Power up: People walking past two EVs near a charging station at Publika, Kuala Lumpur. — IZZRAFIQ ALIAS/The Star
PETALING JAYA: Sales of electric vehicles (EVs) in the country have more than doubled in the first six months of this year to over 10,000 units, compared with the same period last year.
Based on figures by the Statistics Department, 10,663 EVs were sold as of June 30, compared with 4,409 EVs in the same period last year. A total of 13,301 EVs were sold in all of last year.Among the reasons for the increase were the competitive prices offered by certain EV manufacturers recently, along with several incentives announced by the government.
Based on the data, BYD continues to dominate the EV market here with the number of registered EVs increasing from 1,836 units last year to 4,368 units in the first six months of this year, or a 137.9% jump.
While Tesla may be lagging behind BYD, sales of Tesla EVs skyrocketed by nearly 17 times, from 174 units for 2023 to 3,079 units in the first six months of 2024.
Sales of other brands in the six months of this year include BMW (807), Chery (406), Roewe (216), Hyundai (147), Great Wall (272), Mercedes-Benz (323), Smart (282) and Neta (100).Housing and Local Government Minister Nga Kor Ming
The increase in the sales of certain EV models was noted by Housing and Local Government Minister Nga Kor Ming, who said this may be due to manufacturers slashing prices of certain models by as much as RM8,000, along with government incentives such as lower road tax and special plates for EVs.
However, he acknowledged that the rate of setting up EV charging stations was slow and still behind the target of 10,000 by 2025.
“Almost 3,000 EV charging bays will be set up by the end of this year.
Of these, 1,069 are indoor charging stations and 1,516 are outdoor charging stations, comprising 1,976 AC (alternating current) charging stations and 609 DC (direct current or rapid) charging stations.
Based on the MEVnet map, most of the existing EV charging stations are located in the Klang Valley, Penang, Ipoh and Johor Baru, with an additional 4,019 charging stations proposed for this year.
KUALA LUMPUR, May 27 — It was recently reported that Malaysia’s Electric Vehicle (EV) sales have stagnated as consumers are struggling with the high prices of such vehicles. At the moment, all fully imported (CBU) EVs are exempted from import and excise duties until the end of 2025. However, you won’t find any imported EVs under RM100,000 due to the current policy which is seen as a move to protect the local automotive industry.
So the question is, are fewer people buying EVs in Malaysia? Recently, the Malaysian government’s official open data portal (data.gov.my) has updated its vehicle registration database from the Land Transport Department (LTD) and the actual data provides a different picture. We also get a clearer picture of the most registered EV models and the current trend of EV registrations against other vehicle types in Malaysia.
The latest published dataset for vehicle registrations in Malaysia covers the period from 1st January 2020 until 30th April 2024.
Top 15 EVs in Malaysia. — Picture via X/Thevesh
Top 15 EVs in Malaysia. — Picture via X/Thevesh
Top 15 EV models registered in Malaysia
As illustrated by Thevesh with data obtained from the portal, BYD, Tesla and BMW currently dominate the top 3 spots for the most popular electric vehicles registered in Malaysia between January 2020 to April 2024. BYD Atto 3 takes the top spot with 4,308 vehicles registered (18.7 per cent) followed by the Tesla Model 3 with 2,740 units (11.9 per cent) and BMW iX with 2,543 units (11.0 per cent).
Do note that the registration data covers all vehicles registered with JPJ in Malaysia including grey imported EVs.
Top EV models registered in the first four months of 2024
If we look at 2024 alone (1st January until 30th April), the Tesla Model Y is the most popular EV in Malaysia with 1,138 units registered, while BYD Atto 3 takes the #2 spot with 1,118 units. This is followed closely by their sedan models, the Tesla Model 3 at #3 with 862 units and BYD Seal at #4 with 840 units. Taking fifth place is the BYD Dolphin which is currently the best value for money EV priced from just RM100,000.
Based on sheer numbers alone, more BYD EVs were registered – 2,563 units (Seal, Dolphin and Atto 3) which accounts to 40 per cent of total EVs registered in Malaysia within the first four months of the year. Meanwhile, 2,000 Tesla EVs (Model 3 and Model Y) have been registered which is equivalent to 32 per cent of total EVs registered.
Taking the #6 spot is the Chery Omoda E5 with 244 units registered, followed by Smart #1 with 202 units, GWM Ora (presumably Ora Goodcat) with 145 units, BMW i7 with 121 units and the Porsche Taycan with 112 units.
EV registration (BYD vs BMW vs Tesla) trend in Malaysia. — Picture via X/Thevesh
EV registration (BYD vs BMW vs Tesla) trend in Malaysia. — Picture via X/Thevesh
Tesla to overtake BMW in total EV registrations this year?
In 2023, BYD was the best-selling EV brand in Malaysia with 4,470 registered, followed closely by BMW with 3,237 units registered. Looking at the trend, it appears that Tesla is growing rapidly in Malaysia with the release of its Model 3 and Model Y that are priced from less than RM200,000.
