Published on August 24th, 2019 | by Daniel Sherman Fernandez0
Electric Cars Fact, Only For Rich Countries
Where there is excess money there will be electric car ownership taken seriously….not yet for Malaysia.
Statistics from the ACEA (European Association of Manufacturers) show that the electric car does not break through in low-income European countries. 80% of sales are in 6 countries.
In Norway, the Netherlands and Sweden serve as an exception in the electric car market in Europe. These are the only countries where their market share exceeds 5% (including plug-in hybrids).
The so-called “rich” countries like Austria, Germany, Belgium, Denmark, France, Finland, Portugal, the United Kingdom and Switzerland have a rate between 2% and 5%, with an average of 3.5% exceeded only by those whose average income exceeds €42,000 (RM220,000 which is far higher than the average income for the Malaysian household). For all the others, it is a much low figure.
For some countries, it is even close to 0 sales and ownership. For example, in Latvia, there were only 93 electric cars sold in 2018. Poland only had 0.2% electric car ownership, Slovakia a little higher at 0.3% and Greece also had just 0.3% ownership. ACEA sees a correlation with the level of income of their inhabitants, given the price of electric cars on the market and the subsidies that each country awards to them.
The market share of electric cars for the whole of the European Union sits at just 2%. And 80% of all electric cars sold on the continent are in only 6 countries with high income population.
So, does it make sense to push electric car ownership in Malaysia?
An actual real world transition to electric driving would not start for another 8-10 years we believe.
The transition will really happen when the fully electric vehicle (BEV) market share will keep growing when the following incentives are removed:
- The exemptions of sales/import tax and road tax for EV’s have to go.
- Petrol and Diesel subsidies have to end.
- Access to the city center should be free to electric vehicles with a special number plate and petrol and diesel vehicles will need to pay a fee.
- Removal of tax subsidies for all other types of vehicle sold in Malaysia.
Must also take into consideration the Malaysian Department Of Environment having a renewable program for EV batteries and also safe EV battery disposal program with monthly audits.
Please share your thoughts and comments with us.