Automotive: EVs Charging Ahead, Faster and Farther PDF Free Download
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ESG Thematic
28 March 2025
Page 1 of 8
Automotive
OVERWEIGHT
EVs Charging Ahead, Faster and Farther
↔
By Wan Mustaqim Bin Wan Ab Aziz l wanmustaqim@kenanga.com.my
Proton eMAS 7 has made a grand entry into the local electric vehicle (EV) market,
garnering the top spot among the best-selling EVs in 2025, with 4,500 bookings since the
start of order-taking. Malaysians’ interest in EV has been building up, chalking up
significant rise in sales over the last four years. In this note, we take stock of our nation’s
EV adoption goals, including infrastructure, with estimates comparing GHG emissions of
owning a BEV versus ICE vehicle to show that the former is half as efficient over the life-
cycle. We also peek into trends that could speed up the adoption of the EVs ahead.
Our CY25 forecast of new vehicle sales in Malaysia, or total industry volume (TIV), at 805K
units (-2% YoY) is a tad above forecast of 780K (-4.4%) by the Malaysian Automotive
Association (MAA). We maintain OVERWEIGHT on the sector. MBMR (OP; TP: RM6.90) and
HLIND (OP; TP: RM15.90), are our sector picks, being good proxies to the affordable
vehicles market and fuel subsidy rationalization besides offering attractive dividend yield
of about 8% and 5%, respectively
Surging EV interest. Proton eMAS 7 has made a grand entry into the local electric vehicle (EV) market, garnering the top
spot among the best-selling EVs for January and February 2025, right after its launch in mid-December 2024 (bookings have
exceeded 4,500 units since the start of order-taking, with a total of 1,001 units delivered). Its also stand to benefit from the
EV local assembly programme at Proton Tanjung Malim plant by end-2025 which is expected to further boost is capability to
meet the significant backlog for its Proton EV including for its second EV, Proton eMAS 5 to be launched in the 2HCY25.
Malaysians’ rising interest in EVs has translated into encouraging sales, chalking up significant increases on monthly and
yearly basis. It is crucial that the momentum is maintained if Malaysia is to achieve the targets set for EV adoption and
charging infrastructure in line with the Low Carbon Mobility Blueprint and the nation’s aspiration towards a net-zero 2050.
Proton eMAS 7 is competitively priced with the Prime variant at RM105,800, while the Premium variant is priced at
RM119,800 on-the-road excluding insurance, with the early-bird discount for the first 6,000 customers, against its closest
competitors such as the BYD Atto 3 (RM149K originally, but with the recent price drop, it is now RM123K to match that of
Proton), Neta X (up to RM135K) and Chery Omoda E5 (RM146K, but is now reduced to RM120K). The base Prime model
comes with a 49.5 kWh battery (345km of WLTP range) while the Premium gets a 60.2 kWh battery (410km WLTP range).
For charging, the max DC rate is 80 kW for the Prime and 100 kW for the Premium, while AC charging is 11 kW max for
both. Proton claims that the DC fast charging takes just 20 minutes from 30% to 80% SoC, while AC charging refills the
smaller battery in 4.9 hours, or 6.1 hours for the Premium.
EV adoption target. Electrification of the transportation sector is a key strategy in reducing emissions as stated in the Low
Carbon Mobility Blueprint (LCMB) (2021─2030). To recap, Malaysia sets a goal for xEVs (including battery EV and hybrid
vehicles) to make up 20% of annual new vehicle sales by 2030, 50% by 2040 and 80% by 2050. The government has also
stated that it aims to have 10,000 charging bays by 2025 (8,500 AC plus 1,500 DC) and 1.5m EVs on the road by 2040.
While hybrid vehicles such as the Toyota (Prius, Corolla Cross, Camry, Innova), Honda (Insight, City, HR-V, Civic), Hyundai
Ioniq, Perodua Ativa, Nissan Serena & XTrail, BMW and Volvo plug-in hybrids have a far longer presence in Malaysia (20
years), full EVs (battery EVs or BEVs) such as the Nissan Leaf (2013), BYD (2022) and Tesla (2023) are more recent
entrants. Malaysia’s xEV market has a good mix of offerings with over 30 Chinese, European, US and Japanese brands.
