THE GLOBAL AUTOMOTIVE landscape is undergoing a dramatic shift, with electric vehicles (EVs) rapidly gaining traction. One evident phenomenon is the genesis of a merger discussion between long-time Japanese automakers due to investment in electrification (which ended at the beginning of February 2025) and powerful newcomers in EVs, like Tesla and BYD. While four-wheeled EVs often dominate the conversation, the potential of two-wheeled electric vehicles (2WEVs), particularly e-motorcycles, presents a compelling solution, especially in densely populated urban environments.

The Evolving EV Landscape In SEA

EVs are gaining significant traction in Southeast Asia. Frost & Sullivan (2018) found that one in three people in the region are considering EVs as their next car. However, Deloitte’s 2023 Global Automotive Consumer Study reveals a more nuanced picture. Traditional internal combustion engine (ICE) vehicles still dominate, particularly in Malaysia (58%), Indonesia (59%) and the Philippines (72%). Singapore, with its strong government support and urban environment, stands out with the lowest ICE preference (34%) and the highest for hybrid electric vehicles (HEVs-36%). Thailand leads in battery electric vehicle (BEV-31%) preference, followed by Vietnam (19%) and Singapore (13%). These varying preferences highlight the diverse factors influencing EV adoption across the region, from infrastructure readiness to consumer attitudes and government policies.

The Malaysian government has been promoting EV adoption through various incentives. These include tax exemptions for EV imports and rebates for charging infrastructure installation, as outlined in the Low Carbon Mobility Blueprint (LCMB) 2021-2030. The 2023 Federal Budget further solidified this commitment, offering income tax exemptions, investment tax allowances for EV charging equipment manufacturers and substantial investments by Tenaga Nasional Berhad (TNB) in charging facilities.

However, as of October 2024, the country accounted for just a little more than 3,300 charging stations, mostly concentrated in urban areas and highways, falling short of the 10,000 target by 2025. Concerns about charging infrastructure, resale value, maintenance and battery life also contribute to consumers’ hesitation. Fire safety concerns surrounding EV batteries, while rare, are also being addressed through updated guidelines. Furthermore, the relatively low cost of fossil fuels in Malaysia makes EVs a less financially attractive option for some consumers.

Two-Wheeled Electric Vehicles

2WEVs offer a distinct set of advantages, particularly relevant to Penang’s context. The city, like many urban centres, struggles with traffic congestion and limited parking. Compared to cities like KL, proximity within Penang and its narrow streets result in a high number of two-wheelers. If done well, 2WEVs could be used for last-mile connectivity, bridging the gap between public transport and final destinations. For example, a commuter taking the Rapid Penang bus to the Weld Quay terminal can easily use a 2WEV to reach their destination in the nearby heritage area, navigating smoothly through narrow streets where cars often struggle. Furthermore, 2WEVs are generally more affordable than four-wheeled EVs, making them much more accessible to a wider segment of the population.

Affordability is crucial in Malaysia, where the T20 income group is relatively small. A typical four-wheeled EV might cost more than RM100,000, while a 2WEVcould be purchased for a fraction of that.

From an environmental perspective, all EVs produce zero tailpipe emissions, contributing to cleaner air and a healthier environment. Other than that, the requirement for regular replacement of lubricants is no longer required, creating less waste lubricant that often pollutes our waterways.

2WEVs align with existing transportation trends in Malaysia—like many Southeast Asian nations, we have a high motorcycle ownership rate (83% in 2023, according to Statista). If you were to examine the data further, the number of cars (including MPVs, jeeps and trucks) registered in Malaysia is not very far off compared to motorcycles (see figure 1). It makes almost zero sense when the generic discussion around automobile electrification is predominantly centred around four-wheelers. Leveraging this existing preference can accelerate the adoption of 2WEVs, furthering the decarbonisation effort to reduce Malaysia’s economy-wide carbon intensity of 45% in 2030.[1]

The burgeoning e-commerce sector in Malaysia also presents a significant opportunity for 2WEV adoption. Referring to Digital 2024, Malaysia, 61.9% of Malaysians are purchasing products or services online weekly as of January 2024, and 27.2% are ordering their groceries online. The demand for efficient and agile delivery services is high. Think of food delivery riders navigating the streets of George Town with their insulated bags; 2WEVs are perfectly suited for this role, particularly given the substantial market size for food (USD240mil) and beverages (USD70mil) within the e-commerce landscape. The speed and manoeuvrability of 2WEVs make them ideal for navigating urban traffic and delivering goods quickly and efficiently, directly translating to increased demand for last-mile delivery. Other than food and e-commerce goods deliveries, there are also p-hailing trips for urgent document delivery.

The Road To Adoption

One of the key elements is commercial adoption, prioritising the use of e-motorcycles for delivery services, last-mile logistics and security or patrolling services. A report by the Asian Development Bank entitled “e-Mobility for Penang in 2019” also suggested that strategically, the promotion of commercial EVs will be more effective than pushing for consumer adoption as it creates initial demand and drive infrastructure development.

