Eclimo’s bumpy journey in building Malaysia’s first electric scooter
In 2008, Dato’ Dennis Chuah combined two of his lifelong passion – bikes and batteries – and charged into what would become one of the hottest sectors over a decade later.
Eclimo Sdn Bhd, the company Chuah co-founded, is the manufacturer of Malaysia’s first electric motorcycle. In recent years, electric vehicles (EVs) have been creating major buzz – global sales more than doubled within a year to hit 6.6 million units in 2021, according to the International Energy Agency – as climate change strengthened government and consumer convictions to reduce carbon emissions. Improved technology further encouraged adoption.
The heightened interest in EVs drives optimism for Eclimo, which is forecasting a two-fold increase in business within the next few years. According to Chuah, the Penang-based company has an optimistic cash flow and is expected to turn a profit in the next three to five years. He adds that Eclimo also sees yearly revenue growth of 30%.
There is one roadblock to growing the EV user base: price. Without mainstream adoption, electric motorcycles are more costly than petrol motorcycles. Eclimo scooters are priced between RM10,501 to RM24,500, while a petrol motorcycle’s price can be as low as RM3,000 to RM4,000. To lower the barrier of entry, Eclimo is also providing an option to lease its motorcycles at RM600 a month.
Despite the hurdle, Chuah is confident about the viability of his business. In fact, he is convinced that all motorcyclists in Malaysia will eventually switch to using Eclimo motorcycles. He tells Asia Connects why.
AC: What drove you to start a business making electric scooters?
Dennis Chuah: I didn’t come from a well-to-do background. Motorcycle has been the main transport for my family to get around. But my interest in two-wheelers started when I was still in school; a few of my wealthy schoolmates had racing bicycles. I could not afford one. So, I visited dumpsites to collect any bicycle parts that I could find and went to bicycle shops to watch and learn how bikes are put together. With a lot of tinkering and observation, I made my own racing bicycles and even ended up selling them to my schoolmates! I also assembled my motorcycle out of scrapped parts to cut costs when I got older.
But why I decided to start an electric scooter business was because I’ve already been working with lithium batteries since 2000. I ran a business selling lithium batteries to a Japanese company producing radio-controlled cars and planes, then for military walkie-talkies, and then for power banks. You see, at the time, lithium battery was still a new technology. EVs seem to be the natural next step.
Lithium batteries are good for electric vehicles because of its high energy density, and it can be recharged within a relatively short time. That’s basically how I came to spend 22 years – and counting – in the battery industry. Given my background in batteries and building bikes, the rest is history.
AC: EVs are all the rage now. But you started Eclimo in 2008, when the technology was obscure and out of mainstream reach in Malaysia. What made you decide to take the plunge?
Chuah: Going into this, I already knew that the cost of building an electric motorcycle would be higher than a petrol motorcycle. But I believe that the design, technology and performance that I provide can convert all motorcycle users in Malaysia to switch to using Eclimo. That’s what entrepreneurship is – a combination of confidence and gut feeling. But, coming back to reality… [laughs] in 2008, when I wanted to build the Eclimo scooter, I thought it’d only take me a month to figure it out. I ended up spending five years on research and development (R&D). Five years! Where would one find the motivation and passion for keeping going for that long? Because I believed. I believed that all motorcycle users in Malaysia would want to buy my electric scooter.
AC: What made the R&D process longer or more difficult than expected?
Chuah: I knew that I had to develop a vehicle that makes sense for motorcycle users. I’ve been a motorcycle user myself. One of the top concerns is convenience – the battery has to be able to sustain a substantial distance before needing another charge. Then, we had to ensure ease of recharging; charging the batteries should be as easy as charging a mobile phone. We also had to ensure that the electric scooter could run on high speed. So these were all the issues we had to solve.
Our scooter was finally ready and approved by the Road Transport Department Malaysia (JPJ) in 2012. At the time, the Eclimo scooter’s range (the distance an EV can travel in a single charge) is 100km. It can run at a maximum speed of 100kph and you can charge the batteries using any wall socket. These days, we have doubled the range to 200km.
