EV Ownership Risky, Battery Leasing Could Ease Depreciation Risks - Analysts

Automotive analyst Shamsul Yunos warns that owning an EV in Malaysia carries high risks due to rapid depreciation. EVs can lose nearly half their value in five years, compared with around 31 percent for petrol cars.

"The main issue is how fast battery technology is evolving. Each year brings new models with better batteries, leaving older EVs outdated and their resale value plunging," he told BH. 

Battery replacement costs can reach up to RM90,000 after warranties expire, deterring many used EV buyers.

Shamsul further stated that banks often treat EVs as high-risk because long-term battery performance data is scarce.

 "Lenders should assess battery health digitally, not just the car’s age. Data like charging habits and fast-charger usage can show the real risk. AI can help analyze this and set fairer loan rates," he added.

Shamsul also recommended longer battery warranties, guaranteed resale values, and leasing options to reduce buyer concerns. 

"Battery leasing, like what Perodua plans to offer, is a smart way to ease worries about new technology," Shamsul said.

Industry observer Keshvinder Singh echoed this, saying leasing can boost confidence and speed up the shift to green mobility.

“Leasing is the best way to boost consumer confidence and accelerate the shift to green mobility,” he told BH, noting that users wouldn’t have to worry about the car’s resale value or the high cost of replacing batteries.

Keshvinder also urged the government to fast-track the Lemon Law to protect buyers from unproven new EV brands.

“Some manufacturers already offer lease-to-own packages with guaranteed future value, but prices are still high. The government can help balance the market,” he said.

According to him, assessing the future value of EVs is tricky because battery technology is evolving so quickly. Some batteries now reach over 1,000 km per charge, though they remain expensive.

“However, for current EV owners, numerous small and medium businesses now provide battery replacement services, so costs are expected to gradually drop,” Kashvinder stated, emphasizing that support infrastructure is catching up as the market grows.

For the record, EV sales in Malaysia reached 30,573 units by June 2025, up 91 percent from last year, though EVs still account for just 3.4 percent of total vehicle sales. 

Proton leads the market with the eMAS 7, followed by BYD Sealion 7 and BYD Atto 3. The upcoming affordable Proton eMAS 5, starting at RM59,800, is expected to accelerate adoption further.

Source: BH.