Where we are now. EV (pure electric) adoption in Malaysia is seeing a significant rise, particularly in the last three years i.e.
2022 (3,686 units registered), 2023 (13,257) and 2024 (22,940) as reported by the Malaysian Zero Emission Vehicle
Association (MyZEVA). The strong momentum of xEVs continues in 2025, chalking up 3,940 units (2,249 hybrid, 1,691 EV)
in January and 4,272 units (2,112 hybrid, 2,160 EVs) in February, when the sales of EV overtook that of hybrid vehicles (see
Chart 1). Domestically, Proton launched the eMAS 7 in December 2024 to promising response (the best-selling EV for
January and February 2025) with plans to launch the smaller eMAS 5 in 4QCY25, coinciding with the expected debut of the
Perodua EV.
Despite recording sharp year-on-year growth, the sales of xEVs are small compared to the total TIV. As an example, 2024
saw a TIV of 856,292 units but xEVs represented just 8.1% of the total TIV at 69,596, comprising 38,797 BEVs and 30,796
hybrid vehicles. The target of 20% TIV by 2030 would translate to over 180,000 EVs, according to MyZEVA.
Automotive
ESG Thematic
Sector Update
28 March 2025
Page 2 of 8
As for charging points, as at December 2024, 3,611 chargers have been deployed (1,095 DC, 2,516 AC (giving a ratio of
1:11), reaching just 36% of the targeted 10,000 chargers. More than half the chargers are concentrated in Selangor, Kuala
Lumpur, Penang and Johor. Analysis by MyZEVA showed that with the current average DC charger deployment rate of 94
bays per month, Malaysia is expected to hit the target of 1,500 by 2Q 2025, six months earlier than the deadline. As for AC
chargers, at the current deployment rate of 53 per month, the 8,500 target is expected to be achieved only by 3Q 2026 (nine
months behind schedule), and this presents investment opportunities in the AC charging business (see Chart 2). By 2030,
Malaysia will need about 92,000 chargers to serve 740,000 BEVs (ratio of 1:8), based on MyZEVA’s estimates (see Chart 3).
Chart 1: Breakdown of xEV Sales 2021─2025 (Hybrid & EV)
* Jan 2025, Feb 2025 cumulative volume
Source: MAA, data.gov.my, MyZEVA, Kenanga Research
Year
Hybrid
BEV
Total xEV
Vol
%
Vol
%
2021
7,875
89%
961
11%
8,836
2022
19,988
84%
3,686
16%
23,674
2023
28,055
68%
13,257
32%
41,312
2024
30,796
57%
22,940
43%
53,736
*2025
4,361
53%
3,851
47%
8,212
Chart 2: Charger Deployment Forecast
DC
AC
Source: MEVnet, MyZEVA
Chart 3: Projected Chargers Required by 2030
Source: MyZEVA
Automotive
ESG Thematic
Sector Update
28 March 2025
Page 3 of 8
We can expect to see more hybrids (PHEV) entering the market i.e. vehicles that can travel from 900km to over 1,000km,
powered by both gasoline and battery packs (smaller compared to pure EVs), following Jaecoo J7 PHEV’s launch in
February. Apart from PHEVs’ much longer range, these vehicles are priced only about 5%-15% more than the highest
variant of the ICE model while addressing worries over range, affordability and familiarity. As PHEVs do not receive any tax
exemptions, their prices will not be impacted if the tax incentives for EVs end on 31 December 2025. In fact, PHEVs could
benefit from the higher prices for CBU EVs with the return of import and excise duties.
