Market Insights Mobility Electric Vehicles

Battery Electric Vehicles - Malaysia

Malaysia

The Battery Electric Vehicles market (BEV) segment in Malaysia is anticipated to witness a significant growth in revenue, projected to reach US$783.1m in 2024.
This projection indicates a positive trend, with an expected annual growth rate of 6.99% from 2024 to 2029.
Consequently, the market volume is estimated to reach US$1,098.0m by 2029.
In line with this growth, the unit sales of Battery Electric Vehicles market in Malaysia are expected to reach 16.30k vehicles by 2029.
This showcases the increasing demand and adoption of BEVs among consumers in the country.
Furthermore, the volume weighted average price of BEVs in Malaysia is expected to amount to US$67.5k in 2024.
This metric reflects the average price at which BEVs are sold in the market, taking into account the varying prices of different models and brands.
When considering the international market, it is noteworthy that China is projected to generate the highest revenue in the BEV segment, with an estimated US$210,800m in 2024.
This indicates the dominance of the Chinese market and the significant role it plays in the global BEV industry.
Malaysia is seeing a surge in the adoption of Battery Electric Vehicles, driven by government incentives and increasing awareness of environmental sustainability.

Key regions: United Kingdom, Japan, Netherlands, France, United States

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Analyst Opinion

The Battery Electric Vehicles market in Malaysia is experiencing steady growth due to increasing customer preferences for environmentally friendly and sustainable transportation options.

Customer preferences: Customers in Malaysia are increasingly concerned about the environmental impact of traditional gasoline-powered vehicles and are seeking alternative options that are more sustainable. Battery Electric Vehicles (BEVs) offer a clean and efficient mode of transportation, as they produce zero emissions and significantly reduce carbon footprints. This aligns with the growing global trend towards greener and more sustainable practices.

Trends in the market: The Malaysian government has been actively promoting the adoption of BEVs through various initiatives and incentives. These include tax exemptions and rebates, as well as the development of charging infrastructure across the country. These measures have helped to increase consumer confidence and encourage the purchase of BEVs. In addition, there has been a rise in the availability and variety of BEV models in the Malaysian market. Major automakers have introduced their electric vehicle models, offering a range of options to suit different customer preferences and budgets. This has made BEVs more accessible and appealing to a wider audience.

Local special circumstances: One of the unique challenges in the Malaysian market is the availability and accessibility of charging infrastructure. While the government has made efforts to develop a network of charging stations, there is still a need for further expansion to ensure convenient and widespread access for BEV owners. This is particularly important for customers who live in apartments or condominiums, where access to private charging facilities may be limited.

Underlying macroeconomic factors: The Malaysian government's commitment to reducing carbon emissions and promoting sustainable development is a key driver for the growth of the BEV market. In addition, the country's strong economic growth and rising middle-class population have increased disposable incomes and purchasing power, making BEVs a viable option for many consumers. Furthermore, the global shift towards electric mobility and the increasing availability of advanced battery technology have contributed to the growth of the BEV market in Malaysia. As battery technology continues to improve, BEVs are becoming more affordable, with longer driving ranges and faster charging times. This has further boosted consumer confidence and interest in adopting electric vehicles. In conclusion, the Battery Electric Vehicles market in Malaysia is growing steadily as customers increasingly prioritize sustainability and environmentally friendly transportation options. The government's support through incentives and infrastructure development, along with the availability of a wider range of BEV models, has contributed to the market's positive trajectory. However, further expansion of charging infrastructure and continued advancements in battery technology will be crucial for the sustained growth of the BEV market in Malaysia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).