https://theedgemalaysia.com/node/707890Alternative Views: Automotive industry feels heat from intensifying EV price war
...Today, it is not unusual to find a new EV on sale for less than RM130,000. On top of the discounted price, the EVs come with a warranty of up to eight years for key components such as the battery.
The price war in the EV segment has had an impact on non-EV sales, too. A veteran car executive says prices of EVs are falling so much that even non-EV enthusiasts are thinking about purchasing one. He says customers are also waiting to see whether the government will allow the prices of EVs to drop below RM100,000.
At the moment, to protect local car manufacturers, importers are not allowed to set prices below RM100,000.
Perusahaan Otomobil Kedua (Perodua) has stated that it plans to come up with its own version of EVs next year. The price is likely to be less than RM100,000. If the local manufacturers join the fray, the government might loosen its hold on determining the pricing of EVs.
The executive says customers could postpone their decision to buy a new car, owing to the intense price war in the EV segment.
Car dealers also have to contend with the High Value Goods Tax (HVGT), which is to be imposed this year. They are hoping that the threshold for a car that will be affected by the HVGT will be higher than RM200,000 so that it will not affect the prices of mass market models.
EVs are relatively new to the Malaysian automotive industry. A year ago, it would have been difficult to find a Tesla on Malaysian roads. Today, however, they are a common sight on the roads of major cities here. The same goes for BYD’s EVs and other such models from China.
So far, there has been no push for the adoption of EVs in Malaysia because petrol is cheap and there are concerns about the ecosystem for supporting EVs.
How long, though, will petrol continue to remain relatively cheaper than in other countries in the region? As for an EV ecosystem, the number of charging stations is growing. There are already petrol stations along the North-South Expressway with charging stations.
The EV market in Malaysia will only grow because the price war will continue and the cars will get cheaper. The question is, will it take away market share from internal combustion engine vehicles and hybrid models?