Sales of EVs in Malaysia grew by 19% last year to 45,562 units, making up 5.6% of total vehicle sales. (AP pic)

For many Malaysians, petrol cars are still a preferred option. But times are changing: according to one report, sales of electric vehicles (EV) in the country grew by 19% last year to 45,562 units, making up 5.6% of total vehicle sales.

Here’s what you need to know if you’re thinking of making the shift – starting with understanding what an EV is!

If you think all EVs run solely on electricity, think again. There are actually three types of EVs:

Hybrids: These run on electricity and petrol, but the electricity-only charge tends to be limited as its battery is very small in comparison to its petrol tank.
Plug-in hybrid electric vehicles (PHEV): Similar with hybrid cars, these have larger battery capacity as well as a petrol tank.
Battery electric vehicles (BEV): These are fully electric and do not have a petrol tank. When we refer to EVs in this article, we actually mean BEVs.

Price range

As of press time, EVs in Malaysia range from RM100,000 to as high as RM1 million. So, how much you can expect to spend depends on the features you are looking for – and, of course, your budget.

Here is a general overview of EV brands and models in Malaysia:

RM100,000 to RM150,000: BYD, MG, Great Wall Motor, Neta, Proton, GAC, Chery, Honda, Leap Motor, Dongfeng.
RM150,000 to RM300,000: BYD, Tesla, Xpeng, Great Wall Motor, Nissan, Zeekr, Mercedes, BMW, Hyundai, Volvo, Renault.
Above RM300,000: Porsche, Lotus, MG, BMW, Jaguar, Mercedes, Volvo, Audi, Kia, Lexus, Xpeng.

Fun fact: Perodua is reportedly planning to introduce an EV priced below RM100,000 by the end of the year. And recent reports claim that a certain GAC model can be purchased for under RM100,000.

As for why EVs have a minimum RM100,000 price tag (the above notwithstanding), it is imposed by the government to protect the local car industry. It is said that, should this policy be removed, EVs could actually cost as low as RM18,000.

Mileage

As with petrol cars, the mileage of an EV depends on the capacity of the battery. The more expensive the car, the bigger the capacity, and vice-versa.

The Proton e.Mas 7, in the RM100,000-RM150,000 price range, is said to be able to cover 345-410km on a full charge. Meanwhile, the Tesla Model 3 – priced at RM150,000-RM300,000 – has a reported range of 471-540km.

Electric vs petrol

According to Tenaga Nasional, an EV is 11.4-28.3% cheaper than a petrol car. A petrol car needs an average of RM5,335 per year (RON95 petrol), while an EV would need about RM3,825-RM4,725 per year to charge.

But remember, this is just about fuel efficiency – as mentioned above, EV cars are more expensive than petrol cars.

Let’s assume RM100,000 to be the price of an EV and compare it against a Perodua model of about RM50,000. An EV buyer would have to put up an additional RM50,000 upfront, and would need about 33 years of savings to justify buying an EV.

That is why in the Malaysian context, owning a petrol car is still more affordable, even though EVs are cheaper to charge.

The Proton e.Mas 7, in the RM100,000-RM150,000 price range, is said to be able to cover 345-410km on a full charge. (Moganraj Villavan @ FMT Lifestyle)

Charging stations

One of the major concerns is the availability of charging stations. According to the investment, trade and industry ministry, there are 3,171 charging stations in Malaysia as of October 2024. It plans to achieve 10,000 by the end of this year.

Most of these stations are located in cities, with very few in rural areas.

However, EV buyers can opt to install charging stations at home. There are two types of EV charging stations:

Level 1: A slow charger you can just plug into any electrical outlet. This usually comes together with your EV.
Level 2: A fast charger that requires you to invest about RM1,650-RM7,900, depending on the charging speed. This requires new installation and equipment, and possibly a change of your home’s electrical system to 3-phase.

Insurance

Insurance for EVs will likely be more expensive due to the fact that these vehicles are more expensive than petrol cars, and premiums are usually charged according to the value of the car.

This, however, is not the only concern: insurers are more familiar with petrol cars as they have had a long time to understand them and adjust their prices accordingly. EVs, on the other hand, are still relatively new.

Presumably, there are three primary components that an EV would need to be insured for:

batteries, which could make up 40% of an EV’s value;
charging stations, which are at risk of fire damage due to high electricity usage while charging;
repair and maintenance, since EV have different technology requirements compared to petrol cars, and there are fewer EV service providers.

A charging station at a mall in Bukit Mertajam, Penang. (TNB pic)

Maintenance and repairs

Speaking of which, it’s hard to say whether maintenance and repairs for EVs will be more expensive compared to petrol cars. After all, different cars have different tech and specifications.

Generally, EVs have longer service intervals, which means you won’t need to service them as often. The battery, which costs anywhere from RM30,000 to RM100,000, would conceivably be the most expensive part to replace.

Government incentives

There are several government incentives you can take advantage of:

road tax exemption for EVs until end of 2025;
tax break for fully imported EVs until end of 2025;
excise duty and sales tax exemption for EVs assembled in Malaysia until end of 2027;
income tax relief of up to RM2,500 for installation of subscription of EV charging facilities up to 2027.

The bottom line

Deciding whether or not to buy EV in Malaysia requires serious thought. Petrol is still considered cheap in a country where these vehicles make up 94% of total car purchases.

However, with the expected implementation of a targeted fuel subsidy and the government’s push to have EVs making up 80% of cars by 2050, switching to an electric vehicle could be easier moving forward.

This article was originally written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Faceook and Instagram.

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