More Incentives For EVs To Accelerate Its Adoption In Malaysia

The New Industrial Master Plan (NIMP 2030) and battery electric vehicle (BEV) programme are expected to provide additional incentives to accelerate the adoption of electric vehicles (EVs) in Malaysia, The Star reported.

This is because the EV market has growth potential as sales remain low, according to UOB Kay Hian (UOBKH) Research, which predicts that year-to-date market share will increase to 0.7% this year from 0.4% .

“EV brands in Malaysia include BYD, Tesla, Great Wall Motor Co Ltd and Neta, and we expect more brands to enter the Malaysian market in the near future,” said UOBKH Research in a recent report on the auto sector.

However, the research firm warns that high EV prices, as well as insufficient charging infrastructure, may partially impede demand, while adding that Perodua and Proton have begun their journey towards electrification by introducing hybrid products, which will drive more positive growth in Malaysia's EV sector.
Though the increase in EVs and charging stations is encouraging, it will need to be accompanied by policies and programmes from the government that will strengthen the overall EV ecosystem and support decarbonization efforts, it added.

UOBKH Research is also optimistic on Sime Darby Bhd's acquisition of Permodalan Nasional Bhd's (PNB) 61.2% stake in UMW Holdings Bhd, claiming that the deal will provide Sime Darby with a broader brand portfolio ranging from entry-level to luxury brands, allowing the group to capture a larger market share in Malaysia.