Malaysia’s national carmakers are joining the EV wagon, but hurdles remain

Malaysia has been ramping up its electric vehicle policies ever since the change of government in 2022, with Prime Minister Anwar Ibrahim setting a few targets.

These include the import and manufacturing of EVs below 100,000 ringgit (around US$21,350), the installation of 10,000 charging ports by 2025, and the rollout of 1.5 million EVs across the country by 2040.

National automaker Proton has inked a deal with Geely to distribute the latter’s Smart EV range in the country. / Photo credit: Proton

While these targets are clear, Kuala Lumpur-based industry practitioners tell Tech in Asia that they remain lofty. This is despite Malaysia’s national automakers – Proton and Perodua – lending their weight to help drive forward the government’s EV policies.

Perodua is the top-selling vehicle brand in Malaysia, commanding a 39.5% market share for the first half of this year, according to data from the Malaysian Automotive Association. Proton comes in second with a 20.8% market share in the same period.

Both Perodua and Proton have been tipped to produce cheap EVs.

Moreover, Perodua’s parent shareholder, Bursa Malaysia-listed UMW, is in merger talks with another listed auto giant, Sime Darby.

Kuala Lumpur-based equity analysts who spoke with Tech in Asia believe that the deal will go through given that both UMW and Sime Darby share a common major shareholder – state-owned asset manager PNB – as well as minority shareholders consisting of other government-linked companies.

If Perodua throws its hat into the EV ring, its ability to produce cars priced below 100,000 ringgit will depend on its ability to secure local manufacturers.

Another of Perodua’s major shareholders, Japanese carmaker Daihatsu, does not have a fully electric marquee on the market yet. But Daihatsu unveiled its EV prototype to Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Aziz during the latter’s visit to Japan.

As for Proton, its partner and majority shareholder, Geely, has rolled out EV models. While Geely hasn’t directly said that it would be producing EVs made in Malaysia, it has expressed intentions to increase investments in Tanjung Malim, where Proton’s manufacturing facility is located.

Prime Minister Anwar deemed the move a game changer and touted that Geely’s investments would see the creation of the region’s largest auto city. Investors, on the other hand, see it as a signal that Proton would be pushing out locally made EVs when Geely ramps up investments.

Proton CEO Roslan Abdullah also told national newswire Bernama that the firm is ramping up production and plans to introduce EVs by 2025 instead of its initial projection of 2027.

For now, Proton has inked a distributor agreement with Geely to distribute the latter’s Smart EV line. Local auto website Paultan.org believes these will be priced above 100,000 ringgit.

Not so simple

More systemic hurdles

Like conducting an orchestra