Malaysia is at a critical stage in its electric vehicle (EV) transition. With government targets set at 20% EV adoption by 2030 and 80% by 2050, significant progress has been made. Policies such as import duty exemptions, tax incentives, and the National Energy Transition Roadmap (NETR) are facilitating wider adoption.

However, challenges remain, particularly in relation to charging infrastructure, affordability, and increasing market competition.

Addressing infrastructure limitations

One of the primary concerns for Malaysian EV consumers is range anxiety, driven by gaps in charging infrastructure. As of late 2024, Malaysia has installed over 3,000 public charging stations, marking an improvement but still falling short of the 10,000 target set for 2025. While initiatives led by organisations such as Tenaga Nasional Berhad (TNB) and Gentari are expanding coverage, many charging stations are concentrated in urban areas, leaving highways and rural regions underserved.

Other markets that have accelerated EV adoption have introduced alternative solutions, including battery-swapping stations, which enable drivers to replace depleted batteries within minutes, reducing downtime. China has been a leader in this approach, aiming to exceed 16,000 battery-swapping stations by 2025 to support its expanding EV ecosystem. Additionally, incentives for home charging have facilitated EV ownership in other countries. The United Kingdom, for example, provides financial assistance covering up to 75% of the cost of installing smart charge points in residential properties through the Electric Vehicle Chargepoint Grant (EVCG). Drawing from such best practices will be essential for Malaysia in addressing range anxiety and promoting a more seamless EV transition.

Affordability as a key factor in adoption

Affordability remains a significant factor influencing the decision to switch to EVs in Malaysia. While battery costs contribute to higher upfront prices compared to internal combustion engine (ICE) vehicles, long-term savings on maintenance and energy costs enhance EV competitiveness. However, EVs are still widely perceived as premium products. This perception is gradually shifting as more affordable models become available, offering practical alternatives to conventional vehicles.

Automakers are introducing cost-effective models alongside innovative financing solutions such as leasing programmes and battery subscription plans to lower initial purchase costs. Stellantis Malaysia, through its partnership with Leapmotor, is set to introduce competitively priced, technology-driven EVs tailored for the Malaysian market. Automakers that successfully balance affordability, performance, and flexible ownership models will play a pivotal role in accelerating mass EV adoption.

Intensifying competition in the EV market

Malaysia's EV market is becoming increasingly competitive, with automakers seeking to capture rising consumer demand. A key development is the emergence of software-driven EV brands that prioritise smart mobility features and autonomous-ready technology.

Leapmotor has gained prominence in this sector by integrating smart mobility solutions with cost-effective electrification. The company is now bringing this approach to Malaysia with the introduction of the all-new C10, its first global model, a technology-focused SUV. With an emphasis on affordability and efficiency, Leapmotor's strategy aligns with the broader industry shift towards more accessible EV solutions.

The success of Malaysia's EV transition will depend not only on government policies but also on how automakers position themselves in the evolving market. A comprehensive approach is necessary - one that combines investment in infrastructure, the availability of affordable vehicles, and strategic collaborations to promote sustainable mobility. The joint venture between Stellantis and Leapmotor exemplifies how automakers can integrate global expertise with local market insights to introduce practical EV solutions tailored to consumer needs in Malaysia and beyond.

Shaping Malaysia's EV future

Malaysia's transition to EVs represents a broader shift towards sustainable mobility. Overcoming infrastructure challenges, improving affordability, and fostering competition will be essential in positioning the country as a key player in Southeast Asia's EV industry. By adopting strategies from global leaders, Malaysia can develop a robust and future-ready EV ecosystem.

For industry stakeholders, the challenge extends beyond vehicle introduction. The priority is to establish an ecosystem where electric mobility is viable, accessible, and beneficial for all consumers.