EV and emission
Electric mobility is one of the four focus areas in the LCMB as part of Malaysia’s commitment to achieve net zero by 2050,
Transportation is the second biggest contributor of GHG emissions, making up over 25% of the total energy sector’s
emissions, and accounting for 40% of Malaysia’s total energy consumption. As at October 2023, there were almost 24m
active vehicles (with valid road taxes). EVs have zero tailpipe emissions (pollutants such as carbon dioxide, carbon
monoxide, hydrocarbons, nitrogen oxides and sulphur) and hence produce significantly less emissions than internal
combustion engine (ICE) vehicles. Comparing the emissions between EVs and ICE vehicles one must also take into
consideration life-cycle emissions which include emissions generated during the following process, which are then spread
over the vehicle’s lifetime mileage (200,000km):
• Manufacturing process
• Battery assembly and mineral (up to 60% emission in battery production for EV). According to estimates by
McKinsey, the production of an EV battery emits up to 100kg of CO2e per kilowatt-hour (CO2e/kWh).
• Fuel and electricity consumption (source of electricity or grid emission factor for EV). An ICE vehicle emits 2.3kg of
CO2e for every litre of gasoline or 16kg of CO2e for every 100km (assuming a fuel economy of 7L per 100km)
based on estimates by the US Environmental Protection Agency.
• End-of-life disposal
Below is a simple comparison based on International Energy Agency (IEA) data:
Comparison of Lifecycle GHG Emission between BEV and ICE Vehicles
BEV
Base case
BEV
High-GHG minerals case
ICE Vehicle
Vehicle manufacturing
5.4
5.4
6
Batteries ─ assembly and others
1.2
1.2
0.01
Batteries ─ minerals
1.4
2.8
0.03
Electricity
11.7
11.7
0
Fuel cycle (well-to-wheel)
0
0
35.9
Total emissions per vehicle lifetime
(tonnes CO2e per vehicle lifetime)
19.7
21.1
41.94
Automotive
ESG Thematic
Sector Update
28 March 2025
Page 4 of 8
Assumptions:
1. The 'High-GHG minerals' case is double the GHG emission intensity for battery minerals (70kg CO2e/kWh vs 35kg
CO2e/kWh in the base case).
2. The values are for a vehicle manufactured from manufacturing lines assuming dynamic global average grid carbon
intensity in the SDS (including transmissions, distribution and charging losses, weighted for mileage decay over a 20-year
lifetime).
3. The ranges shown for BEV are for charging with a static low-carbon (50g CO2e/kWh) and high-carbon electricity mix
(800g CO2e/kWh).
4. Vehicles: 200,000km lifetime mileage; ICE fuel economy 6.8L/100 km; BEV fuel economy 0.19kWh/km; BEV battery
40kWh NMC
Source: IEA
Assuming 1.5m BEVs are on Malaysian roads by 2040, our GHG emissions could be reduced by over 30m tonnes a year.
Further cuts can be achieved when the grid’s carbon intensity is reduced with the increased supply of renewable energy and
as battery manufacturing becomes more sustainable with lower energy consumption and reliance on critical minerals.
Opportunities in technology
The rapid advancement in battery technology and autonomous driving are pushing the EV industry ahead in the race to
decarbonize road transportation. Recent developments in the areas of charging, materials used and higher degree of
autonomous driving indicate that innovation and improvement are happening faster than expected, and this could make low-
carbon mobility a reality in the near futures.
BYD’s recent unveiling of its “Super E-Platform” ultra-fast charging system intensified the competition among EV players racing
to stay ahead. The new charging platform is capable of charging BYD’s latest models in just five minutes, giving a range of 2km
per second and delivering 400km, matching the average time it takes to fuel up an ICE vehicle. BYD has also announced plans
to build 4,000 ultra-fast charging stations across China with this new technology.
Another innovation is battery swapping which enables EVs to replace its depleted battery with a fully charged one, all under a
brief five minutes. China companies like NIO (EV maker) and CATL (battery manufacturer) are at the forefront of deploying the
facilities NIO has over 2,000 stations (about 30 in Norway, Sweden, Denmark, Germany, and the Netherlands with the rest in
China) while CATL plans to roll out 1,000 stations by the end of 2025.
On the battery front, promising progress is being made in the mass production of solid-state batteries (higher energy density,
faster charging, enhanced safety), improvement in lithium-ion phosphate batteries (already used in some BYD and Tesla
models) that is cobalt-free (cobalt mining is damaging to the environment and human labour), and sodium-ion batteries (sodium
is abundant and cheap, more sustainable compared to lithium). The rapid progress in battery technology means batteries, the
main cost component of an EV, can be made cheaper, safer and more sustainably.
