Do all cars have to be electric by 2026?

Elon Musk holds a clearly critical stance toward hydrogen energy and has repeatedly called it "the dumbest choice in energy storage," primarily citing practical challenges such as low hydrogen storage efficiency, the need for massive storage tanks, and the complexity of liquid storage technology. He notes that current hydrogen production still depends on fossil fuels, which conflicts with sustainable development goals, and that electric vehicles far surpass hydrogen fuel cell vehicles in range under equivalent energy capacity (50kWh enables an electric vehicle to travel 400 kilometers, whereas 1kg of hydrogen provides only about 80 kilometers of range). While he acknowledges hydrogen's potential in specific applications like long-haul transport, he maintains that battery technology and renewable energy represent the future of transportation. Notably, automakers such as Toyota continue to advance hydrogen fuel cell development, but Musk's perspective reflects pragmatic assessments of technological readiness and commercial viability, consistently focusing on enhancing the efficiency and sustainability of the electric vehicle supply chain.

Hydrogen fuel cell vehicles and electric vehicles each have their own advantages and disadvantages in the Malaysian market, and it is unlikely that one will completely replace the other in the short term. Hydrogen fuel cell vehicles excel in high energy density and fast refueling—for instance, the Toyota Mirai and Hyundai Nexo can achieve a range of 600 to 700 kilometers and only take a few minutes to refuel. This makes them particularly suitable for commercial vehicles and long-haul transportation, aligning with the Malaysian government’s strategy of prioritizing hydrogen technology for heavy-duty transport development. However, hydrogen fuel cell vehicles face challenges such as high hydrogen production costs and insufficient refueling station infrastructure. Currently, the cost of hydrogen is approximately 60 to 70 Malaysian ringgit per kilogram, making the 100-kilometer energy consumption cost three times that of electric vehicles. Additionally, the construction cost of a hydrogen refueling station is as high as 15 million Malaysian ringgit, posing significant difficulties for promotion. In contrast, electric vehicles remain the mainstream choice for urban commuting due to mature battery technology, gradually improved charging networks, and lower operating costs. In the future, the two technologies may coexist for a long time: hydrogen fuel cell vehicles may make breakthroughs in the commercial vehicle sector, while electric vehicles will continue to dominate the passenger vehicle market. The ultimate development will depend on technological breakthroughs, policy support, and progress in infrastructure construction.

While the potential of hydrogen energy as a future fuel is widely recognized, its commercialization process still faces multiple challenges. Currently, hydrogen fuel cell vehicles have achieved technological breakthroughs in the commercial vehicle sector; for example, liquid hydrogen heavy trucks with a range of 1,000 kilometers are about to enter demonstration operation. However, the overall market scale remains limited: in the first three quarters of 2025, sales were only 4,133 units, failing to cross the threshold of 10,000 annual sales. Key constraints include insufficient infrastructure and high costs. The construction cost of a single hydrogen refueling station is approximately 15 million ringgit, with a payback period as long as 5 to 10 years, and most stations are located on the outskirts of cities, leading to low utilization rates. In addition, the stability of the hydrogen supply chain and bottlenecks in storage and transportation technologies (such as the limited adoption of liquid hydrogen technology) have further slowed down the adoption rate. Although the localization rate of the industrial chain has exceeded 85% under policy support, technical barriers in the passenger vehicle sector (such as membrane electrode processes) still need to be overcome. It is worth noting that hydrogen energy still holds irreplaceable advantages in medium- and long-distance heavy-duty transportation. With the implementation of policies like "hydrogen energy highways" and collaborative innovation among industry, academia, and research institutions, it is expected to enter a phase of large-scale development after 2026. At this stage, hydrogen energy is more suitable as a complement to pure electric technology rather than a comprehensive alternative.

Currently, used electric vehicles (EVs) do face a relatively high depreciation rate in the resale market, generally faster than traditional internal combustion engine (ICE) vehicles. According to market feedback, the depreciation of used EVs can reach up to 40%, while that of ICE vehicles typically remains around 10%. The primary factors contributing to this phenomenon include rapid technological advancements, consumer concerns regarding battery longevity and maintenance accessibility, as well as market oversupply. For instance, some EVs used for 2-3 years are being sold at nearly 50% below their original prices, with certain models experiencing depreciation rates exceeding 60% within five years. Nevertheless, this accelerated depreciation has rendered used EVs a cost-effective option, particularly brands like BYD that have demonstrated relatively stronger performance in the secondary market owing to their competitive pricing. Moreover, price competition in the new vehicle market has further eroded the residual value of used EVs. Recent substantial price reductions for models such as the BYD Atto 3 and Chery Omoda E5 have exacerbated competitive pressures in the pre-owned vehicle market. Looking ahead, while policy reforms and localized production initiatives may gradually stabilize EV depreciation trends, resale challenges and depreciation risks are expected to persist in the near term.

The development prospects of electric vehicles (EVs) in Malaysia are highly optimistic, primarily driven by government policy support, growing market demand, and active deployment by both local and international enterprises. According to the *New Industrial Master Plan 2030*, the government aims for EVs to account for 15% of new car sales by 2030, increasing to 38% by 2040, alongside the deployment of 10,000 public charging stations. In 2024, registered battery electric vehicle (BEV) sales surpassed 15,000 units, marking a year-on-year growth of over 60%, reflecting significantly improved consumer acceptance of EVs. Local automakers such as Proton and Perodua have either launched or plan to introduce EV models, while the entry of international brands like BYD and Tesla has further diversified market options. Charging infrastructure is also expanding rapidly, with the number of charging stations projected to reach 4,000 by 2025. Additionally, climate advantages (year-round summer) and charging cost savings (approximately 50% lower than fuel costs) further enhance the appeal of EVs. With Malaysia serving as the ASEAN chair in 2025, adopting EVs as official vehicles, and the progress of China-Malaysia cooperation projects, Malaysia is poised to become a regional EV hub, entering a phase of accelerated market development in the coming years.