The Kia Niro EV shows just how bad EV depreciation can get in Malaysia.
Electric vehicles get plenty right – they’re quieter, more torquey and to some degree pollute less than their ICE equivalents. However, there’s measure where they have a serious disadvantage and that’s in resale value. Take this Kia Niro EV, for example.
We found this relatively new example (1-year old, 3,000+km on the odometer) listed on mudah.my by KH Automotive – a used car dealer whose company has been verified by mudah.my. It’s listed on the seller’s page for just RM139,800. Bear in mind that this car was launched in Malaysia in July 2023 for around RM256K, meaning it has lost 45% of its value in just about a year… Given that its listed mileage is 3000+ kilometers, it’s safe to assume that this depreciation doesn’t even come from wear and tear either.
That’s RM116,200 that has vanished into thin air in less than 2 years. If the car was registered during the launch month of July 2023, and was listed just this month at that price, it has essentially lost RM7,000 a month just by existing.
And it’s not as if this isn’t a good EV either. Kia offers a solid 8-year/160,000km battery warranty just like any of its rivals. It has a WLTP range of 460km, which is also more than usable for daily or even the odd interstate commute. It has 201hp and 255Nm of torque, which is enough for a but of fun. Plus it has 11kW AC charging, which beats anything by BYD (those cap out at 7kW). Its 80kW DC charging capability is not exceptional but is still good enough for a quick charge up from 10% to 80% in 49 minutes.
It’s not at all a bad EV, just going by specifications. So, is it a design thing? Maybe, but that’s subjective. One man’s trash is another man’s treasure. The real reason for the severe depreciation may be down to unknown risk factors attached to EVs, plus other market factors.
All EVs in theory should require less maintenance than their ICE counterparts. There are fewer moving components and fewer chances of neglect affecting condition. After all, there’s no engine or gearbox oil to regularly change. That being said, there’s a big unknown factor to maintenance costs given how new these kinds of vehicles are. Hybrid vehicles have shown us that electrification can mean some HVAC items become more expensive than they normally are on ICE vehicles. The market has to adjust to these unknowns and in the mean time used car dealers are only willing to shoulder this unknown risk if the price is low enough.
The other factor is the cut-throat nature of the EV market. Brand new EVs from China are coming in every other month and each seem to offer more for less. The Xpeng G6 from Bermaz is a clear demonstration of this as it outdoes the Kia EVs that are also brought in by Bermaz but for a much lower price point.
So, should you buy a Kia Niro EV for this revised price point of RM139,800? Well if the warranty still holds and you get it inspected for potential accident damage, then it’s a solid choice that will outperform just about anything around that price point in most aspects.
By the way, the Kia Niro EV is no longer offered by Bermaz. Their current EV line-up consists only of the EV6 and EV9. Daniel has driven the Kia Niro, and you can find his review here if you want to decide if buying it used for this price is a good idea.
