Electric vehicles (EVs) are seen to be increasingly popular among Malaysians but there are two things that are preventing their sales from increasing.
RHB Investment Bank analyst Syahril Hanafiah said the first factor is driven by the expensive price of RM100,000 for fully imported EVs (CBU).
In addition, the second factor is due to the lack of charging stations.
Syahril stated that without more affordable EV options, the local EV market will remain small and will not have a major impact on the overall industry.
According to a report by the Malaysian Automotive Association (MAA), the 2.9% TIV in the first quarter of 2025 only recorded a 1% increase compared to 2024.
Based on data from the Road Transport Department (JPJ), EV registrations in the first quarter of this year jumped 46 percent to 6,827 units.
Meanwhile, the best-selling EV model is the Proton e.Mas 7 with 1,738 units so far this year.
Syahril said the March TIV increased by two percent year-on-year and 11 percent compared to the previous month due to a low base.
The surge in TIV was supported by pre-Aidilfitri deliveries driven by major brands namely Honda (31.5%), Toyota (19.6%), Proton (21.7%) and Perodua (2.9%).
Total industrial production (TPV) saw a decline of 5.7% and a 13% year-on-year decline in March.
In the second quarter of 2025, production will continue to decline due to factory closures for maintenance during the Eid al-Fitr and Eid al-Adha festive seasons.
RHB Investment Bank maintains a ‘neutral’ recommendation on the automotive sector due to the lack of factors that can increase car sales prices.
