May 25, 2022 8:13AM

The Future of EV in Malaysia

The impact of Climate Change has been a global issue for the past few years. Citizens around the world, including Malaysians, are becoming more aware and many are taking action to stop it from becoming worse. We have seen an increased interest in some areas such as recycling and reducing carbon footprint in Malaysia to help manage climate issues.

Perhaps it is because of this green behaviour that we see an increased interest in the adoption of Electric vehicles (EV) in Malaysia. Coupled with the recent fuel hike and increase cost of living, more Malaysians are now looking for more cost-effective and environmentally friendly forms of transportation.

With the younger generations (20-28) especially, we are seeing positive changes in how they commute, with many living in cities such as Kuala Lumpur now using electric scooters to travel short distances to LRT Stations and universities. These are positive signs of lifestyle changes which will add to the growth of EV ownership in the coming years.

Vodus Research embarked on an Electric vehicle study covering 22,793 Malaysians with the intention to help companies and brands understand the attitude of the local market towards Electric vehicles and more importantly identify the key motivations and barriers in order to grow the EV business in this region.

Although still at its infancy stage, as less than 10% of Malaysians currently own an electric vehicle, there’s quite good awareness of EV availability in the market with 4 out of 10 aware they can get an EV in Malaysia.

When asked about the likelihood of considering buying an electric vehicle, 1 in 4 of those surveyed will consider buying an EV in future, indicating strong potential demand for EV. With the recent EV launches by auto brands such as Mercedes, BMW, Volvo, Hyundai, we will definitely see an increase in the awareness and purchase level soon.

As such, it is important to understand the triggers and barriers towards EVs for auto brands to address the right topics and optimize their interest in EV.

The study reveals that the Top 5 motivations to consider buying an EV are:

•  Cost efficiency
•  Size/Weight of vehicle
•  Performance Looks and designs
•   Eco-Friendliness

As for barriers/concerns towards buying an EV, the top factors are

• High electricity cost to charge
• Unsure about the maintenance cost
• Unclear engine performance of the EV and lack of easy accessibility to charging stations around Malaysia.

Moving ahead, what should Auto brands focus on and what should Malaysians consider when buying an electric vehicle?

EV battery life is key as it is the core of the vehicle and given there are still limited charging facilities and stations, this can be a differentiating point for an EV brand – the longer the battery lasts, the further it can go in one full charge, the less Malaysian will have to worry about it running out of battery on the road.

Another important factor is the lifespan of the battery and the cost of replacements. With the long-term cost of repairs and availability of parts key factors for many. This makes warranties and aftersales support key considerations for Auto brands when convincing Malaysians that electric vehicle ownership can be achieved within their budget.

The other feature the Auto sector and other players can help to address will be the availability and accessibility of charging EVs. If there are more available charging stations across the country, then it will promote the adoption of EVs as well. Hence, there’s an opportunity for companies to offer such services and package them attractively.

We are already seeing increased awareness in this area as more and more property developers are installing EV charging points for the residents in the carparks of condos.

Lastly, it is important to know the various sources Malaysians are relying on to get information and do their research on EV.

Social Media and Websites are the key platforms for information. Hence, it is important for Auto brands to ensure there’s a clear and easy way for Malaysian to navigate and gather important info to start their journey towards EV ownership.

It’s also important to consider that a lot of the awareness and push for EV’s in countries such as the UK and US, has come through government awareness campaigns. In the UK there are both yearly vehicle tax and congestion charge exceptions for electric vehicles.

So, when you consider the cost of the congestion charge in London alone is £15 (RM82.00) per day, this makes electric vehicle ownership a key factor in reducing the cost of living for those commuting to work each day.

The launch of such exceptions and incentives in Malaysia would sure be a major driving force in the adoption of electric vehicles in the future.

Download the full report below for free to find out more about how Malaysians feel towards EV and how Auto brands can optimize the interest and grow the EV business in Malaysia.