2022-2027
    21 Product installation rate by OEM, 2022
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2022
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix

     

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