In a statement today, EY said that the index revealed that 25% of Malaysians are interested in buying an EV despite slow global demand, driven by rising fuel costs and environmental considerations.
The report surveyed 19,000 respondents from 28 countries, including Malaysia.
“Nearly 40% of Malaysians said they would prefer to buy an internal combustion engine, and a hybrid car next (20%).
“To unlock the next phase of growth for full EVs will require car brands to appeal to younger, more cost-conscious, and motivated consumers to make the switch due to rising fuel costs (43%), environmental impact (35%), and the variety of EVs being offered (27%),” said EY.
The assurance, tax, transaction and advisory services company added that despite government incentives targeted at growing the EV market, with the aim of 15% of new car sales being EVs by 2030, Malaysian consumers remain cautious.
“They are considering factors such as the resale value of EVs (57%), access to renewable energy for charging their EVs (51%), and ongoing battery maintenance expenses (41%),” it added.
EY Asia Pacific energy customer experience leader Mark Bennett said the survey showed that there is still a long way to go when it comes to addressing issues around infrastructure, range and battery replacement costs.
“A significant number of consumers remain sceptical about EVs, particularly on infrastructure and cost of ownership.
“These are not new concerns. There needs to be a sustained effort across the ecosystem to address these concerns, otherwise, we run the risk of turning consumers off EVs at a time when they should be getting more excited about them,” he said.
The report also underscored the critical role of charging infrastructure in building consumer confidence to switch to EVs, with 27% of potential buyers citing insufficient charging points as a deterrent.
“Concerns about public charging infrastructure include locating a charger (61%), long wait times (53%), and the cost of using public chargers (38%).
“As a result, many EV owners would prefer to charge at home (68%), and for those who can, the experience is more positive (77% satisfaction) with charging speed (79%), installation costs (72%), as well as incentives and rebates (55%) being important considerations,” EY said.
Bennett also said that while China leads the world in EV production, demand, infrastructure and brand perception remain a challenge.
“The affordability and technology driving China’s EV industry are arguably the global benchmark. However, for many international EV buyers, their purchase is influenced by more than just price.
“It is also influenced by brand, service, quality, and price residuals,” he said.