Another strong year for EVs in Malaysia

Another strong year for EVs in Malaysia

20 Jan 2025

MALAYSIA’s electric vehicle (EV) market surged nearly 80 per cent year-on-year (YoY) to more than 28,000 units in 2024, with China’s BYD, Tesla and BMW emerging as the top three brands. 

Analysts expect another strong year for the EV segment in 2025 driven by new model launches particularly from national car makers Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd.

Thriving ‘Green’ Vehicles

According to the Road Transport Department data, total EV registrations in the country  expanded 79 per cent to 28,048 units, representing 3.3 per cent market penetration last year.

The growth was primarily driven by the influx of multiple new EV models and the entry of new players into the Malaysian market, said CIMB Securities analyst Mohd Shanaz Noor Azam, who estimates that the Malaysian automotive market now boasts over 27 EV marques.

BYD, Mohd Shanaz said, leads the market with nearly 31 per cent share, fuelled by the introduction of three new models: the Seal, M6, and Sealion.

Tesla follows with an 18 per cent market share, driven mainly by its flagship models, the Model 3 and Model Y. Meanwhile, BMW ranks third with a seven per cent market share.

“However, BMW’s EV registrations dropped 39 per cent YoY to 1,975 units in 2024, primarily due to increasing competition in the EV space.”

Proton unveiled its first EV, the eMAS 7, in December 2024, receiving over 2,500 bookings within weeks of its launch. Perodua is set to debut its flagship EV in the sub-RM100,000 segment by the fourth quarter of 2025.

“The government’s policy of setting a minimum average selling price of RM100,000 for nonnational EVs is expected to provide a competitive edge for national brands,” Mohd Shanaz said.

Although EVs from national brands are likely to boost EV penetration this year, CIMB Securities expects rising competition within the segment, especially from Chinese players as duty exemptions for imported EV models are set to end in 2026, after which domestic assembly will take precedence.

Easing Industry Sales

The EV may continue to thrive but the same cannot be said about the overall industry sales.

CIMB Securities expects a total industry volume (TIV) of 755,000 units for 2025. This will be equal to a seven per cent YoY decline over the estimated 814,000 units sold in 2024.

The firm attributed this to potential headwinds, including the possible removal of the RON95 petrol subsidy in mid-2025 and a likely revision of the open market value (OMV) calculation method.

“Despite these challenges, we anticipate resilient demand within the sub-RM100,000 segment, which remains dominated by national brands and select entry-level models from Japanese marques,” Mohd Shanaz said.

“In 2024, we estimate that sub-RM100,000 models accounted for at least 73 per cent of Malaysian TIV, with national brands commanding over 80 per cent of this segment, while Japanese and Chinese marques represented the remaining 20 per cent,” he added.

The firm expects demand for sub-RM100,000 models to remain robust in 2025, supported by first-time car buyers and an accommodative interest rate environment maintained by Bank Negara Malaysia.

Additionally, the government’s plans to retain fuel subsidies for 85 per cent of RON95 users, as outlined in 2025 Budget, are expected to maintain affordability for the mass-market segment. 

“As a result, we expect national brands to maintain their dominance, capturing a projected 64.5 per cent market share, compared with 35.5 per cent for non-national brands in 2025,” Mohd Shanaz said.

Source: NST