Policy Incentives, Competitive Landscape, and  Potential Evaluation::

Liyan Cao; Mohd Farid Shamsudin

Liyan Cao School of Management Engineering, Guangdong Polytechnic of Science and Technology https://orcid.org/0009-0003-7145-4456
Mohd Farid Shamsudin Universiti Kuala Lumpur https://orcid.org/0000-0002-6005-6423

Keywords: Chinese New Energy Vehicles (NEVs), Malaysian Automotive Market, Policy Incentives, Competitive Landscape

Abstract

The global automotive industry is undergoing a profound transformation towards electrification, with Chinese New Energy Vehicle (NEV) manufacturers emerging as pivotal players on the international stage. Malaysia, as a strategic automotive hub in Southeast Asia, presents a burgeoning and highly competitive market for NEVs. This study conducts a comprehensive multidimensional analysis of the penetration and development strategies of Chinese NEVs within the Malaysian market. The research is structured around three core dimensions: policy incentives, the competitive landscape, and market potential evaluation. Firstly, the paper dissects the intricate web of national and state-level policy incentives in Malaysia, including tax exemptions, import duty structures, and initiatives like the National Automotive Policy (NAP) 2020 and the Low Carbon Mobility Blueprint (LCMB) 2021-2030. It evaluates how these policies create both opportunities and barriers for Chinese brands. Secondly, it maps the competitive landscape, contrasting the aggressive strategies of Chinese OEMs (e.g., BYD, Great Wall Motor, Chery) with established Japanese incumbents (e.g., Toyota, Honda), nascent local EV players (e.g., Proton, smart 1 under Proton-NB), and other international brands. The analysis employs frameworks like Porter's Five Forces to understand the dynamics of this evolving sector. Thirdly, the study employs a PESTEL analysis and quantitative market forecasting models to evaluate the future growth potential, identifying key drivers such as rising environmental consciousness, economic development, and government targets, alongside significant challenges including consumer range anxiety, underdeveloped charging infrastructure, and economic volatility. The conclusion synthesizes these findings to propose strategic recommendations for Chinese NEV manufacturers to navigate the complexities of the Malaysian market, for Malaysian policymakers to optimize their regulatory framework, and for future academic research. This study contributes to the literature on international business expansion of emerging market multinationals and the geopolitics of technology in the global EV supply chain.

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Author Biographies

Liyan Cao, School of Management Engineering, Guangdong Polytechnic of Science and Technology

Liyan Cao is an Associate Professor at Guangdong Polytechnic of Science and Technology, where she brings extensive expertise in the fields of innovation management, science and technology management, public management, and the creative economy. She earned her Doctor of Philosophy in Management from the Universiti of Kuala Lumpur, further solidifying her academic foundation and research capabilities. In addition to her academic role, Dr. Cao serves as a Senior Science & Technology Consultant, contributing her knowledge and experience to various projects and initiatives. Her major research areas focus on the dynamic interplay between innovation and management, exploring how technological advancements can be effectively managed and utilized within public and creative sectors. Through her work, Dr. Cao aims to foster sustainable development and drive forward-thinking strategies in both academia and industry

Mohd Farid Shamsudin, Universiti Kuala Lumpur

Professor Dr Mohd Farid Shamsudin is an accomplished academic with extensive experience in management and marketing. He has a solid background in both the banking and telecommunication industries. Dr Mohd Farid spent almost eight years working in various financial institutions, where he focused on credit controls. He then moved on to Celcom Axiata Malaysia, one of Malaysia's leading mobile telecommunications companies, where he spent 16 years primarily involved in customer services, marketing, and sales. Dr Mohd Farid's academic journey started with a Bachelor's degree in Management from Multi Media University. He then earned a Master's in Business Administration from the International Islamic University Malaysia, specializing in strategic management. He completed his doctoral degree in Business Administration from Universiti Utara Malaysia (UUM) in 2012. In 2014, Dr Mohd Farid joined Universiti Kuala Lumpur as a Senior Lecturer. Currently, he is the head of the research and innovation unit for the business school. He is also recognized for his excellence in supervising postgraduate students, having successfully graduated with 40 students in PhD and Master's by research. Dr Mohd Farid is an active reviewer for journals, book writers and editors, as well as module writers. Besides, he is also a Certified Marketer Asia and an exco member of the Institut Marketing Malaysia. He teaches a wide range of management and marketing-based subjects. Dr Mohd Farid is a certified Trainer and NLP (Neuro-Linguistic Programming) practitioner, further enhancing his expertise in teaching and guiding individuals to achieve their full potential. His passion for education and training has enabled him to provide valuable insights and coaching to students and professionals alike, making him a highly sought-after mentor in his field. He is committed to fostering innovation and academic excellence in his students. His colleagues and peers in the academic community highly regard him

Policy Incentives, Competitive Landscape, and Potential Evaluation:

A Multidimensional Study on Chinese New Energy Vehicles in the Malaysian Market

Abstract

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