There’s something different about concept cars from national makes, as they preview something that many of us can potentially afford. They’re more significant, they conjure up more excitement.
Tasked by the government to come up with an affordable EV by a publicly announced deadline (no pressure!), Perodua started from scratch (unlike Proton, P2’s foreign partner Daihatsu does not have a suitable donor car), knuckled down, and delivered in style with the eMO-II concept that has made its debut at the Kuala Lumpur International Mobility Show (KLIMS) 2024.
The previous eMO (pronounced as M-O) was a 1:6 scale model unveiled in May 2023. This is a full-sized working prototype that Perodua president and CEO Datuk Seri Zainal Abidin Ahmad described as the second episode of P2’s EV journey. The third episode, he says, will be the production car that will surface next year – the company’s first-ever EV.
“This prototype is the continuation of our EV journey as we continue to build this technology from the ground up. eMO-II has been improved from its predecessor in terms of styling and features, and it’s now more defined as we chart our EV future,” he said, while reminding us that the eMO-II is still a prototype. “There are plenty of other features and improvements that we will add to our finished product,” Zainal added.
The eMO-II was fully developed in-house by Perodua’s R&D team and akin to being thrown into the proverbial deep end of the pool. “It has been a steep learning curve for our team as we have engaged numerous consultants to understand the inner workings of an EV, but I am happy to say that our team have managed to keep our timeline and be able to continue our story here today,” Zainal said.
It’s always wise to get help from experts in their field, and Bufori is amazing at finishing and painting. I knew that the automotive artisans were involved with the working prototype when I spotted Bufori founder Gerry Khouri and long-time right-hand man Felix Haller in the crowd this morning – they do some crazy work over at Kepong, which you can read about more here and here. The design is 100% Perodua though.
Malaysia doesn’t have a strong EV ecosystem, yet, which is why the production Perodua EV will have its motor, inverter and battery initially imported, but Zainal says that there’s a commitment to localise. The battery will be sourced from CATL, one of the top makers of EV batteries in the world.
Zainal said that Perodua is also working with several Malaysian corporations to ensure ‘greater mobility’ for all its customers. “Greater mobility means that we take into consideration all aspects of EV ownership to ensure that our customers find the car to be efficient, friendly and easy to use, complete with supporting infrastructure by Malaysia’s best.
“We understand that electrification goes beyond more than just a new way to drive but it represents our effort in fighting climate change by reducing our carbon footprint. We support this mission and will do our best to make this a reality,” he said.
Recently, P2 signed an MoU with charge point operator Gentari – a Petronas subsidiary – that will see the latter setting up charging facilities at Perodua service centres. The move is aimed at supporting Perodua customers in the transition to EVs.
The Perodua chief is also aware of the main concerns of carbuyers when it comes to EV adoption. The most commonly cited negative point is the perceived lack of charging points. Of late, many have also caught on to the fact that EV resale values are rather poor – depreciation is definitely much steeper than what we’re used to with ICE cars.
“We will make further announcements regarding the charging system as we plan to have an EV charging station every 40 to 50 km, whether it is a fixed permanent charger or a mobile charger, which is still under study. We are also looking at the resale value, as I mentioned before, we would like to maintain its second-hand value,” Zainal said at KLIMS yesterday.
Finally, price. Yes, EVs are everywhere in certain areas of the Klang Valley these days, and if you don’t venture beyond these upmarket neighbourhoods, you might start to think that we’re well on track to become Norway. But let’s not forget that Perodua has over the years consistently taken over 40% market share, which translates to four out of every 10 new cars sold. All of the market leader’s products are priced below RM80k. That’s how the overall Malaysian auto market looks like.
So affordability is still very much an issue when it comes to mass adoption of EVs, something Perodua has been tasked by the government to solve. The production eMO-II will be positioned between RM50,000 and RM90,000, Zainal said. He believes that even without the RM100k minimum price currently imposed on CBU EVs, P2’s EV will be the cheapest in Malaysia.
“Based on our study, in the first quarter of 2025, the other EV companies that are selling EVs now would not be able to sell at lower prices (than Perodua), since it might compromise other things. So for us, we still hope we can sell the cheapest EV around,” he added.
Let’s take a quick look at the bottom end of the current EV market. Currently, the cheapest EV in Malaysia is the Neta V at the floor price of RM100k. Sold with huge discounts, it can be had as low as RM75k. There are plans for CKD local assembly, which would lower the Neta’s RRP to the ‘market price’ (it starts from RM70k in Thailand). However, the Neta V is a super basic car that has questionable safety and looks awkward, to put it mildly, and overall, it’s well below the standards expected of a Perodua.
There are rumours that Proton has plans for a smaller, more affordable EV than the eMas 7 SUV. Word is that the ‘eMas 5’ will be based on the Geely Geometry Xingyuan, but Proton’s CKD journeys are typically leisurely, and in any case, the eMas 7 is ahead of the line. That SUV, which is still in the teaser phase, will be CBU at launch and will remain so for some time.
The Neta V’s eventual CKD price – if that project materialises – would be a benchmark for Perodua if it wants the production eMO to be the cheapest EV on sale. In our humble opinion, it’s better to have an affordable but well-equipped EV that meets the demanding needs of Malaysians (Peroduas are much better kitted than basic cars anywhere in the region except Singapore) rather than aiming to be the absolute cheapest of its kind. But perhaps they will have both ends covered – note the RM50k to RM90k range mentioned by Zainal.
The challenge for Perodua is that initially, the EV would not have great economies of scale with planned production of just 500 units a month, but if anyone can make this almighty challenge of a project work, it’s the quiet achievers from Rawang. Go check out the eMO-II for yourself at KLIMS 2024 and tell us what you think – full details here.
GALLERY: Perodua eMO-II Concept at KLIMS 2024
