Analyst Hezeri Samsuri, who writes for an automotive site, believes that despite widespread adoption of EVs in many countries, various limitations remain unresolved.

He said the key issues include the short lifespan of batteries and the high cost of recycling them, as well as the need for proper storage facilities for spare batteries at service centres.

Additionally, challenges with EV charging -particularly the lengthy charging times and the high cost of installing direct current fast-charging stations – continue to pose hurdles.

“If an EV’s (driving) range is too short, its resale value will inevitably drop, leaving subsequent owners facing potentially high battery replacement costs without knowing the exact amount,” Hezeri told FMT.

He also anticipates that the higher price of EVs compared to internal combustion engine (ICE) vehicles will force consumers to take out long-term loans.

“Malaysia can’t adopt the vehicle ownership model seen in China, Europe and the US because the price gap between new and used vehicles is significant, and local consumers have limited means for short-term financing,” he said.

Hezeri was commenting on the government’s target to achieve 20% EV sales out of the total annual passenger and commercial vehicle sales by 2030.

The investment, trade and industry ministry revealed in the Dewan Rakyat the current annual EV sales rate reached 5.11% as of September, compared to 4.12% in 2023.

Academic Chew Kim Loong from Despark International College said many prospective EV owners are reconsidering their decisions because of concerns over their resale value.

“ICE vehicles have been in the market for over a century and can last more than five years,” he said.

He said the durability of these vehicles helps owners who are already managing high financial commitments in today’s economy, “unless there’s a solution that offers lower-cost EV battery replacements, longer driving range, and fast charging facilities”.