Transition to green mobility ambitions intact
PETALING JAYA: Sales of all types of electrified vehicles (xEVs) have been improving in recent years, signalling an imminent transition towards the country’s green mobility ambitions.

According to UOB Kay Hian (UOBKH) Research, the market share of xEVs, which are vehicles in the hybrid and battery-electric vehicle (BEV) segment, has grown from 2% in 2021 to 5% in 2023.

The objective is to have 20% of total industry volume (TIV) by 2030, 50% by 2040 and 80% by 2050. Buses will have 20% of active permits (10,000 units) and motorcycles will have 15% of TIV.

“Considering the current price point, which cannot be lower than RM100,000, BYD dominates the market with a 60% share, followed by BMW and Porsche with 20% and 6%, respectively,” said the research firm.

Comparing price points, UOBKH Research said the mainstream class, with products priced between RM100,000 and RM199,999, captured 48% of the market share. The premium class (products priced between RM200,000 and RM399,999) garnered about 40% of the market share.

“We anticipate Sime Darby Bhd to stand as a key beneficiary, riding this positive trend, as both brands, BYD and BMW, fall under the group’s umbrella.

“With the addition of new brands like Perodua and Toyota, we anticipate further opportunities opening up in the electric vehicle (EV) mass-market space in the near term.

“The trend should continue with improvements in price, speed and range of the products moving forward,” added the research firm.

It expects national carmakers to fuel Malaysia’s EV trend with Perodua and Proton having set a target to introduce their own BEV products by 2025, priced affordably below RM100,000.

“Given the extensive market opportunities with lower price points, we believe that having an adequate number of public EV charging stations is crucial to promoting widespread EV use.

“The objective is to achieve 10,000 units of charging facilities by 2025 (current count at 1,434 units).”

Touching on the bigger picture, the research firm said current policies address not only the demand side but also the supply side, including manufacturing companies.

Major incentives, including pioneer status, investment tax allowances and import duty exemptions, are offered to manufacturing companies to attract investment.

Budget incentives from 2023 and 2024 further incentivise EV adoption, including cash rebates, tax relief and import duty exemptions.

“The National Automotive Policy 2020 stands out as a cornerstone policy, encompassing the comprehensive development of industry capabilities and aiming to propel the EV industry forward with a targeted contribution of RM104.2bil or 4% to gross domestic product over the next decade.”

It said anticipated opportunities span downstream operators, including original equipment manufacturer-brands like Bermaz Auto Bhd and Sime Darby.
Auto,MalaysiaEV,xEVMarket,GreenMobility,SimeDarby,BYD,BMW,Perodua,Proton,ChargingInfrastructure,NationalAutomotivePolicy
Sales of all types of electrified vehicles (xEVs) have been improving in recent years, signalling an imminent transition towards the country’s green mobility ambitions.