Battery Capacity or Charging Infrastructure? Cost Modeling Study to Evaluate Investments of Electric Motorcycles and Supporting Infrastructure in Malaysia
Conventional motorcycles with internal combustion engines have significantly contributed to air pollution in Southeast Asia, posing challenges to achieving the ambitious net-zero emissions targets ratified by ASEAN member countries. In response, ASEAN countries have begun to adopt electric vehicles...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2025-02-01
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| Series: | World Electric Vehicle Journal |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2032-6653/16/2/93 |
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| Summary: | Conventional motorcycles with internal combustion engines have significantly contributed to air pollution in Southeast Asia, posing challenges to achieving the ambitious net-zero emissions targets ratified by ASEAN member countries. In response, ASEAN countries have begun to adopt electric vehicles to achieve this ambitious target, especially electric motorcycles (EMs). However, the implementation of EMs faced several obstacles, notably limited battery range and insufficient charging infrastructure. Addressing these issues requires a huge investment from EM users and infrastructure providers. The government also plays a significant role in improving the investment climate for the EM ecosystem by providing financial incentives. This research aimed to model cost variables to evaluate the cost-effectiveness of government subsidies for EMs and their charging infrastructure in Malaysia using an equivalent annual cost (EAC) model and determine whether increasing battery capacity or increasing charging infrastructure would be more favorable. Data were collected through interviews with EM dealers, government agency, electric vehicle experts, and surveys of EM users in Malaysia, supplemented with secondary data through research articles, government regulations, and current news related to EM policies implemented in Malaysia. Surveys and interviews with relevant stakeholders were conducted to identify cost variables that influenced EM ownership and operation of EM infrastructure. This study found that Scenario 1 (subsidize EM purchases and charging infrastructure while excluding the battery purchase subsidy) was an optimal subsidy strategy for the government. Scenario 1 also reduced the EAC value, which is a cost burden for EM users, by 10.06% (for battery swap system users) and 5.84% (for direct charging system users). Additionally, this study also found that encouraging the use of EMs with battery swap systems was more profitable than EMs with direct charging systems. The findings of this research provide some insights about the most cost-efficient subsidy scenario for overcoming the obstacles, fostering a win–win situation for both EM users and the government. Thus, accelerating EM adoption forms part of the government’s goal to achieve net-zero emissions. |
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| ISSN: | 2032-6653 |