Malaysian EV Brands Try To Give China’s BYD A Run For Its Money

Malaysian electric vehicles are gaining ground in their home market as local carmakers Proton Holdings and Perodua challenge bestseller BYD and Tesla with more affordable models.

Earlier this month, Proton said that sales of the e.MAS 7 SUV, its first EV, had exceeded 1,000 units since being released in December 2024. Since January, it has topped EV registrations by vehicle type, beating out BYD.

“The Proton e.MAS 7 has proven to be an early success so our challenge now is to keep it in the spotlight while aggressively planning for our other model introductions later this year,” said Roslan Abdullah, the CEO of Proton Edar, the company’s sales arm.

In February, the company began exporting EVs to Nepal, Singapore, and elsewhere.

Proton is receiving support from Chinese shareholder Geely Holding Group. Proton EVs are produced at a Geely vehicle plant in China and imported to Malaysia.

The two automakers aim to switch to Malaysian production, announcing plans to assemble EVs at a plant in Perak state. Local production will help reduce tariffs and transportation costs.

The e.MAS 7 is based on Geely’s Galaxy E5, which Proton engineers helped tailor to the Malaysian market. There are two versions, the less expensive Prime and the Premium. The Prime is priced at MYR 109,800 (USD 25,000), almost 30% cheaper than BYD’s popular Atto 3 and about 40% cheaper than a comparable Tesla.

The Prime is similar to the Atto 3 in terms of size and horsepower, but its 345-kilometer range is shorter than the Atto 3’s over 400 km. It also initially lacks features like the ability to link the vehicle with Apple and Google smartphones.

The Malaysian government is promoting EVs, calling on the country’s automakers to develop models priced at under MYR 100,000 (USD 22,770). Proton’s second model, scheduled for release by the end of the year, is expected to be a small, inexpensive mass-produced model.

Perodua, Malaysia’s top automaker, plans to release its first EV in the October-December period. It will be sold without a battery to reduce initial costs, local media report. Batteries will be provided on a lease basis, with the vehicle itself selling for about MYR 80,000 (USD 18,215).

Under the “New Industrial Master Plan 2030,” the Malaysian government seeks to develop domestic EVs as part of efforts to reduce carbon dioxide emissions. It aims to have EVs and hybrid vehicles account for 15% of new automotive sales by 2030.

EVs registered in Malaysia increased 80% on the year to 28,048 in 2024, according to the Road Transport Department. Although they only account for 3% of all vehicles, EVs eclipsed hybrid vehicles last year.

China’s BYD held s 31% share of the EV market in 2024, while Tesla held 18%.

“Proton and Perodua appear to be adopting distinct strategies in their EV market entry,” said Mohd Shanaz Noor Azam, an analyst at CIMB Securities who covers the Malaysian automotive industry.

Proton’s strategy is to team up with Geely and use its partner’s existing models. “This approach may limit its ability to differentiate itself, particularly in terms of an export strategy,” Shanaz said, indicating that Proton may not be able to enter markets where Geely is active.

Perodua, meanwhile, is working on developing an EV lineup, which takes more time but will enable it to respond more flexibly in the future.

“The key challenge, however, lies in whether Perodua can achieve the necessary economies of scale to effectively expand its EV platform across multiple models, ensuring cost competitiveness and sustainability,” said Shanaz.

Like other countries, Malaysia faces hurdles in building an EV charging network, and gasoline-engine vehicles are expected to remain mainstream for the near future.

Overall new automotive sales in the country totaled about 810,000 vehicles last year, surpassing the 800,000 mark for the first time, according to the Malaysian Automotive Association.

Perodua increased sales 8% on the year to 358,100 vehicles while Proton’s sales were down 1% to 152,300. Japanese brands followed in the rankings, with Toyota Motor and Honda Motor each holding a market share of around 10%.

Source: KrASIA