For Malaysia, rapid charging and battery swapping may have good potential, particularly in dense high-rise urban areas where
owners do not have their own chargers and the high land cost is a barrier to building charging stations. Blueshark, the Malaysian
subsidiary of China-based Sharkgulf Technologies Group, a pioneer in battery swapping in this country, has 20 battery
swapping stations for its electric motorcycles (15 in Klang Valley, three in Johor and two in Penang).
The impending carbon tax, fuel subsidy rationalization and better incentives for residential solar installation could act as
catalysts for mass EV adoption in Malaysia with careful and effective policy implementation, taking into consideration the cost of
ownership, grid emission, charging infrastructure, and consumer mindset.
Sector Outlook
A two-speed automotive market locally is expected to persist in CY25. The affordable segment will remain resilient as its
target consumers (the B40 and lower-tier M40 groups), that are largely shielded from the impact of the impending RON95
subsidy rationalization and could benefit from higher minimum wages and government salary hikes.
Our CY25 TIV forecast of 805k units (-1% YoY) will be driven by forward buying spurred by the deferment of new excise duty
regulations to end-2025, with Perodua set to benefit the most at 44% TIV market share due to its highest localisation rate (that
could led to 10%−30% price increase) as well as attractive new model launches (i.e. Perodua hybrid, Perodua EV and all-new
Perodua Myvi), higher household income and a stable labour market (our economic research team forecast unemployment
rate of 3.1% in CY25 vs. 3.3% in CY24).
In contrast, the premium segment may face headwinds, as its target upper tier M40 and T15 consumers may delay
purchases, downsize to smaller cars or switch to hybrids and EVs to cut their fuel costs post-fuel subsidy rationalization.
Concurrently, household will also be affected by the higher fuel costs, as well as expected 14% hike in base electricity tariffs
for the higher-end usage which could also drive consumers to switch to solar panels, in turn boosting EV demand, while
capitalising on excess grid electricity (essentially free energy). Additionally, lower maintenance costs of EV compared to ICE
vehicles due to fewer moving parts and wear-and-tear parts will add to their appeal. EV market players could also explore
different purchase/leasing and financing options.
Automotive
ESG Thematic
Sector Update
28 March 2025
Page 5 of 8
Overall, the industry’s earnings visibility remains good, backed by a booking backlog of 130k units as at end-February 2025,
with new models making up more than half of the backlog, reflecting strong consumer interest in new launches. This trend is
likely to persist throughout CY25 given a strong line-up of new launches.
More battery electric vehicles (BEVs) in the market. Vehicle sales will also be supported by new BEVs that enjoy SST
exemption and other EV facilities incentives up until CY25 for CBUs and CY27 for CKDs. The new registration for BEVs leapt
from 274 units in CY21 to over 3,400 units in CY22, 13,301 units in CY23, and 21,789 units in CY24 (based on the Ministry of
Transport’s press release), or 3% of TIV. We expect more favourable incentives from the government which has set a national
target for EVs and hybrid vehicles of 20% of TIV by CY30 and 38% by CY40. Meanwhile, the government will speed up the
approval for charging stations. The number of proposed charging stations is currently at 4,299 (3,611 built to date) and this
should more than double to 10,000 by end-CY25.
Our sector top picks are as follows:
MBMR for: (i) its strong earnings visibility backed by an order backlog of Perodua vehicles of 80k units (CY25 target sales of
345k units), (ii) being a good proxy to the mass-market Perodua brand given that it is the largest dealer of Perodua vehicles
in Malaysia, as well as its 23% stake in Perusahaan Otomobil Kedua Sdn Bhd, the producer of Perodua vehicles, and (iii) its
attractive dividend yield of about 8%. We also expect MBMR to benefit from the slew of new launches planned for Perodua
(new models fetch higher margins), expansion of its dealership offerings through the Jaecoo brand and the downtrading
trend by buyers boosting demand for its affordable Perodua brand and the value-for-money Jaecoo brand.
