Skip to main content
Lorry Financing

Electric Lorry Truck Malaysia: Future Financing for Green Logistics 2030

Malaysia targets 40% electric vehicle adoption by 2030. Learn how to finance electric lorries for sustainable logistics while managing higher upfront costs and charging infrastructure requirements.

Ing Heng Credit Team β€’ β€’ 9 min read

The Green Logistics Mandate: 2030 is Closer Than You Think

Malaysia has committed to reducing carbon emissions by 45% by 2030 (compared to 2005 levels). Transport sector emissions must decrease 30-40% to achieve this target.

The government's strategy: Accelerate electric vehicle (EV) adoption in commercial transport.

Policy Target: 40% of new lorry registrations must be electric by 2030. This isn't a recommendationβ€”it's becoming a requirement for government tenders and large corporations.

For logistics companies, this creates both challenge and opportunity. Electric lorries cost more upfront but offer long-term advantages. The question is: how do you finance the transition without straining your business?

Why Electric Lorries Cost More: The Premium Breakdown

Equipment Cost Comparison

Diesel 5-Ton Lorry: RM180,000 - RM220,000
Electric 5-Ton Lorry: RM320,000 - RM400,000
Cost Premium: 70-100% higher

What Drives the Higher Cost?

  • Battery Technology: RM80,000-RM150,000 per battery pack (most expensive component)
  • Electric Motor: RM30,000-RM50,000 (vs RM20,000 diesel engine)
  • Power Electronics: RM20,000-RM35,000 (inverter, converter, charging systems)
  • Thermal Management: RM8,000-RM12,000 (battery cooling systems)
  • Low Production Volume: economies of scale not yet achieved

Charging Infrastructure Costs

Electric lorries require:
β€’ Charging station installation: RM30,000-RM80,000
β€’ Electrical upgrades: RM20,000-RM50,000 (3-phase power, increased capacity)
β€’ Backup power source: RM15,000-RM30,000 (generator or battery storage)

Total Infrastructure Cost: RM65,000-RM160,000 beyond lorry purchase

The Electric Lorry Advantage: Beyond Emissions

Operating Cost Savings

Energy Cost Comparison:
β€’ Diesel lorry: RM3,000/month fuel (based on RM2.50/liter, 1,200 liters/month)
β€’ Electric lorry: RM1,000/month electricity (based on RM0.50/km, 2,000 km/month)
Monthly Savings: RM2,000 per lorry

Maintenance Cost Reduction

Diesel Lorry Maintenance (Annual):
β€’ Oil changes: RM1,200
β€’ Filter replacements: RM800
β€’ Engine repairs: RM8,000-RM15,000 (unpredictable)
Total: RM10,000-RM17,000

Electric Lorry Maintenance (Annual):
β€’ No oil changes
β€’ Minimal filter replacements
β€’ Battery servicing: RM3,000-RM5,000 (predictable)
Total: RM3,000-RM5,000

Annual Savings: RM7,000-RM12,000 per lorry

Performance Advantages

Electric Lorry Benefits:
β€’ Instant torque (better acceleration from stop)
β€’ Quiet operation (night deliveries in urban areas)
β€’ Zero emissions at point of use (indoor warehouses, ports)
β€’ Regenerative braking (extends range, reduces brake wear)

ROI Analysis: Electric vs Diesel Lorry Over 5 Years

Scenario: 100,000 km/Year Operation

Diesel Lorry:
β€’ Purchase cost: RM200,000
β€’ Fuel cost: RM36,000/year (RM3,000 Γ— 12)
β€’ Maintenance: RM12,000/year average
β€’ Resale value after 5 years: RM80,000-RM100,000

Electric Lorry:
β€’ Purchase cost: RM360,000
β€’ Electricity cost: RM12,000/year (RM1,000 Γ— 12)
β€’ Maintenance: RM4,000/year
β€’ Resale value after 5 years: RM150,000-RM180,000

5-Year Total Cost of Ownership:
β€’ Diesel: RM200,000 + RM180,000 (fuel) + RM60,000 (maintenance) - RM90,000 (resale) = RM350,000
β€’ Electric: RM360,000 + RM60,000 (electricity) + RM20,000 (maintenance) - RM165,000 (resale) = RM275,000
Electric Savings: RM75,000 over 5 years

Result: Despite higher purchase price, electric lorry costs RM75,000 less to operate over 5 years.

