All revved up for Sime Darby Motors’ EV ventures
KUCHING: Analysts are encouraged by Sime Darby Motors Malaysia inking a distribution agreement with BYD, the world’s leading manufacturer of new energy vehicles (EVs), for the entry of its EVs to the Malaysian passenger car market.
SDM said the agreement will entail SDM distributing BYD’s ATTO 3 and new e6 vehicles.
SDM managing director Andrew Basham said the partnership will bring BYD’s expertise to the Malaysian market through a wide range of EV models.
“Our collaboration with BYD is one of the steps SDM is taking towards our aim of becoming a leader in EV. This is also aligned with the Malaysian government’s push towards low carbon mobility,” he said in a statement.
Liu Xueliang, the general manager of BYD Asia Pacific Auto Sales Division, said Malaysia is a key market for its expansion as there are vast opportunities for the EV ecosystem to grow and evolve.
“Given its proven track record and well-established presence in the automotive sector in the Asia Pacific region, we look forward to partnering with SDM to serve Malaysia’s growing EV demand,” he added.
AmInvestment Bank Bhd (AmInvestment Bank) said the news came as no surprise as Sime Darby has been collaborating with BYD in Singapore since 2019.
“While the near-term sales of EVs are likely to remain insignificant due to prohibitive pricing and lack of charging infrastructure, we believe this is a step in the right direction for Sime Darby.
“This will help to diversify the group’s brand portfolio while adding a well-established EV brand to its stable.”
RHB Investment Bank Bhd (RHB IB) was also positive on this development as it strengthens Sime Darby’s position as the leader in EV offerings in Malaysia.
“As Sime Darby is already BYD’s dealer in Singapore (via Vantage Automotive), and with BYD recently announcing that it would set up a facility in Thailand to start producing 150,000 passenger cars pa from 2024 for domestic consumption, and export to South-East Asian and European countries, it was only a matter of time before Sime Darby brought BYD into Malaysia, in our view,” it said.
To note, the Atto 3 is an electric C-segment SUV and currently retails in Australia and Thailand for circa RM137,000 to RM147,000. Meanwhile, the new e6 is an electric compact MPV and is currently on sale in Singapore for
S$116,000.
“We do not have any indication on the potential prices in Malaysia,” RHB IB said. “If the Atto 3 sells in Malaysia for around RM137,000 to RM147,000, then it may soon be the country’s cheapest EV, dethroning the Hyundai Kona e-lite, which currently has a starting price of RM157,000.
“The Atto 3’s pricing may go head-to-head against Great Wall Motors’ Ora Good Cat EV, which is rumoured to retail between RM130,000 to RM180,000.”
With BYD added to its list of renowned brands in Malaysia, the research firm believe Sime Darby strengthens its position as the auto company with the most comprehensive EV offering in the country.
“From our recent ground checks, the orders for its EVs remain robust despite long waiting periods.
“We maintain our forecasts for now, until we get greater clarity on the BYD volumes that Sime Darby will bring into Malaysia.
“However, as the BYD vehicles will likely be CBU for the foreseeable future (given BYD’s upcoming production in Thailand), we believe that volumes in Malaysia will unlikely be meaningful, and therefore the earnings impact will not be material.”