This article first appeared in The Edge Malaysia Weekly on June 16, 2025 - June 22, 2025

In its first year of implementation, the Malaysia Automotive Robotics and IoT Institute’s (MARii) electric motorcycle (e-bikes) incentive scheme (MARiiCas) reported 6,916 approved applications, amounting to RM16.59 million in rebates for commercial e-bikes as at December 2024.

Much of the conversation around electric vehicles (EVs) centres on cars, but that’s only half the story in Malaysia. In 2023, Minister of Transport Anthony Loke reported that of the country’s 36.3 million registered vehicles, about 16.8 million (46.3%) were motorcycles.

“The focus on non-commercial e-bikes, as opposed to those used for delivery services, was prompted by the growing demand for personal mobility solutions that align with global sustainability and energy efficiency trends,” says MARii CEO Azrul Reza Aziz.

For Malaysia to achieve its energy transition goal of  having EVs account for 20% of all vehicle sales by 2030 and 80% by 2050, as outlined in the Low Carbon Mobility Blueprint (LCMB) , two-wheeled EVs (2WEVs) represent a solution that cannot be overlooked.

MARiiCas offers a RM2,400 rebate on 2WEVs purchased from select providers to Malaysians aged 18 and above, with an annual income of RM120,000 or below. The aim is to make 2WEVs more accessible to lower-income Malaysians, which is the demographic most likely to opt for motorcycles.

“Motorcycles are the most common and affordable form of private transportation here, making them the primary mode of transport for the vast majority of Malaysian commuters, particularly those from lower-income groups,” says Eric Lim, Blueshark Ecosystem Sdn Bhd senior manager of brand and communications.

Blueshark is one of the 2WEV providers in the MARiiCas programme, alongside Ebixon, RydeEV, Modenas and Superlux.

“EV sales through the MARiiCas programme have already surpassed the combined sales of electric bikes over the last five years. It highlights a growing interest in electric mobility and aligns with the government’s vision of achieving net zero carbon emissions by 2050,” says a spokesman from Ebixon.

Azrul says among all of the MARiiCas applicants, the majority (40%) are individuals aged 31 to 40, over half of which fall within the RM20,000 to RM80,000 income bracket.

“We initially expected stronger participation from the younger demographic (18 to 30 years old) due to their higher adaptability to new technologies. This age group accounted for less than 20% of approved applications,” says Azrul.

This suggests that aside from financial constraints, accessibility to financing may be key in further adoption among younger customers.

Additionally, Selangor recorded the highest number of MARiiCas applications, with 2,257 approvals. Johor, which ranked second highest, had only about half the number of approvals.

This data shows that 2WEV adoption is primarily concentrated in urban and economically active regions, likely due to EV infrastructure availability and higher purchasing power.

Overall, MARii considers MARiiCas a success in making 2WEV adoption more accessible. However, further efforts are needed to attract the younger target demographic.

2WEV providers attribute this success to the rebate lowering the upfront costs of e-bikes — a key barrier to entry. Conventional internal combustion engine (ICE) motorcycles remain more affordable, with the cheapest 2WEVs still costing RM1,000 more than a comparable ICE motorbike, according to official price comparisons provided by MARii.

A more affordable ICE motorbike on the market, Modenas’ KRIS110, is priced at RM3,999. A comparable 2WEV is Superlux’s EB1, which costs RM4,888 before and RM2,488 after the rebate.

Additionally, much like EVs, 2WEVs are cheaper to maintain and operate, as Lim shows in a study Blueshark conducted to compare the cost of ICE bikes to their Blueshark R1 2WEV.

“The Blueshark R1 is up to 53% cheaper to run over 100km, depending on usage, compared to an ICE motorcycle in Malaysia. Our R1 is cheaper to run compared to a typical 150cc and below ICE motorcycle, up to RM2,400 per year cheaper to run, factoring in the price of petrol and electricity tariffs,” says Lim.

Azrul adds that the rebate is part of MARiiCas’ efforts to boost 2WEV adoption in Malaysia. Beyond cost, infrastructure and range anxiety remain major barriers to EV adoption.

A mature EV ecosystem is needed to normalise e-bikes as a viable substitute for traditional ICE bikes.

“While the rebate is highly anticipated and will spur demand for and interest in 2WEVs, this alone will not drive mass, sustained 2WEV adoption for the long term,” says Blueshark’s Lim. “[Convincing Malaysians to] shift to EVs requires collective action and an ecosystem of partners, including the government, charging infrastructure providers, automakers and consumers working cohesively to map out and bridge the transition to EVs, and this is happening, slowly but surely.”

Following the success of MARiiCas in driving the significant uptake in e-bikes, the rebate plan was renewed for 2025 in January.

Azrul says MARii is applying the lessons learnt from last year and has adjusting the programme to further grow the 2WEV ecosystem. This includes limiting the rebate to Completely Knocked-Down (CKD) models, which are e-bikes assembled locally.

This supports the growth of the local EV industry while reducing reliance on imported models.

“As at [March], five original equipment manufacturers had registered, with 11 models that have been approved under MARiiCas’ CKD Scheme. We are expecting more brands and models to register for this year’s MARiiCas programme,” says Azrul.

Additionally, charging infrastructure is being expanded on. Azrul notes that thanks to the lower investment requirement, scaling charging solutions is made easier and this will provide a practical pathway for further e-bike adoption.

Thanks to MARiiCas’ applicant data, stakeholders can identify which areas are in high demand for 2WEVs, allowing them to determine suitable locations for charging infrastructure, especially when it comes to lower-income consumers.

Additionally, Azrul says steps are being taken to ensure all 2WEVs under the MARiiCas programme can travel a minimum of 100km per full charge — as pledged by suppliers — to build confidence among consumers.

Lim notes that Blueshark’s solution to address range anxiety and other stigmas attached to 2WEVs lies in its battery-swapping technology.

“[Blueshark] truly believes that battery-swapping technology is key to accelerating EV motorcycle adoption in Malaysia, not just in terms of speed and convenience but also in overcoming the key stigmas of EVs,” says Lim.

To enhance awareness and financial accessibility, MARii has been engaging with dealerships to improve after-sales support, as well as institutions like Bank Negara Malaysia to establish more attractive financing options.

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