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The cost of car ownership is changing, but for electric vehicles (EVs) in Malaysia, the maths do not quite add up yet
While the tech is sleek, the friction in the secondary market is real.
Industry players suggest that beneath the shiny exterior of a new EV lies a series of financial and structural hurdles that's stopping many Malaysians from owning EVs.
From plummeting resale values to battery anxiety, here are some of the reasons stopping Malaysians from adopting EVs.
1. The resale value for EVs is low
Suresh Nair, a sales executive at Carconnections Subang, told Free Malaysia Today that the market is currently in a state of high uncertainty.
A Mercedes-Benz EQS 500 that cost RM648,000 in 2024 is now fetching only RM350,000, a massive 45% drop in just two years.
2. Battery life remains a major concern for buyers
He explained that the car retains no value once the battery is depleted, just like a mobile phone.
The cost of replacing those batteries is also astronomical.
In most EVs, the battery pack accounts for about 40% of the total price, making it a significant financial risk for any second-hand owner.
3. After-sales support remains patchy across the country
The servicing ecosystem is still in transition, and many workshops are not yet fully equipped to handle EVs.
Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Tony Khor said the servicing ecosystem is still in transition, as independent workshops are not yet fully equipped to handle high-tech repairs.
Most independent workshops are not yet trained or equipped to maintain EVs, limiting options for long-term ownership.
4. Lack of warranty for used EVs, leading to difficulty with trade-ins
Khor added that warranty transferability is a major issue.
Buyers also prefer new EVs because they come with a warranty, whereas the "secondary market" is viewed as risky due to warranty transferability issues.
Due to a low resale market, many dealers are reluctant to accept electric vehicles as trade-ins, a factor that has further cooled the market.
"These factors erode the long-term value of EVs," Nair said.
5. An oversupply of new EV brands is putting downward pressure on prices
The entry of many new EV brands has created an oversupply, which puts downward pressure on prices and depresses the market.
