Earlier this year, Perodua stepped into the headlines with its first zero-emission vehicle made entirely in Malaysia, the Perodua QV-E. This is a sporty all-electric vehicle, with 201 hp, a 445 km travel range, and a price of RM80,000, battery not included. In order for customers to be able to drive the QV-E, all customers will have to join Perodua’s Shariah-compliant and first of its kind Battery-as-a-Service (BaaS) program to democratize EV ownership. This lease program becomes the subject of this news semantic and its benefits, drawbacks, and potential use in the hands of the Malaysian driver.
Why the QV-E Is Priced at RM80k Without Its Battery
The base version of the Perodua QV-E without a battery is priced at RM80,000 or USD 19,400. This battery is an LFP 52.5 kWh battery and they charge separately. Why is that?
- Batteries are expensive. They account for 40-50% of the total cost. This separation means that the vehicle is more affordable upfront.
- You don’t have to worry about battery degradation. Leasing the battery means Perodua would replace it for free if the battery’s health falls below 70%.
- The environmental impact is better. Perodua would own the battery and would recycle it afterward.
- The battery is not old and degraded which preserves the value of the vehicle when it is time to sell.
Perodua also has the ability to monitor, dowload, and install updates for the battery. This improves the performance of your vehicle. The operational capability of the car combined with the low cost of the QV-E means it is pretty much like purchasing a normal petrol vehicle, only it is electric.
Who else does Battery Leasing
Battery leasing, or as some call it, Battery-as-a-Service (BaaS), is a popular option available to some major automakers to facilitate EV ownership. Here are a few examples:
- Renault: Owners of the Zoe EV are able to cut the price of the vehicle by up to 30% (negating initial costs of battery ownership) by renting the battery on a monthly basis. This also includes a full battery warranty, with fees hinging on driving mileage.
- NIO: Based in China, NIO is a battery leasing and swapping model. Customers also have the option of upgrading to a larger battery. This leasing model decreases EV ownership costs by 20-40%.
- Proton: Based in Malaysia, they also utilize a battery leasing model with their e.MAS vehicles, including the e.MAS 7 SUV, leveraging Geely technology.
- Others: Major battery manufacturers like CATL, or companies like Sun Mobility (who purpose builds EVs for scooters and trucks), also have leasing offerings. A very popular manufacturer, Tesla, offers battery subscriptions, albeit for only select vehicle features.
Many of these examples show the industry advancements in terms of upgrades and battery recycling, that are not yet fully accessible to Perodua.
Is RM80k a More Accessible Price Point?
Having allowance RM80,000 definitely makes buying an EV a whole lot easier when in Malaysia, especially when the majority of these cars are priced over RM100,000, which is bad news for a majority of the families that are targeting the Perodua cars.
The rivals of the EVs which are on the cheaper end like the BYD Dolphin
- Compare the Perodua Myvi which is priced at RM50,000-RM70,000 but comes with all the extra benefits that an EV can provide.
- Add the leasing of RM275 a month plus taxes of 8% which comes to around RM297. Over the 9 years, it comes to around RM112,000 in total.
- In the long run, both the savings electricity and petrol is 50% cheaper and the EV will have to do with less maintenance overall.
- Most of the help from the government comes with some expected features like tax breaks and subsidies for EVs.
Experts have the belief that the leaps the government is taking with the EVs will make it possible for Malaysia to touch 15% of all sales of EVs by the year 2030. It is a good option for people who do city driving or are younger in age. Although the 9 years on a lease can seem like a long time and is therefore not for everyone.
What if you decide to sell the car before the 9 year mark?
If you own the QV-E, you can sell it before the 9-year leasing period is up, you just need to do the following:
- Make sure you completely pay off your car loan, if you have one, first.
- Selling your car through Perodua’s Pre-Owned Vehicles (POV) is the safest option.
Your battery belongs to Perodua, but the new owner has options if they wish to:
- Buy out your lease and pay the remaining amount.
- There’s the option to start a 9-year lease with a new battery.
If you decide to terminate your lease early for any reason (This includes skipping payments, being in a car accident, etc.)
- After 2 months without payment: Perodua can disable the battery from their end.
- After 3 months: Your lease is terminated, they repossess the battery, and you may incur fees from either towing, storage, or both as well as a late payment fee of 1% on any outstanding balance.
This method prioritizes selling to the new owner, so you may be more limited in options than if you were selling a typical car to another. If you have any questions, your best bet is just talking to a Perodua dealer.
5/7/9 year loan breakdown
The duration of the lease for the battery will always be 9 years (108 months). There are no shortenings. However for car price RM80,000 you may select bank loans for 5, 7 or 9 years.
- Monthly payments are a combination of the battery fee and car loan for the duration of the loan.
- After the loan finishes you only pay the battery fee through the app Perodua.
- Initial payment is 3 months battery fee which is RM891 inclusive of tax before you get the car.
Below is a basic table in which a 10% down payment is made and there is a 3.5% interest. The real value is affected by your credit score and everything is done excluding taxes or insurance.
Real value isn’t inclusive of insurance and taxes. The real value of the amounts will depend on your credit.
| Loan Term | Car Payment (RM/month) | Battery Fee (RM/month) | Total Payment (RM/month) | Total Cost (Car + Battery over 9 years, RM) |
|---|---|---|---|---|
| 5 Years | 1,502 | 275 | 1,777 | 106,620 (car) + 32,076 (battery) |
| 7 Years | 1,113 | 275 | 1,388 | 93,492 (car) + 32,076 (battery) |
| 9 Years | 901 | 275 | 1,176 | 97,308 (car) + 32,076 (battery) |
Notes:
- The price for a battery is RM275 before tax plus an 8% tax, making the entire battery RM297 after tax.
- With battery longevity, after 9 years, over 70% health means you get to keep the battery for free, however, if the health level battery does not, you would need to sign a new lease for its replacement.
- With the new EV, you can save over 500 RM in fuel per month if you switch from petrol.
Fuel savings in real time for your situation available on Perodua’s website.
The new QV-E is the most cost effective, leasing an EV in the market, especially as they add more charging stations, with the support on new EV’s from the Gov, EV’s are the future not more ICE cars. Contact a Perodua dealer for more info and go green without the high cost!
Public Reaction: When Pricing Overshadows the Car Itself
In Malaysia, people are eager to get their hands on the Perodua QV-E, as this is the first EV to enter the Malaysian marketplace, and with a price tag of only RM80,000, the price is very reasonable. There are, however, some concerns with the cost of the battery leasing plan.
What the people have to say
- The Good:Perodua is making a great effort. It has spent almost 200,000,000 USD. The leasing plan offers a lifetime warranty and a free battery replacement. Some people love the fact that the plan helps with recycling.
- The Bad:Some people feel like $275 is a huge monthly price just to be renting an engine, and that it will cost more than the competition like BYD and MG. People are very worried that these cars will get locked if payments come in late, and feel very strongly that Malaysia will fall behind on this EV and battery leasing plan because our country does not have battery swap stations.
- The Middle:There has been Reddit chatter full of disappointment, but they balanced it with understanding that there is a lower price on batteries if the owner sells the car at an earlier date. There has been a ton of social media speculation on the long-term price of the car and the design, but overall people agree that this will not have a big impact on the overall market.
The launch has sparked lots of talk online. Time will tell if more Malaysians go electric with the QV-E.
The QV-E’s leasing makes electric cars simple and cheap. With more chargers and government support, EVs are the future. Check Perodua’s website or a dealer for more info. Drive green without breaking the bank!
