Price volatility fuelling interest in EVs, say industry groups

 EV sellers and owners say rising fuel costs have heightened interest in EVs, particularly among motorists who spend heavily on petrol and are seeking greater certainty over their running costs.

Industry groups say concerns over fuel price fluctuations have heightened interest in EVs. (Bernama pic)

PETALING JAYA:

Volatility in fuel prices is prompting more Malaysians to reassess the long-term costs of owning carbon fuel-powered vehicles, with electric vehicles (EVs) increasingly seen as a way to reduce transport expenses.

Industry groups say rising fuel costs have heightened interest in EVs, particularly among motorists looking for greater certainty over their running costs.

The Federation of Malaysia Electric Vehicle Associations (Fomeva) and the Malaysian Electric Vehicle Owners Club (MyEVOC) said concerns over fuel price fluctuations and the future of fuel subsidies are encouraging consumers to learn more about EV ownership.

MyEVOC president and co-founder Shahrol Halmi said many motorists were already factoring fuel price volatility into their vehicle purchasing decisions. 

“Most feel that (the subsidy) is not something that can go on indefinitely. This is creating the push to learn more about EVs and how they could cost less to ‘fuel’ when compared with petrol-driven vehicles,” he told FMT.

Motorists who are entitled to subsidised petrol under the BUDI95 initiative now pay only RM1.99 for RON95 at the pump. The prices for unsubsidised RON95 and premium fuels such as RON97 are determined weekly, based on market movements.

Prices for the week of June 4 to June 10 were RM3.72 for unsubsidised RON95, and RM4.35 for RON97.

Shahrol said EVs could become more attractive if fuel prices remain volatile, as they are less exposed to fluctuations in global oil markets.

“EVs will help shield motorists from this volatility since they are powered from the electricity grid, which in turn has a diverse fuel mix consisting of coal, natural gas and renewable sources.

“While electricity prices are adjusted monthly, the magnitude of the swings will be lower due to the nature of the fuel mix,” he said.

Fomeva president Jason Lee agreed that higher fuel prices were drawing greater attention to EVs, especially among motorists who spend long hours on the road.

However, he said interest in EVs remained closely linked to fuel prices and could ease if oil markets stabilise.

Lee also pointed to weak resale values and unresolved issues such as battery recycling as key concerns among prospective buyers.

“Pioneer users who bought EVs in 2020 or 2021 have now owned their cars for about five years and find it difficult to change vehicles because of the resale value.

“You can get a 2023 BYD Atto 3 for less than RM80,000 today, but when those owners bought the car, they paid around RM169,000.

“When there is no resale value, people become reluctant to buy. If the market cannot support a reasonable resale value, it will affect EV adoption,” he added. - FMT