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The reasons why electric vehicles (EVs) have not yet become a mainstream choice for the future in Malaysia mainly involve high costs, insufficient infrastructure, and uncertainty in the policy environment. Currently, the price of EVs is generally higher than that of traditional fuel vehicles; about 67% of consumers consider price to be the main obstacle. Meanwhile, the coverage of charging stations is low, with 57% of respondents concerned about inconvenient charging. Although the government has set a target of 15% EV adoption by 2030, the penetration rate was only 1.2% in 2024, reflecting the challenges in promotion. In addition, as an oil-producing country, low fuel prices have diminished the cost advantage of EVs, while high tariffs on imported EVs have further increased their selling prices. Although local brands such as Proton and Perodua are actively developing electric models, their production capacity and market acceptance still require time to mature. The impact of high temperatures on battery lifespan and the technical challenges of integrating renewable energy into the charging network are also limiting factors. Despite these obstacles, with enhanced policy support and gradual infrastructure improvements, EVs still possess long-term growth potential, though they are unlikely to fully replace fuel vehicles in the near term.

The main reasons for the slowdown in Tesla's sales in the Malaysian market include fierce competition with Chinese electric vehicle (EV) brands, the expiration of tax incentives for imported EVs, and the lack of localized production layout. After the tax incentives for imported EVs expire at the end of 2025, the price competitiveness of Tesla models will decline, while Chinese brands will gain an advantage with more cost-effective products and localized supply chains. Data shows that the market share of Malaysian domestic auto brands rose to 62.3% in 2025, reflecting increased consumer price sensitivity. Additionally, after Tesla canceled its plan to build a factory in Southeast Asia, its localization process stalled, leading to longer delivery cycles and higher after-sales costs compared to competitors. Notably, due to global economic uncertainty, Malaysia's auto market is expected to see overall sales drop to 790,000 units in 2026, with consumers showing a greater preference for economical vehicles. Although the EV market remains in its early stages, inadequate infrastructure and delays in charging network construction have also hindered the adoption of high-end EVs. In the short term, Tesla needs to adjust its pricing strategy or accelerate localization efforts to regain market share.

The main reasons for the rapid depreciation of electric vehicles (EVs) in Malaysia include policy uncertainty, insufficient infrastructure, and limited market acceptance. Currently, the high selling prices of EVs are mainly supported by the import tariff exemption policy, which is set to expire at the end of 2025. At that time, car prices may rise by 30% to 100%, causing potential buyers to adopt a wait-and-see attitude and further depressing the residual value of used cars. The number of charging stations only reaches 51% of the government's target, and the impact of high temperatures on battery lifespan has also heightened consumers' concerns about technical reliability. In addition, Malaysia's advantage in domestic oil resources makes the operating cost of fuel-powered vehicles significantly lower than that of EVs, while local brands such as Proton e.MAS and Perodua's first EV have not yet achieved economies of scale, making it difficult to boost market confidence. Notably, with more locally assembled models being launched and the charging network expanding in 2026, the depreciation rate may gradually stabilize, but in the short term, the dual challenges of price sensitivity and insufficient industrial chain maturity still need to be overcome.

EV is the general term for Electric Vehicle, covering all vehicle models powered by electricity, while BEV (Battery Electric Vehicle) specifically refers to battery electric vehicles and is a subclass of EV. BEVs rely entirely on large-capacity battery packs for power and are driven by electric motors without being equipped with fuel engines, thus achieving zero emissions. Representative models include Tesla Model 3 and NIO ET5. In contrast, EVs may also include hybrid forms such as plug-in hybrid electric vehicles (PHEV) and range-extended electric vehicles (REEV). Although these models are primarily electric-driven, they still retain fuel systems as backup. Pure electric vehicles are gradually gaining popularity in the Malaysian market. Their battery technologies mainly consist of lithium iron phosphate and ternary lithium, with a typical range of 400 to 600 kilometers. The charging infrastructure network is also expanding rapidly, making them suitable for daily commuting and short-distance travel. When making a choice, factors such as charging convenience, budget, and range requirements should be considered. For instance, BEVs are suitable for users with adequate charging access, while PHEVs can help alleviate range anxiety.

The working principle of electric vehicles is primarily based on the electric drive system, with core components comprising the power battery, electric motor, and electronic control system. The power battery (typically a lithium-ion battery) stores electrical energy. The electronic control system converts direct current into alternating current to power the motor, which then delivers torque directly to the wheels for vehicle propulsion. Battery Electric Vehicles (BEVs) operate solely on battery power, producing zero emissions and achieving energy conversion efficiency exceeding 90%. Regenerative braking technology converts kinetic energy from braking back into electrical energy. Hybrid models (HEVs/PHEVs) integrate a combustion engine with an electric motor, with plug-in variants supporting external charging - their pure electric mode being ideal for short-distance commutes. Range-Extended Electric Vehicles (REEVs) utilize a fuel-powered generator to extend driving range. Fuel Cell Electric Vehicles (FCEVs) generate electricity through hydrogen-oxygen chemical reactions, emitting only water vapor, though they require dedicated hydrogen refueling infrastructure. Critical systems include the Battery Management System (BMS) for real-time cell monitoring, the Vehicle Control Unit (VCU) for power distribution coordination, and charging modules supporting AC slow charging (8-10 hours) or DC fast charging (reaching 80% capacity in 30 minutes). Compared to conventional vehicles, EVs feature simplified drivetrain architecture and reduced maintenance costs, though considerations must be made for charging infrastructure availability and battery lifespan (generally 8 years or 160,000 km). Selection criteria should encompass daily range requirements, charging accessibility, and climatic factors (e.g., opting for battery preheating-equipped models in colder regions).