KUALA LUMPUR, Jan. 29 (Xinhua) -- Maybank Investment Bank said Tuesday that Malaysia's automotive industry is transitioning, driven by the rise of electric vehicle (EV) players, with current investments focused on downstream areas such as showrooms and service centers, alongside a growing interest in EV assembly.
The research house said in a note that the expiration of completely built unit EV incentives is expected to boost local sourcing, creating upstream opportunities in the EV supply chain.
Meanwhile, Maybank has identified four key EV investment hotspots in Peninsular Malaysia, namely Perlis, Perak, Pahang, and Johor.
It opined that local auto parts players can capitalize on the EV transition through technical partnerships and upskilling to expand their customer base and access global supply chains.
While global consolidation among traditional original equipment manufacturers (OEMs) is expected to create ripple effects, impacting local automotive players, the research house highlighted that Malaysia's auto market remains resilient, dominated by national marques like Perodua and Proton, which account for nearly two-thirds of total industry volume.
This presents a dual challenge for Japanese automakers, competing against both national brands and emerging players, it added.■