It’s 2025, why are we still driving petrol cars?

At the time the government is thinking of removing petrol subsidies and some EV duty exemptions, maybe it is time to relook into electric vehicles.

Can Malaysian EVs Power a New Industrial Era?

Closer to home we are seeing momentum building—Proton has launched the Emas 7, and Perodua is set to debut its first electric vehicle (EV), both aligning with the goals of the New Industrial Master Plan (NIMP) 2030. The NIMP underscores the government’s commitment to developing a homegrown EV industry as part of broader efforts to cut carbon emissions. For us consumers this also included a cap, so no imported BEV (Battery Electric Vehicle) with a floor price under RM100,000 can be sold in Malaysia, an exemption period that fortunately should end this year. For reference, SAIC-GM-Wuling’s Binguo EV sells for under RM60k in Thailand and under RM94k in Indonesia—well below Malaysia’s current threshold.

Why are Chinese EV’s so cheap?

Chinese EVs are often seen as cheap, but that doesn’t necessarily reflect poor quality. Their lower prices stem from several key structural advantages. First, labour costs in China are significantly lower than in regions like Central Europe or the United States. Secondly, Chinese automakers benefit from domestic access to parts and raw materials. Most components and materials used in these vehicles are produced or extracted within China, helping to minimize transportation costs and avoid import duties. Globally, while Australia and Chile accounted for 71% of lithium mining by weight in 2024, China dominated downstream processing—controlling 55% of global battery production by value. This strategic control over the supply chain enables Chinese manufacturers to produce vehicles more efficiently and at lower cost. Another important—and often debated—factor is government support. Many of the Chinese car brands now gaining global attention are partially or fully state-owned. Since 2009, the Chinese automotive sector has received at least USD 231 bil (RM 1.1 tril) in subsidies, allowing manufacturers to keep consumer prices highly competitive.

5 Minutes to Full for Chinese EV

Globally, one of the latest developments is that two of the world’s leading battery developers has brought the charging time for an electric vehicle to just five minutes, both BYD and CATL are Chinese. It is a show of prowess that underscores just how far China has extended its global dominance over next-generation technologies, in some cases leaving the U.S. years behind. BYD says the superfast charging is made possible by an “all liquid-cooled megawatt flash-charging terminal system,” according to Bloomberg, plus a new, automotive-grade silicon carbide power chip. The combination should allow the vehicle to channel up to 1,000 volts of charge. But before you get excited, these megawatt charging stations will be very expensive to install and therefore bring higher charging prices. Locally in Malaysia we are also still short on our EV infrastructure. While the government targets 10,000 charging points by 2025, the rollout has been slow, with private operators seeking clearer revenue models before scaling investments. EV-to-charger ratio currently stands at 1:11. To hit a ratio of 1:8 and support 740,000 EVs (20% market share target) by 2030, 92,000 chargers are needed nationwide requiring significant policy support and private-sector participation.

Why reject the cheap Chinese EVs?

In the early 1800s, British economist David Ricardo introduced a big idea that still shapes global trade today: countries should specialize in what they’re relatively better at and then trade with others. This idea, known as comparative advantage, explains why trade can benefit everyone—even when one country seems to do everything better.

For example, Ricardo imagined Portugal being more efficient than England at producing both wine and cloth. Still, he argued both countries could gain if Portugal focused on wine and England on cloth. Trade, he said, would allow both to end up with more of both goods.

This principle has been a cornerstone of modern economics. It suggests that free trade increases total production and gives consumers better access to cheaper goods. But it also rests on a big assumption: that workers and communities can easily adjust when industries shift across borders. That’s often not the case.

Economist Joseph Schumpeter once warned against relying too heavily on “simplifying assumptions.” Trade works best when its benefits are widely shared. If not, frustration grows—something we’re seeing globally with the rise of protectionism and economic nationalism.

For Malaysia, the challenge is to find a balance: to benefit from global trade, while also ensuring that the gains support local development, good jobs, and long-term resilience. The EV race isn’t just about who builds the cars—it’s about who builds the future economy.