Case 5: Tesla’s Entry and the evolving dynamics of the electric vehicle market in malaysia

The electric vehicle (EV) is widely recognized within the automotive industry as a pivotal technology for the future of vehicle power systems, as it helps reduce pollution and protect the environment. It has emerged as a key priority for major global car manufacturers and is anticipated to revolutionize road transportation systems. However, the adoption of EVs in emerging markets such as Malaysia is still low despite the targeted EV penetration in Malaysia being set at 38% by year 2040. This case study provides a comprehensive analysis of the current EV market in Malaysia, delving into various aspects such as current market trends and challenges specific to the Malaysian context. This study focuses on examining the challenges faced by EV automotive providers in the Malaysian market. The primary challenges identified include the insufficient EV charging infrastructure and the high costs associated with EV adoption. Furthermore, this study specifically focuses on the challenges that Tesla may encounter as a new entrant. Despite the challenges of inadequate charging infrastructure and high costs, the intense competition within the Malaysian EV market is thoroughly analyzed through a detailed evaluation. The case study provides valuable insights relating to challenges of the EV market in Malaysia, which facilitates the discussion of possible solutions to overcome the challenges.