BMW has started to show slower growth for EV registrations this year. Unlike Tesla and BYD where electric SUV models are doing better, BMW’s electrified sedans such as the BMW i7 and i5 are the more popular choice compared to their SUV models such as the BMW iX, iX3 and iX1.
Breakdown of vehicles registered in Malaysia by fuel type. — Picture via X/Thevesh
Breakdown of vehicles registered in Malaysia by fuel type. — Picture via X/Thevesh
Less than 3 per cent of vehicles registered are EVs but it is growing
If we compare the total volume of EVs registered in Malaysia, EVs only represent a mere 1.2 per cent for the period between January 2022 to April 2024. The majority of cars registered in Malaysia are powered by petrol at 88.3 per cent, followed by Green Diesel at 7.4 per cent and Hybrid at 2.5 per cent.
However, if we look at the breakdown on a year-by-year basis, you’ll notice that EV adoption is still increasing steadily.
In 2023, a total of 13,301 out of 832,340 vehicles registered in Malaysia are electric (1.60 per cent). And from 1st January until 30th April 2024, a total of 6,298 out of 275,712 vehicles registered are electric (2.28 per cent).
It is worth highlighting that these total figures also include commercial vehicles and we are also seeing more adoption of EVs for commercial fleets. This includes IKEA, POS Malaysia, DHL and even Maxis.
Malaysia targets EVs to take up 15 per cent TIV by 2030
Malaysia has an ambitious goal for EVs to take up 15 per cent of the total industry volume (TIV) by 2030, 40 per cent by 2040 and 80 per cent by 2050. There are several matters which the government has to look into if they want to drive mass adoptions of EVs and this includes the new road tax structure which has been long overdue. At the moment, road tax for EVs is exempted until 31st December 2025 but potential buyers are wary if the cost of road tax would greatly increase the cost of EV ownership.
In addition, the deployment of EV infrastructure also plays a role in building range confidence among buyers. The government aims to have 10,000 EV charge points by 2025 and they have recently announced that it aims to have 1,500 DC charge points by 2025.
Access to affordable EVs especially the sub-RM100,000 segment is also important to drive EV adoption in Malaysia. The two national carmakers Proton and Perodua have pledged to deliver their first EV by 2025. Proton is expected to launch two EV models soon and they have recently teased a possible new sub-brand for its EV lineup.
How did China become so powerful in just one generation? Some attribute it to adopting a capitalist system, but this isn't the whole story. Others credit China's success to its large population, but India, with a comparable population, didn't achieve similar growth. So what makes China so powerful? Well, this is exactly what we’re going to discover in today’s video...
Warmest welcome: Manoharan (right) presenting souvenirs to passengers of Qingdao Airlines flight QW9893 at the Qingdao Airlines inaugural flight celebration ceremony. — Bernama
KUALA LUMPUR: There has been a surge in the number of Chinese travellers coming to Malaysia following the increase of red-eye flights here from their home country, according to Malaysia Airports Holdings Bhd (MAHB).
Red-eye flights are rising in popularity, with officials reporting a 28% increase of such flights arriving at KL International Airport (KLIA) during the first half of the year compared with the same period last year, with flights from China accounting for 74% of them.
A red-eye flight refers to a flight that departs at night and arrives the next morning.
This increase in nighttime flights is expected to help Malaysia hit its target number of tourists, including five million Chinese visitors.
The 28% increase in flights in the first half of the year translates to an additional 313 flights per month.
“A significant portion of this increase is attributed to flights to and from China, which accounted for 232 extra flights or 74% of the total growth in red-eye flights,” MAHB said.
“The YoY performance for China-specific red-eye flights shows a remarkable increase of 168%, with the number of flights skyrocketing from 138 to 370 per month.
“KLIA also experienced a +20% YoY increase in red-eye departures, with flights to China making up 61% of the additional 171 monthly flights,” it told The Star.
Red-eye flights, characterised by departures after 9pm and arrivals before 5am the following morning, have become pivotal in meeting rising passenger demand and strengthening the airport’s operational capabilities.
MAHB said the considerable increase in red-eye flights, particularly those linked to China, highlights the growing intercontinental travel demand and “reinforces KLIA’s status as a key aviation hub in the region”.
In response to the increasing number of Chinese passengers, KLIA has boosted its efforts to enhance the passenger experience by increasing the number of Mandarin-speaking Airport CARE Ambassadors.
“Currently, KLIA employs 36 Mandarin-speaking ambassadors with nine on duty per shift, a significant improvement from the pre-pandemic period when only four Mandarin-speaking ambassadors were available per shift.
“Our Airport CARE Ambassador team now operates at full capacity 24/7, with a robust force of 280 ambassadors, including Mandarin speakers,” MAHB added.
