Overview of the electric motorcycle market in Malaysia

Overview of the electric motorcycle market in Malaysia
Malaysia's electric vehicle (EV) market is growing at an accelerated pace, despite its small size. Electrified vehicles, including battery electric vehicles and plug-in hybrids, account for about 5% of total industry sales.
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    In 2023, sales of electric vehicles surged 69% year-on-year. Malaysia is one of the world’s largest motorcycle markets. Although the share of electric vehicles in the overall Malaysian market is still modest, the government has set a development target to have 125,000 electric vehicles on the road by 2030, and the market is expected to continue to grow in the coming years.

    This article will analyze the Malaysian automotive market, especially the electric motorcycle market, the latest policy developments, and the performance of major Chinese brands in the Malaysian market.

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    Market trends and convenient charging for motorcycles

    Motorcycles are also the main mode of transportation for Malaysians. Between 2013 and 2016, the Malaysian motorcycle market experienced continuous negative growth due to factors such as the continued weakness of the local export industry, which led to higher unemployment and a decrease in consumer spending willingness.

    It was not until 2017 that the market began to recover gradually, driven by the growth of the commercial market and the high-end market, and after three years of rapid growth, it returned to the level of 2013.

    Malaysia’s electric vehicle (EV) market can be divided into two segments: electric and plug-in hybrid motorcycle. Battery electric vehicles rely entirely on batteries as their power source, while plug-in hybrids combine a dual battery and internal combustion engine powertrain.

    EV sales are mainly concentrated in densely populated areas, and there is a better base for charging infrastructure, providing a convenient charging solution for EV owners. Tesla has a strong position in the Malaysian electric vehicle market with a market share of about 70%.

    The vigorous development of the electric vehicle market has also led to the growth of related industry chains, especially the construction and supply of charging infrastructure.

    Market trends and convenient charging for motorcycles

    Local charging infrastructure providers such as GreenTech Malaysia and Charge+ are working to expand their charging networks to meet the growing market demand.

    Competitive landscape analysis

    The Malaysian market is dominated by two major Japanese brands, Yamaha and Honda, which have factories in Thailand and Indonesia, with more than 60% of the market share in their hands.

    It’s just a slight difference from the Philippines and Indonesia, where the market leader is Yamaha instead of Honda. Malaysia’s high-end motorcycle market is quite active, which should be closely related to the local income growth and the love of motorcycle culture.

    Growing consumer concerns about the environment and climate change are driving the demand for eco-friendly transportation options, such as cheap electric motorcycle.

    The Malaysian government’s support and incentives for the adoption of electric vehicles, such as tax exemptions and the installation of charging infrastructure, are also contributing to the growth of the electric vehicle market. Lower operating costs and the availability of advanced technologies are also attractive factors for consumers considering purchasing an electric vehicle.

    Market potential - the potential customer base

    The addressable market encompasses a group of consumers who see sustainability as an important value and are committed to reducing their carbon footprint. Specific target customer groups include:

    • City dwellers

    Due to the shorter daily commuting distance and the better charging facilities in urban areas, they are more inclined to choose electric vehicles as a means of daily travel.

    Market potential - the potential customer base

    • Commercial fleet operators

    For example, express delivery and logistics companies, which have large fleets, will benefit from reduced operating costs and reduced environmental emissions if they switch to electric vehicles.

    • Government agencies

    Given that the Malaysian government has set a vision to reach 125,000 electric vehicles by 2030, government agencies will be the first mover in electric vehicles and lead the market trend.

    • Environmental advocate

    Those who are passionate about environmental protection and sustainable living, who are willing to reduce their personal environmental impact by adopting electric vehicles and do their part to protect the planet’s environment.

    • Tech enthusiasts

    For consumers who pursue the latest technology and innovative products, electric vehicles are not only a means of transportation, but also a symbol of technological progress. This group may choose electric vehicles out of interest in new technologies.

    By targeting these specific demographics, top 10 electric motorcycle manufacturers are able to more effectively promote the benefits of EVs and promote their acceptance and adoption in the Malaysian market.

    The current market challenges and solutions

    High upfront costs, range concerns, and limited model options remain barriers for some consumers to choose EVs. Lack of awareness and education about electric vehicles is another challenge.

    Limited charging infrastructure in some regions limits scope and discourages potential buyers to some extent. However, the government’s continued investment in charging infrastructure development is expected to be addressed in the coming years.

    The Malaysian EV market is still in its early stages, but it is expected to continue to grow rapidly in the coming years with government support and growing consumer interest.

    The current market challenges and solutions

    • Increase in market share

    The growth rate of the market will accelerate. Growing consumer awareness of the benefits of electric vehicles, especially their low operating costs and environmental benefits, has sparked interest in purchasing electric vehicles.

    • Diversification of vehicle models

    As the market continues to grow, more manufacturers like Benlg are expected to launch electric models that target the Malaysian market, such as those with a longer range, faster charging times, and more affordable prices.

    • Well-developed charging infrastructure

    Continued government investment will expand the coverage of charging infrastructure, address the lack of charging infrastructure in some areas, and make the use of electric vehicles more convenient.

    • Intensified market competition 

    As the market grows, competition is expected to intensify, and existing market players need to innovate and differentiate themselves to remain competitive. This may include providing new features and technologies, expanding the network, and improving customer service.

    • Increased government support

    The Malaysian government is expected to continue to support EV market growth through tax exemptions, installation of charging infrastructure, and R&D funding. This support will encourage more players to enter the market and help accelerate market growth.

    Conclusion

    With a population of more than 30 million, it has a strong spending power. It has a wealth of product resources, including multiple areas. Chinese companies can find suitable suppliers and production bases in Malaysia to expand their product lines to meet different market needs.

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