Financing Electric Lorries: Strategic Considerations

1. Higher Purchase Price = Higher Financing Need

Electric lorries at RM320,000-RM400,000 require larger financing:
β€’ 0% down payment preserves RM64,000-RM80,000 per lorry (vs RM40,000-RM48,000 for diesel)
β€’ Preserved capital critical for:
- Charging infrastructure installation
- Backup power systems
- Driver training on electric vehicle operation

2. Include Charging Infrastructure in Financing

We finance:
β€’ Electric lorry
β€’ Charging station installation
β€’ Electrical upgrades
β€’ Backup power source

Bundled Financing Example:
β€’ Electric lorry: RM360,000
β€’ Charging station + electrical work: RM60,000
Total Financed: RM420,000

3. Consider Total Cost, Not Just Monthly Payment

Electric lorry monthly installment may be higher (due to higher purchase price), but:
β€’ Fuel savings offset part of higher installment
β€’ Maintenance savings provide additional offset
β€’ Overall ROI is often better despite higher nominal cost

4. Government Incentives and Grants

Available programs:
β€’ Green Technology Financing Scheme (GTFS) – low-interest loans for EVs
β€’ Electric Vehicle Adoption Grant (up to RM5,000 per lorry)
β€’ Income tax exemption (EV benefits from income tax)

Ing Heng Credit Integration:
We coordinate with government incentive programs to reduce your effective borrowing cost.

Ing Heng Credit: Electric Vehicle Financing Specialists

1. We Understand EV Technology

We know:
β€’ Battery lifespan (8-10 years with proper maintenance)
β€’ Charging infrastructure requirements
β€’ Resale value trends (improving as EV adoption grows)
β€’ Total cost of ownership advantages

2. Finance Complete EV Solutions

Unlike banks that finance the lorry only, we finance:
β€’ Electric lorry
β€’ Charging infrastructure
β€’ Electrical system upgrades
β€’ Backup power systems

3. Fast Approval = Green Opportunities

When government tenders require electric vehicle capability:
β€’ We approve in 24-48 hours
β€’ Deploy electric lorries before tender deadlines
β€’ Capture green contracts that diesel operators can't access

4. Support for Phased Electrification

Strategy:
β€’ Phase 1: Replace 20-30% of fleet with electric (trials)
β€’ Phase 2: Expand to 50% based on results
β€’ Phase 3: Full conversion as diesel lorries retire

We finance each phase progressively.

Real-World Electric Lorry Success Stories

Port Klang Green Logistics

"Won government contract requiring 40% electric fleet by 2026. Initially resistedβ€”electric lorries cost RM360,000 vs RM200,000 diesel. Ing Heng showed ROI analysis: operating savings RM24,000/year per lorry (fuel + maintenance). Higher purchase price recovered in 4-5 years. Financed 5 electric lorries with 0% down payment, plus charging infrastructure. Now 40% of fleet (8 electric lorries out of 20). Operating costs down 15%. Won additional government contract requiring 100% electric fleet. Electric transition was best business decision."

β€” Zainal Abidin, Green Logistics Director

Urban Delivery Specialist – Klang Valley

"Do last-mile delivery for KL malls and offices. Diesel lorries prohibited from certain zones during daytime due to emission concerns. Needed 3 electric lorries for urban access. Financed with Ing Heng at 0% down. Higher monthly installment than diesel (RM8,000 vs RM5,000), but fuel savings of RM2,000/month + urban access benefits more than offset premium. Now have 8 electric lorries, access to all urban zones. Quiet operation allows night deliveries, expanding capacity by 30%. Electric lorries opened markets diesel couldn't serve."

β€” R. Kumararaj, Last-Mile Specialist

Planning Your Electric Fleet Transition

Step 1: Assess Current Routes

Evaluate:
β€’ Daily distance per lorry (under 300km/day = ideal for electric)
β€’ Access to charging infrastructure (depot vs public stations)
β€’ Urban routes (emissions restrictions favoring electric)

Step 2: Calculate Charging Strategy

Options:
β€’ Depot charging: Install chargers at your base (requires electrical upgrades)
β€’ Public charging: Rely on growing network (lower infrastructure cost, less control)
β€’ Mixed strategy: Depot for overnight, public for top-ups if needed

Step 3: Determine Replacement Schedule

Plan:
β€’ Replace oldest/most high-mileage lorries first
β€’ Phase replacement over 3-5 years (not all at once)
β€’ Time replacements with trade-in value maximization

Step 4: Get Pre-Approved Financing

Before shopping for electric lorries:
β€’ Get pre-approved for EV financing
β€’ Allows immediate purchase when right vehicle found
β€’ Positions you to take advantage of government incentives

The Bottom Line: Electric is the Future, Financing is the Enabler

Malaysia's 2030 emissions targets require transport sector electrification. Government tenders increasingly require electric vehicle capability. Major corporations demand green logistics from their suppliers.

The higher upfront cost of electric lorries is justified by:
β€’ 70-100% lower operating costs (fuel + maintenance)
β€’ Access to restricted urban zones and government contracts
β€’ Regulatory compliance (avoiding future diesel restrictions)
β€’ Environmental leadership (competitive differentiator)

0% down payment financing makes electric lorry acquisition accessible without straining capital. Purchase the lorries, install charging infrastructure, and benefit from operating cost savings that cover financing costs.

Don't let the green transition wait. Join 4,000+ businesses who have trusted Ing Heng Credit since 1985.

Ready to Go Electric?

Finance electric lorries and charging infrastructure with 0% down payment. Get approved in 24 hours and future-proof your logistics business.

Contact: +60175700889 (WhatsApp) | 03-3324 8899 (Phone)

Chat on WhatsApp