AVIS Malaysia CEO Shares Insights on EV Trends and Adoption
In an exclusive interview, Mohd Syahrul Bin Yusuf, CEO of DRB-HICOM EZDrive Sdn Bhd (AVIS Malaysia), discusses the evolving landscape of electric vehicles (EVs) in the car rental and leasing industry. He offers valuable perspectives on customer preferences, operational challenges, and the future of EV adoption in Malaysia and the ASEAN region. Responses have been edited for brevity.
Growing Interest in EVs
There has been increasing interest in EVs, especially with the recent introduction of EV models from PROTON and Perodua. However commercial vehicles – the hire and leasing sector for example – are also a significant market and should not be overlooked. When asked about trends in the hire and leasing business regarding EVs, Syahrul notes a rising interest, particularly among corporate clients and eco-conscious tourists. “We are observing a growing interest in electric vehicles among our customers, though adoption remains nascent,” he explains. “Corporate clients and eco-conscious tourists are driving most of the demand, particularly in urban centers like Kuala Lumpur and Penang where infrastructure is gradually improving”.
He also identifies two primary factors driving this interest:
- Curiosity and Experience: Many customers, especially tourists, are eager to try EVs for their novelty and advanced technology.
- Sustainability Choices: Increasing environmental awareness is influencing customer preferences, particularly among younger demographics and businesses committed to ESG goals.
Operational Challenges and Adaptations
Transitioning to EVs while managing traditional internal combustion engine (ICE) vehicles is likely to pose several challenges for AVIS Malaysia. Syahrul highlights the importance of upskilling workers, stating, “Our fleet teams, particularly mechanics and technical staff, are undergoing training to better understand EV maintenance and battery management.”
The transition also impacts the supply chain. “EVs introduce complexities in sourcing the vehicle, or even spare parts and electronic components,” Syahrul added. He expresses optimism about the recent introduction of the Proton eMas, hoping it will help bridge the gap in the domestic EV market.
Regarding maintenance, AVIS Malaysia employs a combination of in-house and outsourced services. According to Syahrul the company is actively retraining its in-house team for basic EV-specific systems while also relying on external authorized service centers and independent workshops with EV expertise.
Cost Efficiency and Future Outlook
Syahrul acknowledges the potential for cost savings with EVs due to their fewer moving parts and lower maintenance requirements. However, he cautions that battery replacement costs remain a significant consideration. “We anticipate significant cost efficiencies within the next 5-7 years as battery technologies improve and growing demand brings down replacement costs,” he predicts.
EV Adoption in Malaysia and ASEAN
Regarding the future of EV adoption in the region, Syahrul sees a gradual progression. He notes that government policies, such as tax incentives and infrastructure development, are helping, but challenges persist. Among these are:
- Limited charging infrastructure, especially in rural areas
- Higher costs of EVs compared to ICE vehicles
- Consumer concerns about EV range and reliability
- Growing interest in plug-in hybrid vehicles (PHEVs)
“In the next 5-10 years, we expect EVs to grow from their current niche position to a substantial share of new rentals, especially in the premium and urban-focused segments,” Syahrul projects. However, he anticipates that ICE vehicles will likely dominate the market until the mid-2030s, particularly in budget and rural markets.
In conclusion, Syahrul emphasizes AVIS Malaysia’s commitment to aligning their fleet and operations with sustainability goals while addressing the practical constraints of transitioning to New Energy Vehicles (NEVs) in a mixed-fleet environment.
This story is part of our coverage for the KL International Motor Show (KLIMS) 2024, which took place between 5-11 December 2024.
