The rise in conventional internal combustion engine (ICE) vehicles emitting carbon as they are driven around will only worsen air quality which is already in a perilous condition according to a report by the United Nations which states that about two billion children live in areas where outdoor pollution exceeds minimum air quality guidelines.
Against this backdrop and to make sustainable transport a reality, there must be buy-in from the nation’s transport sector. This means tapping into the vast private consumer market and leveraging on the growing corporate vehicle fleet market.
Fleets are vital in building greater understanding and confidence in electric vehicles (EVs), including full battery and plug-in hybrid electric vehicles (PHEVs), providing drivers prolonged hands-on time to fully experience the performance benefits and realise the potential of their investment.
Today, we examine the four key aspects to achieving success in popularising the fleet and private use of EVs - affordability, model variety, access to charging and the strength of the surrounding EV ecosystem.
Fleet and private usage of EVs have flourished in China and the US with nearly 400,000 electric cars between the two nations. This is thanks to an optimum combination of these four aspects creating a diverse range of green vehicles that are reasonably priced and capable of travelling long distances supported by strong charging infrastructure.
To emulate this success in Malaysia, there is a pressing need to address these aspects in a strategic manner to ensure the holistic development of the EV market.
Affordability
In terms of pricing, falling battery cost, which are projected to drop below USD100/kWh (RM420/kwh) by 2020, supported by tax incentives introduced by the Government for domestically manufactured green transport are seeing these vehicles steadily become more attractive to the mass market.
Eclimo ES-11 electric scooters being used in Malacca.
Model variety
The past year has seen an influx of plug-in hybrids introduced into the Malaysian market by world leading automotive brands including Mercedes-Benz, Volvo and BMW bringing the line-up offering in Malaysia to over 15 models.
At the recently concluded 7th International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM 2016), this variety increased further with the launch of the locally assembled Mercedes-Benz C350e plug-in hybrid that would be ideally suited to the needs of corporate fleets representing a perfect blend of stylish elegance and eco-friendly efficiency.
A charging station for two cars at a shopping centre in Petaling Jaya.
Charging infrastructure
To effectively address drivers’ range anxieties, one of the main concerns drivers have when considering switching to EVs, and make it more feasible for them to travel long distances, Malaysian Green Technology Corp (GreenTech Malaysia) which operates Malaysia’s largest network of EV charging stations, ChargEV, tied-up with Petronas Dagangan Bhd, the nation’s leading retail petrol station operator.
The two organisations will work together to further expand the network by installing ChargEVs at 66 Petronas service stations along major highways.
To make this network available to private users, BMW Group Malaysia has launched the ChargeNow service in partnership with GreenTech Malaysia to enable BMW’s growing base of PHEV owners to use the increasing number of ChargEV stations around the country.
To replicate this outreach, discussions are also ongoing with other car makers to extend similar services to a wider user base.
Overall ecosystem
Looking to the future, the corporate EV fleet ecosystem is poised to expand further with the introduction of the Tesla leasing programme.
GreenTech Catalyst, a subsidiary of GreenTech Malaysia, is partnering with Insas Bhd and its subsidiary, PRAC Logistics to form a joint-venture company that oversees the leasing of the Tesla Model S, one of the world’s popular EV.
The vehicles will be made available to government companies, government-linked companies, corporate members and public listed companies, to allow key decision makers to experience the benefits of EVs on a long-term basis with an overarching objective of converting them to EV enthusiasts and championing supportive policies and incentives for EVs in Malaysia.
Conclusion
The successful incorporation of EVs through Cohesive Mobility Solutions’ (COMOS) burgeoning Renault Zoe corporate leasing programme and the Eclimo ES-11 electric scooter fleets at the police and KFC, coupled with the strong foundation that these new partnerships have laid, place Malaysia in a prime position to join the leading pack of nations in the EV movement.
This is vital as sustainable transport such as EVs and PHEVs provide greater fuel efficiency and not only helps individuals save cost in the long run but also reduces pollution creating cleaner and healthier skies for all Malaysians.
GreenTech CEO Ahmad Hadri Haris.
The BRT bus plying a sector of Petaling Jaya is fully electric.
As these initiatives begin to gain traction, private and fleet usage of EVs will rise in tandem and this could spell significant economic benefits for not only the individuals and companies but for the nation as a whole.
For our final chapter in the series, we will examine this vast economic potential on all levels to detail the knock-on effects a thriving EV economy can have.
> GreenTech Malaysia is an organisation under the purview of the Ministry of Energy, Green Technology & Water (KeTTHA) charged with the development and promotion of green technology. For feedback, email info@greentechmalaysia.my or visit www.greentechmalaysia.my for more information.
