Perodua's Entry Level EV

Did Perodua Crack the Entry EV code?

      Perodua just released its all new dedicated EV made in and for the Malaysian marketplace.  But did they just crack the code on how to successfully enter the entry level EV marketplace?  Seems maybe they did and here is how they are going to not only change there

own success story, but the success story of the entry level EV marketplace.

        Founded in 1993, Perodua is relatively a new automaker.  But with a hard fought battle from under the shadow of Malaysia's other automaker, Proton Auto, they are about to set there mark on the automotive world.  Most companies accomplish their world dominance when they launch, but just like the music industry, sometimes there a few who take a few market cycles (records) before they really take off.  Perodua may just be that success story, but can they become the Metallica of the EV world with their new car?

        Now you must be thinking to yourself, how could AutoLooks put this small car company into the same category as one of the biggest metal bands of all time.  Well, for starters, Metallica didn't make it big off there first album and really they didn't see commercial success until the Metallica album (Black album for the ones who don't which album we are talking about).  But how can we even think that a car company who has been around for over 30 years, grow to dominate the EV world.  For that answer you have to take a look at this models purchase platform.

       Unlike other manufactures, Perodua is setting up this model with a 275 ringgit ($67 US) per month payment for there battery pack.  This is part of a nine (9) year lease contract for your battery pack under the Battery-as-a-Service (BaaS) model.  Made to ensure a lifetime guarantee on the battery, which along with its 80,000 ringgit ($19,400 U.S.) price-tag, will make this compact more appealing to the entry level consumer.

      As we outlined in our "Small EVs" and "Entry Level Issues" #podcasts, the entry level market is where life starts for any brand.  Without any entry level products, consumers are more likely to bypass your products later on as they move up the financial chain.  Without that bond which is built at the bottom, most companies today are moving away from this model, and only going after the larger profits.  But without entry level consumers becoming attached to your brand at an early stage, they may not want any of your products in the future as they become loyal to the band who was there for them in the beginning.

       Perodua knows this market all too well, as there corporate model is based off of entry level products.  With only Sub-Compact and Compact models in their current lineup, Perodua, cannot take a chance on alienating their core consumers with a higher priced product, just to meet government demands.  They want to ensure that they keep there loyal consumers even with a change to an alternative power source.       

         Including a lease program for the battery pack, reduces the anxiety usually attached to hefty price tag of replacing the battery after 6 - 10 years.  With a lease program, Perodua can not only remove this anxiety, but also create a separate revenue stream for the company, which can last past the first owner.  This not only gives peace of mind to its new owners, but also piece of mind to the used car market owners, as they won't have to worry about the replacement cost.  Maybe Perodua is on to something here?

​    With a little help from Canada's own Magna Steyr and China's CATL, the jointly developed lithium iron phosphate battery pack and modular platform will help to reduce the overall cost of this model.   With 201hp and 210 lb-ft of torque, this little compact fits the market just where it needs to be to compete with its hybrid and combustion counterparts.  And with a range of up to 445km (276miles), range anxiety is out the question, as most entry level consumers don't travel more than this a day.

       The only real issue you have at the end of the day, is if you can afford to install a home charger, or if your building supports EV charging.  This is where anxiety sets in for the consumer, but with most places already hooked up and many more on the way, this will become less of an issue further down the road.  For now it may be in Perodua's best interest, to create a lease program for home charging stations.  Of course there is always Tesla for that.

        In the end it seems that Perodua will be the company who on the right path towards EV adoption at the ground level.  Now we just have to wait and see if there model can be replicated elsewhere in the world.  Maybe this could lead to more demand abroad for the little brand, as more consumers demand Perodua's products worldwide.  Let's hope.

Everett J.
​#autolooks