KUALA LUMPUR: Malaysia's car market is now witnessing a gradual shift in interest towards electric vehicles (EVs), according to Ernst & Young's (EY) fifth annual EY Global Mobility Consumer Index.
In a statement today, EY said that the index revealed that 25 per cent 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 per cent of Malaysians said they would prefer to buy an internal combustion engine, and a hybrid car next (20 per cent).
"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 per cent), environmental impact (35 per cent) and the variety of EVs being offered (27 per cent)," 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 per cent of new car sales being EVs by 2030, Malaysian consumers remain cautious.
They are considering factors such as the resale value of EVs (57 per cent), access to renewable energy for charging their EVs (51 per cent) and ongoing battery maintenance expenses (41 per cent).
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 per cent of potential buyers citing insufficient charging points as a deterrent.
Concerns about public charging infrastructure include locating a charger (61 per cent), long wait times (53 per cent), and the cost of using public chargers (38 per cent).
"As a result, many EV owners would prefer to charge at home (68 per cent), and for those who can, the experience is more positive (77 per cent satisfaction) with charging speed (79 per cent), installation costs (72 per cent), as well as incentives and rebates (55 per cent) 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. – BERNAMA