Malaysia Braces for Slower EV Demand Growth in 2026, Apex Securities Warns

Apex Securities has forecasted a slowdown in electric vehicle (EV) demand growth in Malaysia for 2026, citing economic uncertainties and infrastructure challenges.

This prediction comes amid a global shift towards sustainable transportation, but local factors may hinder progress in the Southeast Asian nation.

Understanding the Forecast

According to the report, EV sales growth could drop to single digits, a stark contrast to the double-digit increases seen in previous years.

Apex Securities attributes this to rising interest rates and supply chain disruptions affecting battery production.

Historically, Malaysia's EV market has grown rapidly since the government's 2021 incentives, boosting adoption among urban consumers.

Economic Impacts on the Horizon

The slowdown could impact automotive manufacturers and related industries, potentially leading to job cuts in the sector.

Consumers may face higher prices for EVs due to reduced economies of scale, delaying the transition from fossil fuel vehicles.

Looking ahead, experts suggest that improved charging infrastructure and policy adjustments could revive growth by 2027.

Malaysia's EV targets aim for 15% market share by 2030, but this forecast raises doubts about meeting those goals.

Global Context and Future Outlook

In comparison, neighboring countries like Thailand have seen steadier EV growth thanks to stronger incentives and investments.

For more details, visit the original report on TechNode Global.

Industry analysts recommend that Malaysia invests in renewable energy to support EV expansion and mitigate the predicted slowdown.