Malaysia’s Motorcycle Sector: Past and Present Possibilities in an Era of Energy Transition

While policies and scholarship have focused on national car projects, the two-wheeler sector has stood in their shadow. Modenas witnessed early growth and remains a popular brand after Yamaha and Honda; it has however failed to hit export targets, owing to limited technology transfer and the inability to scale. 

In recent years, there has been renewed interest in the two-wheeler sector, focusing on phasing out combustion motorcycles in favour of electric two-wheelers (E2Ws). Still nascent, Malaysia’s electric two-wheeler (E2W) sector appears to prioritize an extensive model of assembly and distribution rather than the protection of home-grown brands. 

Still in its infancy, E2W adoption rates remain low at under 1 per cent, albeit there has been high year-over-year growth since 2022. Interviews with E2W manufacturers, regulators, dealers, and consumers reveal challenges beyond common issues like price, range, charging time, maximum speed, absence of servicing infrastructure and a second-hand market. Notably, Malaysia lacks a suitable product for Malaysian roads and lifestyle due to insufficient institutional support for Research & Development (R&D) and talent matching. 

With aspirations to be an E2Ws regional manufacturing hub, the government and businesses should step up on public education to bridge the information gap, rethink the R&D support model for the electric vehicle industry, and develop clarity surrounding what a “Made in Malaysia” motorcycle entails.