25 May 2022

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.