The rising in carbon emissions from the transportation sector has making ASEAN countries to seek sustainable alternatives, with electric motorcycles (EM) emerging as a promising solution. However, the slow adoption rate of EMs, due in part to high investment costs and limited availability of charging infrastructure, poses significant challenges. This research is motivated by the need to evaluate and develop a cost model that aids policymakers in determining the most cost-efficient subsidy strategies to promote EM adoption and to reduce the carbon emission from transportation sector.

A cost model was developed using the Equivalent Annual Cost (EAC) method to quantify the total investment required for both electric motorcycles and their supporting charging infrastructure. The study employed a three-phase approach: cost model formulation that compatible with Malaysian EM ecosystem, simulation of various subsidy scenarios, and a fuzzy win-win analysis to identify a win-win situation between the government, EM users, and charging operators. A comparative analysis with a case study from Indonesia was also conducted to refine the model and establish a generic cost model that applicable across the ASEAN region.

The simulation results revealed that a targeted subsidy strategy can effectively balance the financial burdens between stakeholders while enhancing the economic feasibility of EM adoption. The simulation results also revealed that using EM with battery swap system is more economic feasible to increase the EM adoption. This research contributes to accelerating the adoption of electric motorcycles by providing a practical, policy-oriented cost evaluation tool, which can be instrumental in formulating investment and subsidy strategies within the ASEAN market.