KUALA LUMPUR – Do Malaysians want to buy electric vehicles? It might seem so, but the reality is this. Malaysians are starting to warm up to the thought of owning and driving an electric car, however, the current range of electric vehicles (EV) on sale cater to the upper middle class and the wealthy Malaysians only. Let us explain
In July 2019, the all-new, 2nd-generation Nissan LEAF was launched in Malaysia. This award winning 100 per cent electric 5-door hatchback is fully imported from Japan. This Nissan Leaf was priced at RM188,888 (for Peninsular Malaysia, on-the-road price with 10 per cent sales tax, without insurance and valid for private individual registration), with a three years/60,000km maintenance service, three years/100,000km vehicle warranty and eight years/160,000 lithium-ion battery warranty.
Also, there was a “subscription programme” for owners with a three-year-contract at RM3,500-a-month (Peninsular Malaysia only, without insurance and valid for private individual registration).
Only a handful of Malaysians took ownership and another small handful subscribed to the Leaf. Why? Well the pricing is beyond the reach for the middle class Malaysian car owner.
Then in August 2020, the Mini Cooper SE electric was launched and in just one month all 26 units were taken up. At a selling price of RM218,381 (with the sales tax discount provided,) this latest Mini comes with 8 years or 100,000 HV Battery Warranty from the manufacturer. Again, only upper middle class Malaysians took ownership.
It must be noted that the cost of production of EVs are still higher than petrol vehicles and this will not change until 2030, according to research done recently in Europe. On average production costs for an EV is about 20-22 per cent higher than petrol vehicles in Europe, Korea and also Japan.
Then on the 18th of September 2020, Sime Darby Auto Performance, the authorized importer of Porsche vehicles in Malaysia, launched the Porsche Taycan electric supercar. Priced from RM725,000 for the Taycan 4S, RM999.000 for the Taycan Turbo and RM1,195,000 for the Taycan Turbo S, more than 70 units are already spoken for and the interest keeps rising.
So why is the Nissan Leaf NOT selling as well as the Porsche Taycan or the Mini Cooper SE? Easy. Snob appeal.
Well-to-do Malaysians want to drive a premium electric vehicle like the Mini and Porsche, and not a Nissan. Not all EV buyers in Malaysia are ‘tree huggers’ or ‘emission free lovers’. They are buying a Mini Cooper SE EV to be trendy, for the conversation-starter aspect - and for the Porsche Taycan buyer, it is all about its neck snapping acceleration from zero to 100km/h in 2.8 seconds that the Taycan Turbo S provides (which is the most expensive Taycan and the best selling model to date).
Buying a Nissan Leaf or subscribing to the Leaf falls in the middle class Malaysians lap and they need to look at price and value more than anything else. There is resale value to consider after the battery warranty runs out and the need to have another car in the garage - a petrol powered car for the long distance cuti-cuti Malaysia drives.
Until the government realizes the need to have emission free motoring a priority in Malaysia the situation will not change. The two Malaysian national cars should be electric vehicles and this is where the average Malaysian will start adopting EVs more. – The Vibes, October 12, 2020
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