Are Car Sales in Malaysia Truly Transparent?
In Malaysia, when we buy a car, we often pay for the brand, the style, and the features. But how many of us truly understand what we’re paying for? Is the pricing of vehicles in our market transparent—or are we simply guessing at their true value?
This question came to light during a recent car launch we attended. One particular case stood out: an all-electric vehicle (EV), which benefits from tax exemptions, was priced higher than its plug-in hybrid (PHEV) variant. Even more perplexing, the mild hybrid version of the same model was the cheapest among the three. These pricing disparities raise a crucial question: Are we really aware of what we’re paying for?
Despite having fewer mechanical components—no internal combustion engine, no traditional transmission, and significantly fewer moving parts—EVs are often priced higher. While we may not be experts in automotive manufacturing, logic suggests that an EV should cost less to produce than a PHEV, which combines both electric and combustion technologies. Yet, consumers are asked to pay more for less hardware. Where is the transparency?
If we’re willing to itemize repair costs when we fix our vehicles—where we know that engines and transmissions are typically the most expensive components—why can’t manufacturers provide a breakdown of what goes into the cost of an EV? What are we actually paying for: software, batteries, brand image, or profit margins?
There’s also the question of value and longevity. In 2025, traditional internal combustion engine (ICE) vehicles, when maintained properly, are known to last for decades. In fact, Malaysia has a thriving market for used cars that are over 10 years old. On the other hand, EVs depreciate faster in the used car market. Battery warranties usually last only eight years, and once expired, the cost of replacement batteries can be prohibitive—often making it more economical to scrap the car than to repair it.
Is this sustainable? Are we moving toward a model where vehicles become disposable like smartphones? And if EVs are hailed as environmentally friendly from “well-to-wheel,” shouldn’t their pricing reflect a push for accessibility and long-term value, rather than exclusivity?
While we understand the concept of “willing buyer, willing seller,” the masses deserve clarity. Not everyone has the luxury of buying a car based on brand loyalty or aesthetics alone. For many, it’s a significant financial decision that carries long-term consequences.
Transparency in car pricing isn’t just about fairness—it’s about empowerment. If manufacturers itemized the cost of each major component and feature, consumers would be better informed and better equipped to make smart, sustainable choices.
So we ask again: Are we paying a premium for innovation, or simply for the unknown?
What’s your take—should EV pricing be more transparent, especially when compared to their ICE counterparts?
