Electric Vehicles Industry is expected to increase EV sales volume from at a CAGR of ~6% between 2021 and 2026

Ken Research

• Increasing government push is likely to boost sales of Electric Vehicles due to exemption of taxes and duties.
• Lack of market leaders and ease of entry will act a positive reinforcement for emergence of newer homegrown EV manufacturing companies.
• Increasing technological advancement and emergence of Electric Mobility-as-a-Service (EMaaS) will be witness in the EV space

GURUGRAM, India, Aug. 9, 2022 /PRNewswire/ --

Increasing Government Support and Initiatives

The Malaysian government, had announced during Budget 2022 that battery electric vehicles (BEVs) will be exempted from both import and excise tax until 2023 for fully-imported vehicles (CBU) and 2025 for locally-assembled (CKD) models. The government is also giving tax income exemption for individuals of up to RM2,500 on the cost of purchase, installation, rent, hire purchase as well as subscription fees for electric vehicle charging facilities. The government has set the goal of making Malaysia a significant participant in the regional electric mobility market, and aims for 100,000 EVs to be on the road in the country by 2030, along with 2,000 electric buses and 125,000 charging stations.

Ease of Market Entry

There are few electric 2-wheeler and 4-wheeler brands in Malaysia. A new company entering the market can easily establish itself in the market with a better business model and strategy. Companies have incentives to enter the industry, as it is still at a nascent stage and is expected to grow. For example, Honda plans to launch four electric two-wheelers by 2024.

Increasing Technological Advancements

The major reason for the affordable prices of electric scooters and bikes is the advancement in battery technology. The decline in electric vehicle battery cost has an overall impact on the cost of an electric vehicle. OEMs are investing capital in research and development to further increase the efficiency of the electric battery along with the reducing their cost. Battery Swapping Technology is pioneering Electric Mobility-as-a-Service (EMaaS) in Malaysia, by developing Smart Swap – a game-changing turnkey solution for a battery-swapping infrastructure for Electric Motorcycles.