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A worker inspects an all-electric EQS passenger car on an assembly line at a Mercedes-Benz manufacturing plant in Germany earlier this year. Photo: AFP
AsiaSoutheast Asia

As EV sales in Malaysia surge, Mercedes-Benz to roll out all-electric line-up by 2030

  • The luxury German carmaker says there’s ‘big demand’ for its all-electric offerings as its EV sales in Malaysia outpace the global average
  • It has one of the country’s biggest EV line-ups, with a focus on the high-end. But China’s BYD and Elon Musk’s Tesla want a slice of the pie, too
Malaysia
Bloomberg
Bloomberg
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Luxury carmaker Mercedes-Benz Group AG is targeting Malaysia as one of the markets where it will have an all-electric line-up by 2030, after earlier this year becoming the first carmaker to launch a domestically assembled electric vehicle in the Southeast Asian nation.

Sales of electric Mercedes in Malaysia have already surged 200 per cent this year – albeit off a low base – outpacing global growth of around 120 per cent in the first half.

And while fully electric cars account for about 11 per cent of the German carmaker’s global sales – their EV mix in Malaysia stands at around 30 per cent of their overall line-up.

A Mercedes-Benz 2023 EQS large electric luxury vehicle with an estimated range of up to 560km (350 miles). Photo: Courtesy of Mercedes-Benz USA via AP

“People are increasingly interested in EV vehicles, others are coming into the market, and there is big demand,” Bettina Plangger, Mercedes-Benz Malaysia vice-president, said in an interview last week.

“We are very optimistic that we can reach this target for Malaysia.”

Malaysia is focusing on developing an EV ecosystem and has offered incentives to boost adoption. The country has a target of having EVs, including hybrids, account for 15 per cent of total industry volume by 2030.

Tesla cuts Model Y prices in China as rivals’ EV sales gather pace

Two of the world’s biggest EV carmakers – BYD Co. and Tesla Inc – have both launched in Malaysia in the past year. However, Mercedes’ positioning in the premium end of the market avoids the increasingly crowded field, and its five models and seven variants means it already has one of the biggest EV line-ups on offer in the Southeast Asian nation.

Despite being locally assembled, the EQS 500 4Matic starts from 649,000 ringgit (US$142,000) – making it the most expensive EV in the Malaysian market.

By comparison, Tesla’s Model Y sport utility vehicle has a starting price of 199,000 ringgit, or about US$43,400, while BYD’s Dolphin EV starts at 99,900 ringgit and its flagship Atto 3 from 149,800 ringgit.

It’s not about price, but what can you offer your customers for that price
Bettina Plangger, vice-president of Mercedes-Benz Malaysia

Plangger said Mercedes is more focused on the “value” it’s able to provide customers as a luxury brand, instead of pricing considerations. The EQS comes with semi-autonomous driving, rear axle steering, and electrically adjustable rear seats with nappa leather seats.

“At the end, it’s not about price, but what can you offer your customers for that price,” Plangger said. “That is value. We go for the best technology, and we want to give our customers the best customer experience.”

Earlier this year, Mercedes’ key Malaysian retail partner Hap Seng Star, a unit of Hap Seng Consolidated Bhd., announced it had entered into an agreement with Mercedes-Benz Malaysia to switch its current showroom model to an agency model, which would give the carmaker more direct interactions with customers and also greater control on pricing.

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