KUALA LUMPUR, Sept 22 — The Klang Valley’s continuous traffic woes has sparked a boom in electric vehicle motorcycle demand as manufacturers recorded the highest sales in the six months of 2024 compared to the last five years combined, all thanks to the government’s attractive rebate programme.
The Malaysian Automotive, Robotics and IoT Institute (MARii), the agency that oversees the rebate disbursement, said it approved 3,664 applications up to June this year, handing out some RM8.7 million in rebates to eligible buyers.
As a proxy of sales, it said the number of electric motorcycles sold since the rebate programme was opened up for application on December 8 last year had topped the total sales made in the last five years, and that it reflected more openness towards choosing electric vehicles as a primary mode of transportation.
“In the first six months since the launch of MARiiCas in December 2023, a total of 3,664 applications have been approved, with rebates valued at RM8.79 million,” the agency told Malay Mail.
“This surge in electric motorcycle sales through the MARiiCas programme has already surpassed the combined sales of EV bikes over the past five years. It highlights a growing interest in electric mobility and aligns with the government’s vision of achieving net zero carbon emissions by 2050.”
Malaysia has one of the highest per capita fossil-fuel car ownership in the world, a result of public policies by past administrations that viewed the car industry as the catalyst to industrialisation.
South-east Asia’s third biggest economy had 1.72 passenger cars per household in 2019, according to the Department of Statistics Malaysia, putting it in the top 10 per cent globally.
The ratio would have likely increased as the pandemic forced the government to make cars cheaper. To keep the automotive industry afloat, Putrajaya waived excise duties while banks signed off car loans with record low interest rates.
Car manufacturers sold 720,658 new units in 2022 at the height of the Covid-19 lockdown, a record breaking year according to several news reports.
Consequently, traffic worsened and a growing number of owners who once preferred to drive to work have now turned to the more agile motorcycle as a way to glide through the heavy congestion.
One of the key policies under the energy transition roadmap is the push for more EV use. — Picture by Choo Choy May
“Frankly speaking I used to feel a bit embarrassed to ride a motorcycle. You know it’s being seen as the poor man’s vehicle,” said Wafie Arshad Othman, a civil engineer who was scouting for an electric motorcycle at a shop in Sentul, here.
“But the traffic in Klang Valley is really bad nowadays so I think it’s more practical, both economically and efficiency-wise, to use a bike. And I think I might as well take advantage of the RM2,400 rebate. I’m getting a decent motorcycle at a much cheaper rate.”
The government has made green energy one of its key economic agenda, pitching to investors an energy transition blueprint with the hope of raising over RM100 billion in investments as it bids to make Malaysia a major global player in clean energy technology and reduce reliance on fossil fuel.
One of the key policies under the energy transition roadmap is the push for more EV use. Under Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim announced various tax incentives to encourage EV purchases, including the rebate programme for electric motorcycles.
Meanwhile the encouraging rebate take-up has fuelled allegations that authorised electric motorcycle sellers have inflated prices to capitalise on the cash subsidy. MARiiCas said consumers can report sellers who attempt to profit from the rebate programme to the agency.
MARiiCas provides information about most of the electric motorcycles that are eligible for the RM2,400 rebate, including the base price of all models sold by the respective manufacturer that participate in the programme.
“The prices displayed on the official MARiiCas website represent the base price of the bikes before the RM2,400 government rebate is applied. It’s important to note that the final ‘on-the-road’ price includes additional mandatory costs, such as registration fees and insurance,” it said.
“However, the base price of these EV bikes — before these extra costs — must always match the figures listed on the MARiiCas platform. Any deviation will be promptly investigated to ensure that consumers are not subjected to unfair practices.”