Malaysia Tops ASEAN In EV Growth at 142% – Are We Ready For Further Growth?

According to Maybank Investment Bank (Maybank IB), Malaysia, Indonesia, and Vietnam are experiencing a rise in electric vehicle (EV) uptake, while Thailand's market shows mixed results.

Maybank IB recently highlighted that supportive regulations, the emergence of local brands, and the entry of Chinese carmakers are key factors driving the increase in sales.

It also reported that ASEAN companies prefer to collaborate with Chinese manufacturers for both production and sales, as well as those involved in the battery value chain.

EV sales in the ASEAN region have shown significant growth from a low base in the first half of 2024 (1H 2024). Malaysia saw a rise of 142% year-on-year (YOY) in EV registrations, reaching 10,663 BEVs.

Meanwhile, Indonesia reported a 104% rise, with sales hitting 11,943 units. Singapore experienced a remarkable 218% YOY jump, with 6,019 EVs sold, surpassing its 2023 figures. Thailand however reported a strong start in January 2024 however is currently facing an oversupply issue.

Globally, EV sales grew by 24%, reaching 6.7 million units in 1H 2024, accounting for 21% of total car sales. However, studies show that the growth rate for fully electric vehicles has slowed to 13.9% YOY, as demand shifts to plug-in hybrid sales, which surged by 59% YOY.

The exponential growth in hybrid sales is attributed to market saturation, the expiration of EV subsidies in Europe, challenges in the US market, insufficient charging infrastructure, and concerns about driving range.

In Malaysia, despite the significant growth in EV uptake fueled by relaxed government taxation policies coupled by new brands and models being launched at a rapid pace, we at CariCarz.com feel this momentum will face an uphill battle soon enough if the EV charging network is not equally grown in proportion.

Currently, only 2,606 EV charging bays (EVCB) are available in the country although the target is to have 10,000 EVCB by 2025. The real impact of this lack of EVCBs will be felt soon enough if not addressed fast when Proton launches its first EV, the e.MAS at the end of the year followed by Perodua next year.

Additionally, according to Maybank IB, the recent tariff increases on China-made cars in the US and Europe are further expected to impact the market.

Source: BERNAMA