Companies worldwide are paying a lot of attention to their carbon emissions through their respective ESG (Environment, Social, Governance) policies. This can be implemented by e-commerce platforms like Shopee or Lazada and logistics companies like J&T Express or DHL to electrify their fleet. Unlike the investment in four-wheelers, a two-wheeler electrified fleet demands a smaller capital for investment. Perhaps, p-hailing services such as Lalamove, Foodpanda or Grab could offer incentives to EV riders to achieve their ESG strategy. This targeted approach not only creates a visible presence of 2WEVs on Penang’s streets, demonstrating their practicality and efficiency, it also helps to encourage the development of charging infrastructure- and maintenance-related industries. This will further drive the R&D investment in improving the 2WEVs altogether.

Investing in a robust charging infrastructure includes establishing charging stations at strategic locations, such as residential areas, commercial centres and transportation hubs. Under the leadership of Zairil Khir Johari, Penang State Exco for Infrastructure, Transport and Digital, beginning 2022, free public charging for 2WEVs has been made available at Astaka Persiaran Gurney, Medan Renong food complex (Padang Kota Lama) and Astaka Batu Lanchang. These locations serve as starting points for expanding the charging network. Six additional locations are at 1st Avenue complex, MBPP Lebuh Pantai complex, Desiran Tanjung complex (Tanjong Tokong), Sri Selera Bayan Baru complex, Bukit Jambul Complex and Bukit Gedung food complex. These additions will significantly improve public charging access around Penang. Other innovative charging solutions for 2WEVs including battery swapping stations, like the Blueshark swapping station in Bayan Lepas, could also be beneficial, particularly for commercial users who require quick turnaround.

Other than being used for deliveries and logistics, imagine if security forces and enforcers were being equipped with 2WEVs for their patrolling chores. Hats off to Perbadanan Bekalan Air Pulau Pinang (PBAPP) for using 2WEVs for their patrolling crew at the dams in Penang. A special mention also to the City Council of Penang Island (MBPP) for starting their electrification journey by equipping their enforcement team with 30 units of 2WEVs. Factories and universities can adopt the same for their enforcement and patrolling fleet. This can also expand further to strata properties (residential or commercial complexes alike)—e-pedal bicycles and 2WEV will work perfectly depending on the area of coverage.

Public awareness campaigns focusing on improved air quality, reduced congestion, the convenience of e-motorcycles and potential cost savings associated with switching to EVs can resonate with Penang’s residents and drive adoption. Imagine a campaign featuring local food delivery riders who have switched to e-motorcycles, sharing their positive experiences and emphasising the cost savings they’ve achieved. Relatable storytelling can be very effective in changing public perception, encouraging wider adoption.

Of course, policy and regulations play a vital role in incentivising 2WEV adoption. Supportive policies, such as offering subsidies, tax breaks and preferential parking for 2WEVs, will make them a more attractive option for consumers and businesses. More needs to be done to achieve the National Energy Transition Roadmap (NETR) where Malaysia aims to increase the share of 2WEVs on the road to 80% by 2050. In fact, Malaysia’s 2025 Federal Budget, for the second consecutive year now, is offering a purchase rebate of RM2,400 for 2WEVs that are completely knocked down (a product delivered in parts and assembled at the destination) in Malaysia, with RM10mil allocated to encourage the ownership of 2WEVs in the country.

While there is a push for 2WEVs adoption, there are other concerns and challenges that must be addressed. Unlike EV cars, 2WEVs do not have a standardised charging mechanism. Due to its lightweight nature, both battery swapping and plug-in charging are both viable options for 2WEVs charging technology. According to some motorcyclists we managed to interview, one of the biggest challenges in consumer adoption is probably the thrill in riding a conventional motorcycle coupled with the speed and engine sound that 2WEVs do not possess. Also due to the lightweight nature of motorcycle design, range anxiety could be worse for long-distance motorcyclists, making 2WEVs more suited for localised use.

Penang is uniquely positioned to embrace 2WEVs and to be a model for sustainable urban transportation. By focusing on commercial adoption, particularly within the thriving e-commerce delivery sector, investing in charging infrastructure, raising public awareness, implementing supportive policies and fostering collaboration among stakeholders, Penang can unlock the full potential of 2WEVs, creating a cleaner and more sustainable city for its residents. Although electric cars are a part of the solution, the inherent agility and cost-effectiveness of 2WEVs make them a particularly apt option for Penang’s diverse transportation requirements.

Footnote

[1] https://unfccc. int/sites/default/ files/NDC/2022- 06/Malaysia%20 NDC%20Updated%20 Submission%20to%20 UNFCCC%20July%20 2021%20final.pdf

References

[1] Global Automotive Consumer Study, Deloitte (2023)

[2] Malaysian Green Technology and Climate Change Corporation (2024): Malaysia’s EV teething problems may delay goals (Source:https://www. mgtc.gov.my/2024/11/malaysias-ev-teething-problems-may-delay-goals/#:~:text=Other%20 than%20the%20lack%20 of,devastating%20 should%20they%20 catch%20fire.)

[3] Malaysia’s EV “Roadmap”-(Low Carbon Mobility Blueprint (2021- 2030) Regional Trends: Motorcycles ownership rate in Asia, 2023 (Source: Statista, 2024)

[4] https://paultan. org/2022/06/08/ penang-introduces-emotorcycle-chargingstations-free-for-publicuse-nine-locationsacross-the-island/

[5] Digital 2024: Malaysia-https:// datareportal.com/reports/ digital-2024-malaysia