Not all cars will switch to pure electric in the short term, but new energy vehicles are gradually becoming the mainstream of the market. Currently, pure electric and hybrid models together account for 7% of new car sales, with the government targeting 20% by 2030, indicating that traditional fuel vehicles will persist for the long term. The market now exhibits a dual-track dynamic: pure electric vehicle sales have surged 102.6% year-on-year, with brands like BYD reducing price barriers through localized production; meanwhile, hybrid models maintain steady 20.5% growth due to their range anxiety-free advantage, making them better suited for regions with underdeveloped charging infrastructure. Notably, as import tax incentives expire by end-2025, prices of fully imported pure electric models may increase 30%-100%, potentially slowing some consumers' transition. Regarding infrastructure, while charging points have reached 5,149 units, the year-end target of 10,000 remains unmet, with approval processes and installation costs continuing to hinder widespread adoption. From an industrial chain perspective, localized assembly plans are accelerating implementation - including the operational launch of BYD's Tanjung Malim plant - which will enhance price competitiveness. Overall, the next decade will see a multi-fuel automotive market where conventional, hybrid and pure electric vehicles coexist, with full electrification awaiting improved infrastructure, mature localized production, and more accessible pricing structures.
