EV Adoption To Rise On Affordable Models, Better Charging Infrastructure -- HLIB

KUALA LUMPUR, July 10 (Bernama) -- The electrification trend in the automotive sector is expected to accelerate in the second half of 2026 (2H 2026), supported by more affordable electric vehicle (EV) models and expanding charging infrastructure, said Hong Leong Investment Bank Bhd (HLIB).

In a research note, the investment bank said EV sales between January and May this year have reached 25,500 units, raising its market share to 8.1 per cent, compared to 3.8 per cent in 2025.

It said the EV market is set to be reshaped by the Ministry of Investment, Trade and Industry's (MITI) revised Completely Built-Up (CBU) EV policy, effective July 1, 2026, which limits imported EVs to models with a minimum Cost, Insurance and Freight (CIF) value of RM200,000 and a minimum motor power output of 180 kilowatt (kW). 

"While this reduces the availability of affordable CBU EVs, original equipment manufacturers (OEMs) can still localise production via Completely Knocked Down (CKD) assembly. 

"Overall, the policy is expected to benefit national OEMs, particularly Proton and Perodua," it said.

Meanwhile, HLIB said the total industry volume (TIV) in 2026 is projected to remain resilient at 780,000 units, supported by new model launches, an accommodative interest rate environment, and continued competitive sales campaigns.

The investment bank said competition among OEMs is likely to intensify as Chinese OEMs expand their presence through competitively priced products, putting pressure on established Japanese, Korean and European OEMs. 

“Nevertheless, national marques are expected to retain their dominant market share, supported by their affordable model range and extensive dealer networks," it said.

Therefore, HLIB maintained its 'overweight' call on the automotive sector, on the back of resilient earnings and attractive dividend yields across the companies under their coverage.

-- BERNAMA