Competition in EV space to intensify on policy shifts
The government will need to decide by year-end whether to end the completely-built-up EV import tax exemptions and Approved Permit regime, said BIMB Securities Research.
The decision will shape the competitive dynamics of the local EV market, either accelerating liberalisation and inviting more aggressive price competition or maintaining a controlled environment that protects local players.
Those with strong exposure to electrification, efficient sourcing structures, and high local content will be best positioned to navigate the transition, said BIMB Research.
While short-term demand risks persist, particularly from policy uncertainty and price volatility, credible reform execution could unlock medium-term growth and margin stability.
It retained its 'neutral' stand on the sector with a positive bias, favouring original equipment manufacturers aligned with themes of affordability, EV adoption and localisation.
It reiterated its 'hold' call on Sime Darby Bhd (with a target price of RM1.76 a share) and MBM Resources Bhd (RM4.30 a share).
It kept its 'sell' on Bermaz Auto Bhd (65 sen a share).
Despite all companies under its coverage having EV exposure, the research house liked Sime Darby for its robust EV portfolio (BYD, BMW) and resilient internal combustion engine (ICE) volumes via Perodua.
This balanced mix would ensure defensive earnings amid market transition and positions Sime Darby as a structural winner in both the ICE and EV spaces.
BYD slashed the price of its 2025 Atto 3 Ultra by RM44,000 to RM123,800, with a special launch offer of RM118,800 for early buyers, placing it in direct price parity with Proton's Emas 7 Premium (RM119,800).
This move has reignited speculation of an impending EV price war. It favoured controlled growth, as it aligned with the government's clear policy direction.
The extension of tax incentives for completely-knocked-down EV until end-2027 reinforced Malaysia's commitment to fostering local EV production, supply chain localisation and long-term industrial development, it said.
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