Malaysia Unveils Proton e.MAS7 to Compete with Chinese EVs

Malaysia has introduced its first locally produced electric vehicle, the Proton e.MAS7, aiming to compete in the growing Southeast Asian EV market. As Chinese manufacturers pivot to the region due to high tariffs in the US and EU, Malaysia’s new entrant faces significant competition.

Proton’s e.MAS7 is part of a strategic move to ensure local brands can thrive amid an influx of foreign EVs. The shift in Chinese focus is driven by tariffs imposed by the US and EU, pushing Chinese EV makers to explore markets like Southeast Asia.

Malaysia Enters the Electric Vehicle Market:

Malaysia has unveiled its first home-grown electric vehicle, the Proton e.MAS7, as the country positions itself to compete in the burgeoning Southeast Asian electric vehicle market. This move comes amid a surge in Chinese EV manufacturers targeting Southeast Asia due to high tariffs imposed by the US and the European Union.

Specifications of the Proton e.MAS 7:

Proton’s Strategic Launch of e.MAS7

Proton, the national carmaker, introduced the e.MAS7 on Friday, marking a significant milestone in Malaysia’s automotive industry. The launch is part of the government’s broader strategy to strengthen local automotive firms against the increasing influx of foreign electric vehicles.

Tariffs Drive Chinese EV Makers to Southeast Asia

The backdrop for this development is the recent tariffs imposed by the US and EU on Chinese EVs. In May, the US enforced a 100% tariff on electric vehicles imported from China, escalating the ongoing tech and trade conflict between the two superpowers. Following suit, the EU imposed tariffs of up to 38% on three major Chinese brands—BYD evs, Geely, and SAIC—effective from July 4, citing unfair subsidies from Beijing that threatened the European EV market.

Growing EV Sales in Southeast Asia

This shift has prompted Chinese carmakers to seek new markets, particularly in Southeast Asia, where regulations are favorable, and partnerships with local companies are already established. According to Maybank Investment Bank, this trend is likely to boost EV sales in countries like Malaysia and Indonesia.

Clarification on Proton’s e.MAS7 Design

Before its official launch, there was widespread speculation that Proton’s e.MAS7 was merely a rebranded version of an SUV model from Geely, which holds a 49.9% stake in Proton. However, Proton executives have refuted these claims, asserting that the e.MAS7 was uniquely designed for the Malaysian market.

Future of Malaysia’s Domestic EV Market

Meanwhile, Perodua, Malaysia’s largest domestic carmaker by sales volume, has yet to release its electric vehicle. The company’s CEO, Zainal Abidin Ahmad, mentioned in May that their EV model is 60% complete and is expected to be available in 2025 for under 100,000 ringgit (approximately $21,000).

Surge in Malaysia’s EV Demand

Malaysia witnessed a substantial increase in electric vehicle demand in 2023, with sales soaring by nearly 290% to 10,159 units, compared to just 2,631 units in the previous year. However, the aggressive push by Chinese EV makers in Southeast Asia has sparked concerns over steep discounts offered to boost sales, particularly in Thailand. This has led to complaints from early adopters who paid higher prices.

Regulatory Oversight in Malaysia

In response, Thai authorities have launched an investigation into these practices, while Malaysia’s regulatory framework, which requires car pricing approval from the automotive business development committee, may help prevent similar issues. According to Shahrol Azral Ibrahim Halmi, president of the Malaysian EV Owners Club, this regulatory oversight helps stabilize prices and manage financial risks for institutions involved in the automotive sector.