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On February 17, 2023, customers took a test ride on the ORA Good Cat new energy vehicle in Kuala Lumpur, Malaysia.

"This is a good deal, I want a car that is real value for money," said customer Steven as he waited for delivery of the BYD electric car he had pre-ordered in Kuala Lumpur, the capital of Malaysia.

The Malaysian market has witnessed the accelerated overseas expansion of Chinese new energy vehicles, including electric vehicles. While Chinese companies have brought smart riding experience to local people, they have also provided technical and equipment support for the local green transformation.

New energy vehicles become an affordable option

Steven hesitated between the Tesla Model 3 and BYD Seal, but after months of deliberation he chose the latter. "The Model 3 is a beautiful and practical car... but in terms of functionality, space and design, the Seal ticks all the boxes. It was a logical choice."

Steven's choice is not uncommon in Malaysia. Since last year, BYD has become one of the best-selling new energy vehicle brands in the Malaysian market. But for ordinary Malaysians, BYD is still a considerable expense, and more affordable and compact new energy vehicles have entered the public's field of vision. The Great Wall Ora Good Cat, which looks like a classic beetle, is an important product of Great Wall Motors' localized production of pure electric vehicles overseas, and is currently attracting much attention in Malaysia.

Some commentators said that in Malaysia, owning a new energy vehicle is no longer a luxury, but an increasingly common and affordable option.

Walking into a Proton dealership in the center of Kuala Lumpur, in addition to seeing Proton's classic model Saga, the most eye-catching thing is the X90, Malaysia's first new energy vehicle newly launched by Geely and Proton.

The launch of Proton X90 means that the old Malaysian automaker is undergoing transformation. Proton has been developing in Malaysia for more than 30 years and can be regarded as a national brand. However, due to the lack of technical accumulation, it once encountered a development bottleneck and suffered losses for 9 consecutive years. After Geely Automobile acquired a stake 7 years ago, it continued to input technology and management into Proton, not only turning Proton from loss to profit, but also working with the latter to vigorously develop new energy vehicles.

In recent years, China and Malaysia have been continuously advancing cooperation in emerging fields such as green energy and electric vehicles. Tanjung Malim Automotive High-Tech Valley, 85 kilometers north of Kuala Lumpur, is considered to be an innovation valley jointly built by Geely and Proton. Both sides have introduced high-tech industries such as new energy and new materials, and deepened cooperation in the fields of automotive research and development, innovation, and parts.

In Kuching, the capital of Sarawak, Malaysia, the hydrogen energy smart rail project is being promoted. Its research and development team is CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. The first hydrogen energy smart rail train was tested in September last year. At present, green transportation has become an emerging tool for Malaysia's green transformation, helping to promote the net zero emission goal and promote the development of a green ecosystem.

Why do Chinese and Malaysian car companies choose each other?

According to data from the Malaysian Automotive Industry Association, the country's pure electric vehicle sales in the first half of this year reached 6,617 units, a year-on-year increase of 112%. Although the overall sales of new energy vehicles are not large, the growth momentum is strong. The entire market can be said to be a "blue ocean" with great potential for consumption upgrades.

Why do Chinese and Malaysian automakers choose each other? Malaysia's ambitious emission reduction plan provides a platform for the implementation of Chinese new energy vehicles. Malaysia is one of the largest oil producers and exporters in the Asia-Pacific region. In order to achieve sustainable economic growth, the Malaysian government has proposed to increase the proportion of electric vehicle sales to 38% by 2040 and plans to achieve net zero greenhouse gas emissions by 2050.

"The rise of Chinese new energy vehicles in the Southeast Asian market is influenced by multiple factors. In addition to the competitiveness of the new energy vehicle industry itself, the integrated development of the Chinese and Southeast Asian markets has greatly boosted the investment layout of Chinese automakers in the region. Due to the implementation of the Regional Comprehensive Economic Partnership (RCEP), the cost of integrating supply chain coordination has been greatly reduced. The adjacent geographical economic space and mature regional industrial chain supporting network will help reduce the cost of the industrial chain and improve the resilience of the supply chain." Wang Yuzhu, a researcher at the Shanghai Institute for International Studies, said in an interview with this reporter, "The strong and stable industrial chain supporting capabilities of the Chinese domestic market, coupled with convenient regional accessibility, can effectively achieve the 'economy of scope' effect of industrial chain integration for automakers investing in Southeast Asia."

Longi Green Energy is one of the latest examples of China-Malaysia energy cooperation. The company's battery assembly factory in Malaysia officially started production at the end of last year, forming a full industrial chain layout to provide green kinetic energy for local car companies. In this regard, Wang Yuzhu said, "From the perspective of the entire industrial chain process, it is very important to provide integrated supporting services for green travel. In the future, efforts in this direction can play the role of demonstration and model leadership for Chinese new energy car companies."

Author: Shen Qinhan

Text: Shen Qinhan Photo: Xinhua News Agency Editor: Liu Chang Responsible Editor: Zhang Yong

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