Can Electric Vehicle Discounts Continue Or Not In Malaysia

We are seeing all EV brands like BYD, Volvo, GWM and even Chery aggressively cutting prices with hefty discounts, is this a sign of healthy market competition—or desperation?

Well, it’s all good news for Malaysian EV buyers when EV manufacturers slash selling prices to gain market share. This is NOT healthy for the market in the long run and IS IT desperation ……… well the best thing to do is to take a drive to Westport and have a look at the stock of EV’s siting there waiting for buyers. This only fuels more discounts and better prices for Malaysians.

1. With these price drops, are we witnessing a race to the bottom in the EV segment? What are the risks to quality, after-sales support, or even brand perception?

After sales is often ignored and this should be considered. Look at a smaller EV brands, they will NOT suffer a price war like this and so the BIG BOYS will come on top in the long run ….. which in EV calculation might be just 2 years or so.

1. How sustainable is this kind of pricing strategy, especially for Chinese brands trying to cement their presence in Malaysia? Could it backfire in the long run?

The backfire will be low for the dominant brands and this is why? Right now R&D on battery tech, battery management and battery software is getting better and better. Which means in the long run Malaysian EV buyers will benefit.

BUT …… it will be interesting to see HOW MANY current EV buyers who bought their EV’s at peak selling prices will return to EV ownership in 5-7 years’ time when their EV’s have little or no value.

1. What does this price war mean for legacy players—Proton, Perodua, Toyota, Honda? Are they being forced into a corner, or is the EV threat still overstated?

Well, with the Japanese brands, they are sitting and watching while enjoying their popcorn and an icy cold drink. This movie is a good one! Proton and Perodua are moving into the EV space but I think it will be just a fraction of their total volume.They will continue to sell petrol powered vehicles.

The Japanese brands will remain strong and they will have to play the discount game ……. Which they have already done in the past 6 months to keep their showrooms active.

Late last year we saw Toyota giving discounts on the Hilux, Yaris and Corolla sedan. Then this year they extended this discount to the just launched Corolla Cross ……. Even the popular Hybrid.

1. Let’s talk residual value—your recent piece on DSF.my raises concerns about EV depreciation. Are we looking at a looming crisis in the second-hand EV market?

Crisis! Yes, right now the ‘UNICORN’ used car portals have started losing market share to traditional used car sellers. The OLD used car sellers are slowly coming back strong and they are fighting back with equal or better deals and prices. Plus, traditional used car dealers have lower operating costs over the high paid UNICORN management and they DO Not HAVE to pay back any ‘angel’ investors.

So, its is only a handful of used car dealers taking in used EV’s and that at very low prices. Sime Motors recently launched EV NEXT which is a dedicated EV used dealer that takes in all and every used EV brand in order to stabilize the used EV market.

1. With price cuts on new EVs, existing EV owners may find their vehicles rapidly losing value. Do you think this will erode consumer confidence in EV adoption?

First time EV buyers mostly knew the depreciation risks …… EV FOR LIFE!

1. Government incentives and tax exemptions have played a big role in spurring EV sales. Do you think this price war would still be happening without that support? And what might happen once the incentives are taken away?

1. How are car financing and insurance sectors reacting to this volatility in EV pricing? Is the industry structurally ready for a future where values fluctuate this dramatically?

How to repossess an EV when values are dipping much much lower than discounted selling prices!

1. Are there any specific indicators—like battery technology improvements or infrastructure rollouts—that could help stabilise the EV market and slow this pricing turbulence?

Its game time for EV brands and its time for some brands to pack up and leave if they cant play the heavy discounting game.