The Malaysian government has set an ambitious target for electric vehicles (EVs) to account for 20% of annual new vehicle sales by 2030, encompassing both passenger and commercial categories. As of September 2024, EV sales have reached 5.11% of the total annual volume, a notable increase from 4.12% recorded for the entirety of 2023.
The Ministry of Investment, Trade and Industry (MITI) reported that the adoption of battery electric vehicles (BEVs) has grown significantly in recent years. Total BEV sales stood at 15,876 units in 2024 and 13,513 units in 2023, a sharp rise compared to 3,146 units sold in 2020.
Efforts to Build a Strong EV Ecosystem
MITI credited the improved numbers to the collaborative efforts between government ministries, agencies, and industry players. Before 2018, the EV market in Malaysia was minimal, with limited adoption and infrastructure.
To support the sector’s growth, the government has rolled out a series of initiatives, including:
- Tax exemptions for imported completely built-up (CBU) EVs until the end of 2025.
- Full exemptions on import duty, excise, and sales tax for locally assembled EVs until December 2027.
- A commitment to establish 10,000 EV charging stations nationwide by 2025.
- Full tax relief for BEVs from 2022 to 2025.