AUTOS
[%rFIX%] [%UDGv%] 
Research by CGS
Neutral

“BEVs in Malaysia – a cost analysis”

Based on a sample size of 273 vehicles covering all major auto brands in Malaysia (Fig 1), we estimate that hybrid vehicles, such as hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV), are on average 14.4% and 22.9%, respectively, cheaper to own/use vs. petrol internal combustion engine (ICE) vehicles. Battery electric vehicles (BEV) are also 11.0% cheaper to own/use despite significant battery replacement costs. In our scenario analyses, where we vary charging costs and annual travel distances, our base case conclusion holds true, except if users travel significantly less distance each year. Our cost analysis employs an equivalent annual annuity (EAA)-to-vehicle price ratio and represents the percentage a buyer will spend on a vehicle each year relative to its initial cost price; this method allows us to account for different vehicle: 1) lifespans, and 2) prices.

Analyst(s):
Jeremy MOK
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Prem JEARAJASINGAM
[%BHPT%]
Jacquelyn YOW
[%ZsLU%]

AUTOS
$KLSE-BAUTO $KLSE-SIME 
Research by CGS
Neutral

“BEVs in Malaysia – a cost analysis”

Based on a sample size of 273 vehicles covering all major auto brands in Malaysia (Fig 1), we estimate that hybrid vehicles, such as hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV), are on average 14.4% and 22.9%, respectively, cheaper to own/use vs. petrol internal combustion engine (ICE) vehicles. Battery electric vehicles (BEV) are also 11.0% cheaper to own/use despite significant battery replacement costs. In our scenario analyses, where we vary charging costs and annual travel distances, our base case conclusion holds true, except if users travel significantly less distance each year. Our cost analysis employs an equivalent annual annuity (EAA)-to-vehicle price ratio and represents the percentage a buyer will spend on a vehicle each year relative to its initial cost price; this method allows us to account for different vehicle: 1) lifespans, and 2) prices.

Analyst(s):
Jeremy MOK
jeremy.mok@cgsi.com
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com
Jacquelyn YOW
jacquelyn.yow@cgsi.com