HLIND: (i) as it is a strong proxy to the booming gig economy given the critical role of motorised two-wheelers in executing
online delivery transactions, (ii) for its association with the strong Yamaha motorcycle brand in Malaysia and the brand’s
market leader position in the local motorcycle segment, and (iii) for its solid war chest with a net cash of RM1.9b that could
be deployed for earnings-accretive acquisitions. Its dividend yield is also attractive at 5%. We anticipate robust demand for
the motorcycles market (to achieve a record year of 700K units (+11%) in 2025, with Yamaha holding the lion’s share of
50%) as its target customers, i.e. the B40 & M40 groups, will be spared the impact of the impending RON95 subsidy
rationalization i.e. which to be priced in a two-tier system in June 2025 whereby the T15 group will be confined to only
unsubsidized pricing.
This section is intentionally left blank.
Automotive
ESG Thematic
Sector Update
28 March 2025
Page 6 of 8
EV Day: EVs Charging Ahead
Source: Kenanga
Automotive
ESG Thematic
28 March 2025
Page 7 of 8
Peer Table Comparison
Name
Rating
Last Price
(RM)
Target Price
(RM)
Upside
Market Cap
(RM m)
Shariah
Compliant
Current
FYE
Core EPS (sen)
Core EPS Growth
PER (x) - Core
Earnings
PBV (x)
ROE
Net.
Div.
(sen)
Net Div
Yld
1-Yr.
Fwd.
2-Yr.
Fwd.
1-Yr.
Fwd.
2-Yr.
Fwd.
1-Yr.
Fwd.
2-Yr.
Fwd.
1-Yr.
Fwd.
1-Yr.
Fwd.
1-Yr.
Fwd.
1-Yr.
Fwd.
Stocks Under Coverage
BERMAZ AUTO BHD
MP
1.17
1.00
-14.5%
1,358.4
Y
04/2025
13.4
15.3
-55.6%
13.7%
8.7
7.7
1.6
17.4%
16.8
14.4%
DRB-HICOM BHD
MP
0.685
0.850
24.1%
1,324.1
Y
12/2024
6.4
8.1
109.1%
26.2%
10.6
8.4
0.1
1.2%
2.0
2.9%
HIL INDUSTRIES BHD
OP
0.760
1.00
31.6%
252.2
Y
12/2024
13.9
14.2
9.5%
1.7%
5.4
5.4
0.5
9.3%
3.0
3.9%
HONG LEONG INDUSTRIES BHD
OP
13.90
15.90
14.4%
4,557.8
Y
06/2025
132.7
136.5
26.6%
2.8%
10.5
10.2
1.8
18.1%
70.0
5.0%
MBM RESOURCES BHD
OP
5.40
6.90
27.8%
2,110.9
Y
12/2024
86.8
88.0
1.9%
1.4%
6.2
6.1
0.8
12.9%
45.0
8.3%
SIME DARBY BHD
OP
2.22
2.50
12.6%
15,098.2
Y
06/2025
20.1
20.8
7.5%
3.4%
11.0
10.7
0.8
7.0%
13.5
6.1%
TAN CHONG MOTOR HOLDINGS BHD
UP
0.320
0.300
-6.3%
215.0
Y
12/2024
(27.6)
(24.4)
-179.8%
-188.6%
N.A.
N.A.
0.1
-7.7%
1.0
3.1%
SECTOR AGGREGATE
24,916.6
5.2%
6.1%
10.9
10.3
0.6
5.8%
6.3%
Source: Kenanga Research
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Automotive
ESG Thematic
Sector Update
28 March 2025
Page 8 of 8
Stock Ratings are defined as follows:
Stock Recommendations
OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10%
MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%
Sector Recommendations***
OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10%
NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%
***Sector recommendations are defined based on market capitalisation weighted average expected total
return for stocks under our coverage.
This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not
make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the
specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This
document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees.
Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document
or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or
employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or
otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Kenanga Investment
Bank Berhad being a full-service investment bank offers investment banking products and services and acts as issuer and liquidity provider
with respect to a security that may also fall under its research coverage.
Published by:
KENANGA INVESTMENT BANK BERHAD (15678-H)
Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia
Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: research@kenanga.com.my
