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Sports teams certainly have home-field advantage, but can the same be said for automakers?
Governments across the world are asking themselves how they can give their local manufacturers a leg up in the electric vehicle race amid the dominance of Chinese players in global sales.
Malaysia is no exception, as local manufacturers are attempting to compete on price with the foreign brands that currently lead the growing market. Check out today’s featured story for a deep dive into their prospects.
Today we look at:
- Malaysia’s EV race heats up
- Family offices in Asia Pacific stick to their guns
- Other newsy highlights such as regional private equity firms teaming up to spur US$35 billion worth of investments in Vietnam and OpenAI seeking new funding at a valuation of US$150 billion.
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The electric vehicle race is heating up in Malaysia, and local automakers are hoping to cash in on rising demand.
Proton recently launched its first EV and Perodua will do so next year, but there are still hurdles to wider adoption to overcome.
- Small but growing market: There were over 22,000 EVs and hybrid vehicles sold in Malaysia in the first half of 2024, but they still make up a tiny percentage of the roughly 20 million cars on the country’s roads. Prices for EVs are currently capped to protect the interests of Malaysian manufacturers, though industry observers expect the cap to be lifted once local firms begin mass production next year.
- Range anxiety: Malaysia had only about 2,600 public EV charging points as of late June, though the government hopes to grow that figure to 10,000 by next year. The fear that EVs won’t have enough charge to reach one’s destination, known as range anxiety, is a key barrier for many consumers, and establishing an expansive charging network is important to assuage that fear.
- Fueling consumption: The Malaysian government is aiming for EVs to make up 15% of new vehicle sales by 2030 and 80% by 2050 – a lofty goal when the current figure is just 1%. According to Macquarie’s Equity Research team, the removal of blanket fuel subsidies could help spur adoption, as EV cost savings will rise if petrol prices increase.
Read more: Malaysia’s EV race electrifies as local brands undercut on price
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