Watch this space as a price war for electric cars gather momentum this year
Yes, it is coming and and it will be so contagious that some car brands might have to sit and wait it out.
For most of 2023 we have seen news on how new electric vehicles were being launched with high impressive booking numbers. Premium and not so premium brands were releasing news on impressive booking numbers and then came news on the first run delivery numbers.
Management teams were rushing to meet the principals in the factories asking for increased stocks to fulfill rising demand and some were unable to secure more stocks to be delivered almost immediately due to rising demand in other countries (especially Asia Pacific nations).
As the months progressed, this ‘hot’ news suddenly sort of trickled down to product news only. Awards being won (mostly bought to increase awareness), expansion of dealerships and wonderful media coverage.
Months later we found showroom sales people and dealers (not the distributors) sharing their frustration with us on the falling bookings. So what happened?
The early momentum was started by eager fans of the electric vehicle concept.
Let us explain. The Malaysian governments decision to offer import duty free status for full electric cars allowed private importers to rush to Japan, Hong Kong, England and even Australia to buy up what ever electric vehicles was available to ship back to Malaysia.
With Zero factory back up in terms of after sales and warranty, they managed to clear their first batch of electric vehicles with super high profit margins.
Meanwhile, official car distributors needed time to get their overseas factories to produce and send them shiny new EV’s with full factory warranty and after sales. It arrived in batches and buyers were eagerly waiting. Prices were attractive and the ‘peace of mind’ motoring was 100% included.
However, these shiny new EVs were coming in in small batches from the factory as global demand was also rising.
Then new EV brands and models were being introduced month after month and with very attractive prices and this will continue with more aggression in 2024.
2024 will start with the arrival of MG4 electric car and its estimated selling price will be from RM108k and this will follow with the Chery Omoda 5 electric SUV which is estimated to be priced from RM128k.
Both the above electric vehicles have good driving range and loads of cabin and technology features and this will push immediate rivals from China and Korea to reduce their prices to keep their electric vehicles selling.
This will push the start of an EV price war in Malaysia and we will see buyers benefiting and early owners experiencing very high depreciation.