It said plans are under way to install an additional 10 autogates from the current 10 to improve passenger flow and reduce wait times.
Tourism Malaysia director-general Manoharan Periasamy said red-eye flights have become popular because they allow travellers to have more time at their destination.
The visa-free agreements that Malaysia signed with China and India have made weekend travel more convenient as well, he added.
Manoharan said Tourism Malaysia plans to increase the number of officers at its information desk at the airport to cater to the increase in the number of foreign visitors.
“At least two staff members who can speak English and Mandarin will be at the helpdesk.”
Short-haul flights are those less than three hours in duration, while flights lasting between three and six hours are considered medium-haul flights.
Manoharan said Tourism Malaysia will focus on short-haul and medium-haul countries.
Malaysian Inbound Tourism Association president Mint Leong said red-eye flights are crucial in attracting more Chinese tourists and believes this will significantly contribute to achieving the goal of attracting five million Chinese tourists to Malaysia this year.
“Over 70% of tourists prefer ‘flexible independent travel’ and are likely to choose midnight flights.
“This allows them to save on travel time without needing to take (extra) leave from work and they save on hotel costs,” she said.
China and Europe should not create artificial political conflicts but should instead expand the vast space for economic and trade cooperation. Win-win cooperation helps both sides' companies enhance their competitiveness and make technological achievements more accessible to the public. This is the best way to “de-risk.”
“Focus will now be on the second and third liners including the small mid-cap stocks which have yet to run,” Ng added.
He noted further catalysts could come from a potential US Federal Reserve rate cut which would benefit emerging markets including Malaysia.
“Potentially, the ringgit weakness will diminish, inflation will go down and it will be good for the overall economic sentiment,” Ng said.
Former senior investment banker and seasoned investor Ian Yoong said the country is midway through the data centre investment theme, except for the power sector.
“The uptake of electricity from TNB and other power producers can only go up. Avoid the want-to-be data-centre plays. There is still a lot of value in non-data centre themed small mid-cap stocks,” Yoong said.
“The outperformance of the domestic mega-caps, namely TNB and Telekom Malaysia Bhd, which are the largest data centre owners and operators in Malaysia, will most likely lift the FBM KLCI from the current 1,623 to 2,000 by the end of 2025.
“The confidence and trust in the leadership of the country grows by the day,” Yoong added.
JPMorgan, in its upgrade report, noted that policy reforms, data centre investments and infrastructure buildout have become key tailwinds for Malaysia, in line with its outlook for this year, but they are progressing at a much stronger pace than it had anticipated.
In a TV interview with CNBC, JPMorgan head of Asia-Pacific (ex-Japan/China) Rajiv Batra said there were signs of this happening last year, adding that the quick pace of execution such as subsidy rationalisation is positively surprising.
“We need to give credit to the country’s administration and hence, we have upgraded Malaysia to ‘neutral’,” Rajiv said.
“Foreign investors’ positioning in Malaysia remains light, but there is greater upside once it inflects upwards. We are increasingly constructive on the Malaysian equities outlook, based on the tailwinds and raise our FBM KLCI target base case to 1,650 from 1,500 previously.
“Our preferred sectors and key picks include construction, utilities, technology, healthcare and ports,” JPMorgan said.
On the flip side, it also acknowledged the challenges of subsidy rationalisation, external volatilities and potential impact of the upcoming US presidential election, which could result in weaker consumption spending, a stronger US dollar and external demand.
Also, the impending civil servant pay hike in Malaysia is expected to have a positive impact on consumption spending patterns.It noted that the move would also help cushion the government’s measures on fuel subsidy rationalisation, which could initially dampen consumer spending and overall economic activity.
“The immediate economic adjustments may result in short-term volatility and uneven sector performance. The renewable energy and electric vehicle sectors could see accelerated growth from higher fuel prices,” JPMorgan said.
“The cuts in the subsidies will go towards key policies that would increase economic productivity – literacy, people reskilling or even the progressive wage policy, which Malaysia is taking inspiration from Singapore,” Rajiv said.
JPMorgan said attention would shift to the anticipated RON95 petrol subsidy rationalisation, noting it has a higher weightage to the consumer price index, at 5.5% compared with diesel at 0.2%.
It estimated that for every 10% increase in the RON95 retail price, it will add 0.5% points to the consumer price index compared with diesel at 0.02% points.
Meanwhile, the research house said political stability remained a key anchor that would continue to maintain investor confidence in the country.
“In our view, Malaysia’s current political stability is a cornerstone for sustained economic growth and investor confidence.
“The next general election is not until February 2028, which is in another 3½ years. That provides the government with a substantial window to implement and demonstrate the effectiveness of its policies,” the research house said.
“This stability ensures a more predictable and secure environment for businesses and investors, reducing the risk of sudden policy shifts and fostering long-term planning and investment, in our view,” it pointed out.
Housing and Local Government Minister Nga Kor Ming
