Imagine pouring hundreds of millions into an electric vehicle gamble – that's the bold move Perodua is making with its QV-E model, pinning the nation's hopes for a domestically crafted EV success on it. But here's where it gets controversial: Can this ambitious leap really turn a profit, or is it a risky mismatch for the market that made Perodua a household name?
After more than two years of intense development, Perodua's QV-E is finally here, symbolizing the dreams of Perusahaan Otomobil Kedua Sdn Bhd and Malaysians alike for a thriving homegrown electric vehicle. Yet, insights from automotive experts suggest it might not drive earnings growth, as its expenses could clash with the budget-conscious buyers Perodua typically attracts.
"I'm skeptical that the QV-E's pricing appeals to Perodua's loyal customer base, since at RM110,000, it's their priciest offering yet, potentially alienating its target audience," remarks Angeline Chin Swee Tyng, a senior research manager at TA Securities. She explains that Perodua's fans usually go for economical entry- to mid-level vehicles, and a monthly installment exceeding RM1,000 could feel out of reach for everyday consumers, particularly those in the lower-income B40 category. This insight came in response to inquiries from The Edge.
To break it down for newcomers: Perodua has set the base price of the QV-E at RM80,000, excluding the battery pack. They've innovated by separating the battery cost through a leasing program, charging RM275 monthly before sales tax. With an 8% sales tax added, that bumps the lease to RM297 per month. If financing the car via a nine-year bank loan, the battery's full cost adds up to RM32,076, pushing the overall price to RM112,076 – and that's before factoring in any interest or financing fees from the hire purchase agreement.
Perodua poured RM800 million into this project over the past couple of years. As Chin estimates, to recoup that investment, they'd likely need to shift about a million units – an enormous figure in the automotive world. For context, in 2024, the company moved 358,102 vehicles across its lineup, from the budget-friendly RM22,000 Axia to the RM72,900 Aruz. By the end of September this year, sales stood at 255,094 units from their Rawang headquarters.
"Given the RM80,000 starting point, profits on the vehicle alone are probably razor-thin, with most revenue expected from Battery-as-a-Service (BaaS) subscriptions," Chin adds. Think of BaaS like a monthly service plan for your phone – you pay ongoing fees for battery access, ensuring it's always in top shape without owning it outright.
This brings us to how Perodua's path is diverging once more from Proton's. At the launch event, Prime Minister Datuk Seri Anwar Ibrahim hailed it as a proud milestone for Malaysia, showcasing homegrown talent in EV design through local universities, educators, and scientists. He vowed that the government would ramp up efforts to promote EVs domestically and abroad.
Under the New Industrial Master Plan 2030, Perodua was chosen to spearhead Malaysia's EV landscape. The 28-month journey to the QV-E highlights a fresh split: Back in 2004, Proton unveiled its fully indigenous Gen-2 model, while Perodua countered in 2005 with the Myvi, affectionately nicknamed "King of the Road," dominating local sales ever since.
Proton, however, has struggled financially after losing ground, as its cars haven't held up well on the global stage – even in once-friendly markets like the UK, Australia, and South Africa. Perodua, on the other hand, started blending in-house design with the second-generation Myvi in 2011, followed by the Bezza sedan in 2016, their first major self-designed car. The Bezza borrowed the Axia's foundation (itself adapted from Daihatsu/Toyota platforms) but featured Malaysian-engineered upper bodywork with Daihatsu support.
Now, with a fully in-house EV (battery excepted), the jury's out on whether Perodua can go international – something Proton couldn't achieve despite similar ambitions. And this is the part most people miss: Is reinventing the wheel worth it when global giants are already zooming ahead?
"Perodua's debut EV, the QV-E, proves Malaysia has the engineering chops to turn concepts into reality quickly," enthuses Datuk Shahrol Halmi, head of the Malaysian Electric Vehicle Owners Club. "We're eager for more on its 'software-defined vehicle' features, like over-the-air updates that let you enhance the car remotely."
Yet, Cletus Stephenson, a top consultant in automotive retail, argues Perodua might be shooting itself in the foot by going solo on EV development. "For sales in the thousands – say, aiming for 100,000 eventually – the cost per unit is sky-high. Just for one model! Compare that to titans like BYD, Chery, and NIO, whose worldwide sales hit millions. Their economies of scale let them build multiple models affordably. Perodua could end up stuck with a single car and its subscription fees for ages," he warns.
Stephenson advocates a smarter strategy: Partnering with or buying tech from established Chinese EV firms, who are "eons ahead" of local efforts. "Think about it – BYD, Huawei, and Xiaomi are pioneering solid-state batteries, promising ultra-fast charges in minutes. Where's Perodua's edge as this tech explodes in the coming years?" It's a provocative point: Should Malaysia bet on indigenous innovation, or piggyback on global leaders to stay competitive?
On a brighter note, Shahrol suggests the QV-E's platform could support future models like hybrids or extended-range EVs, spreading R&D costs across more vehicles.
What really sets the QV-E apart locally is its battery leasing model, selling the car minus the battery to potentially boost resale worth. Perodua claims this eases EV ownership worries. "This approach tackles buyers' fears about electric cars," stated Perodua's CEO Datuk Seri Zainal Abidin Ahmad. "It includes a lifetime battery warranty for total reassurance."
For beginners, a battery's 'state of health' (SoH) measures its longevity and efficiency – it naturally declines with use. This often leads to steep depreciation in used EVs, sometimes dropping 30% right from new. Perodua's lease ensures the battery stays at least 70% healthy; below that, they'll swap it free (with terms, as detailed in their guidelines).
While novel in Malaysia, this mirrors strategies by NIO in China and Renault in Europe, aimed at lowering upfront costs and calming longevity concerns. But with battery tech advancing rapidly and prices falling, will Malaysians embrace it? Shahrol wonders aloud.
"It's noteworthy that giants like BYD, Tesla, and Geely/Proton opt for full ownership instead. Perhaps Perodua could add a buy-it-all outright option," he proposes.
Aaron Kee, Carsome's group chief business officer, notes that resale value depends on overall market demand. The promised battery reliability must balance against the buyer inheriting lease fees. "NIO's success in China, where many choose BaaS and battery swaps, shows this can preserve vehicle value," he says. "Still, transferring the lease adds complexity – a potential resale barrier. Ultimately, it comes down to whether buyers view the certainty of a healthy battery as worth the forever lease commitment."
Perodua's homegrown EV push deserves applause, fostering national growth amid a flood of imported and assembled Chinese cars. But Proton's cautionary tale reminds us: Building from scratch for patriotic pride might not sustain a local automaker. As the industry evolves, is this the right path, or a detour to irrelevance?
Do you believe Perodua's QV-E strategy will electrify the market and break even, or is it destined to fizzle? Is battery leasing a game-changer for EV adoption, or just a temporary fix? Share your takes – agreement or dissent – in the comments below!
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