Bumps in Perodua’s EV march

PERUSAHAAN Otomobil Kedua Sdn Bhd’s (Perodua) first national electric vehicle (EV), initially promised as an “affordable vehicle”, may end up being a car of luxury.

Priced at RM80,000 and paired with a RM275-a-month battery subscription, the QV-E is already Perodua’s most expensive model, raising questions over whether its mass-market base can truly afford it.

Still, the launch of the QV-E marks an important step for Malaysia’s auto industry.

Beyond the price tag, Perodua has invested RM800mil into its EV programme – its most ambitious investment since 1993.

Perodua is targeting 50% local content for the EV by early 2026 and expects this to rise to 70% by 2030.

At present, 52 Malaysian vendors are participating in the QV-E ecosystem, with the number expected to grow to 70 in the next five years.

Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad says the company is prioritising components such as EV battery packs, the motor and transaxle, and the intelligent power distribution unit for local production over the next few years.

“The 52 vendors are upgrading their knowledge, expertise as well as investing in machinery in contributing to this target,” he notes.

Asked about key collaborations in the QV-E’s development, Zainal Abidin says Austria-based Magna Steyr is the consultant for the car’s platform.

“Magna Steyr is also the world’s first vehicle contract manufacturer to produce a wide range of powertrain technologies in a single plant: from conventional drives to plug-in hybrids and all-electric vehicles, sometimes even on the same production line,” he explains.

He adds that Perodua is working with Magna Steyr and other partners to boost local inclusion in other segments of EV production.

For the battery system, Zainal Abidin says Perodua has engaged China’s Contemporary Amperex Technology Co Ltd (CATL).

During his speech at the launch, Zainal Abidin said the local vendor base remains central to the company’s long-term EV strategy.

“This year alone, we expect to spend RM11bil on local purchases. Since Perodua was established in 1993, we have spent a total of RM116bil on components from local suppliers,” he said.

He added that Perodua expects total vehicle sales this year to exceed 359,000 units, maintaining its position as the second-largest automobile manufacturer in Asean.

A milestone beyond the price tag

Perodua’s investment underscores the significance of the QV-E, but industry observers see the launch as more than just a new model hitting the roads.

Veteran auto journalist Yamin Vong believes the QV-E is a bigger milestone than just an EV launch.

He says the QV-E marks Perodua’s first “truly Malaysian-made” car.

“That means this car is completely Perodua. They don’t have to ask for any permission to sell this car anywhere in the world,” he adds.

“This is really our own national car.”

He describes the launch as “a real turning point for Malaysia auto industry,” especially at a time when regional players like Vietnam’s VinFast Auto Ltd are still struggling to break into global markets.

However, he cautions that affordability remains a stumbling block.

“To attract (the) mass market, RM60,000 can do. Not RM80,000. The B40 may not be able to afford,” he says.

Even so, he acknowledges that the pricing is “not a mortal error”, calling the QV-E a starting point for Perodua.

“It’s a high price point but I think it’s okay. We’ve got to give them some space to grow the brand,” he adds.

Yamin points out that Malaysia’s charging network is still insufficient to support sudden mass adoption of EVs.

As such, he says Perodua’s approach of targeting “a small volume surface and slowly growing it organically” seems realistic.

Affordability concerns but supply-chain optimism

An analyst covering the automotive sector is cautious about the QV-E’s affordability but remains upbeat on its potential impact on the local supply chain.

The analyst says the RM80,000 price tag may limit mass-market appeal, noting that it would be Perodua’s most expensive model to date.

“Plus, the battery leasing fee of RM297 a month adds up to about RM32,000 over nine years, which really pushes up the total cost.”

The analyst adds that Perodua’s customer base, particularly B40 buyers, may find a monthly commitment of over a thousand ringgit difficult to justify.

“On top of that, the battery leasing set-up could make people worry about the car’s resale value and be an added hassle when selling or transferring ownership later.”

On a brighter note, the analyst says Perodua’s entry into EVs could help nudge the local industry towards an EV-focused supply chain, even if the impact will start modestly given the initial production scale.

Perodua is targeting to ramp up its EV production to 2,500 units per month from an initial 500 units per month.

The biggest unknown: CBU EV taxes

The competitiveness of Perodua’s EV will also hinge on Malaysia’s tax structure for fully imported EVs.

At present, there is also a floor price for new fully-imported or completely built-up (CBU) EVs – part of the policy to protect local manufacturers – set at RM100,000 and expires at the end of this year.

Import and excise duty exemptions for CBU EVs will end while incentives for locally assembled or completely knocked-down (CKD) EVs remain until end-2027.

The government has not yet announced the duty structure once CBU exemptions lapse.

For Perodua, this decision could be pivotal.

If CBU EVs become significantly costlier after duties resume, the QV-E’s price point may no longer look as steep – especially against aggressively priced Chinese EVs that have dominated the market in the past two years.

Until then, the success of Perodua’s first EV rests on more than just price.

It will depend on policy clarity, vendor readiness and whether Malaysians are finally ready to embrace a homegrown electric car.

As for current bookings, Perodua’s Zainal Abidin says the group is still compiling numbers since the launch on Dec 1, with a firmer figure expected by the end of the month.

He adds that the company is working to convert earlier expressions of interest into actual bookings.