AC: But why were you so confident about the appeal of the Eclimo electric scooters? What pain points or gaps does it solve for the current motorbike market?
Chuah: Think of it this way: why do people usually buy motorcycles in Malaysia? It’s because they could not afford a car. Motorbikes are the cheapest private transportation they can buy. But motorcycles still need maintenance, and every time you send it to the workshop, the waiting can take up half a day. So it costs money and the time that you could be working and earning an income.
The more parts a motorcycle has, the more maintenance and fixes it would require. For a petrol motorcycle, you may need to change the spark plug, engine oil, etc. In comparison, an electric bike consists of only 25% of the parts that a petrol motorcycle needs. So, yes, there will still be some parts of an electric bike that needs to be repaired, as the tyres or brakes. But it is substantially lesser than a petrol motorcycle. For Eclimo scooters, we also send a mobile repair team to your doorstep, so you can relax in your own home while we handle the maintenance.
Then, there is the environmental issue. As EVs are made with fewer parts compared to petrol vehicles, manufacturing an electric motorcycle requires fewer natural resources. Petrol vehicles are also a major source of carbon emissions. Only 30% of every litre of petrol pumped into it powers the bike for petrol motorbikes. The rest are released as carbon dioxide that pollutes the air. However, over 90% of every kilowatt of electricity charged into the batteries for electric motorcycles are used to power the vehicle. It does not emit carbon and is much more efficient in using energy and resources.
Of course, charging the battery still incurs a carbon footprint, as most of our country’s electric supply runs on coal. But I believe that if you want to save the world, you have to start in your own home. By using an electric vehicle, you are not exposing your neighbourhood and community to more carbon emissions. It is also up to the consumers to demand for clean energy like solar or geothermal power from our power plant. If there is demand, there will be supply.
AC: Speaking of demand, how did you secure your first customers?
Chuah: Around 2012, KFC started providing delivery services, and they were using petrol motorcycles. I sensed an opportunity. I wanted to know what problems they could be having with petrol motorbikes. So, I approached delivery riders during their breaks, bought them drinks, and chit-chatted. I learned that the riders barely had time to refuel their motorcycles due to the high volume of deliveries. Then, there was also the issue of having to send the motorbikes for maintenance, which was disruptive to the delivery flow.
So, I proposed Eclimo electric scooters to KFC. Eclimo motorcycles could go a long distance in a single charge without stopping for refuel. For motorcycles needing repair, I also offered a one-to-one replacement so that there will be minimal downtime. KFC loved the idea, though the higher price of Eclimo scooters gave them pause. So, I told KFC, “It’s okay, I will lease the motorcycles to you at a monthly rate of whatever you are paying per month for petrol motorcycles – including for fuel and maintenance.” KFC agreed, and they used Eclimo bikes for food delivery over the next five years.
With such a big-name customer on board, I was able to expand Eclimo’s client base, which would later include the Royal Malaysia Police, DHL, and the state governments of Penang and Malacca.
AC: Eclimo has operated in the Northern Region of Malaysia for the past 14 years. Has the ecosystem shaped Eclimo in any way?
Chuah: The direction of Eclimo has always been closely intertwined with the Northern Region market. One example is the Penang2030 plan launched by the state to improve its livability, economy and environment. The plan laid out a specific target for 50% of the motorcycles in the state to be electric powered. Meanwhile, Eclimo is working on expanding our user base in Penang. The state is an excellent market for electric scooters – it has many motorcycle users, and Penang’s relatively small size meant that you could get to most of your destinations within a single charge.
The Northern Region’s thriving electronics industry is also beneficial to our 100%-Malaysian-owned business. We could not have built Eclimo’s electric scooters on our own. We need many electronic components, talented designers and engineers, and manufacturing partners – all of these are abundant in the Northern Region. I can talk for hours about what I want Eclimo electric scooters to be, but these talents and partners are the ones who will help make it a reality.
