There have been a lot of talk about electric vehicles (EVs) even before the government announced duty-free incentives for battery-powered cars in Budget 2022, but did you know that only less than 300 EVs were sold in 2021?
In today’s 2021 annual review virtual press conference, Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad revealed that just 274 units of new EVs were registered last year (by MAA members, which are the OEMs, not including parallel/grey market imports). That’s minuscule when you consider that last year’s total industry volume (total sales) was 508,911 units.
However, we’re set to see EV numbers go up by a fair bit this year as Budget 2022 incentives kicks in. “For 2022, it will be alot higher as a lot of companies are bringing in EVs because of the tax exemption. We don’t have the percentage but it will be very much higher,” Aishah said.
“For EVs, since the government announced the exemption on excise duty, import duty and sales tax, there have been a lot of interest in EVs and bringing in EVs. The government itself, as far as I know, they’re ramping up the policies to make sure that there will be more EV production in Malaysia. There’s a great deal of emphasis of EVs now,” she added.
The government’s ultimate aim is to have car companies set up EV bases in the country, and Aishah said that the tax exemption opening move has caused many to sit up and take notice.
“As far as policy (is concerned), the very fact that they announced tax exemption for EVs has stimulated OEM interest to come and invest in Malaysia. There have been a lot of questions and requests from many companies to come and invest in EVs in Malaysia. I’m told that the government is very serious in making sure that EVs will be the future of the type of vehicles to be implemented in Malaysia,” she said.
“We think that the incentive for CBU EVs for two years is a bit of a short timeframe, and we will request the government to consider extending it in some form or another. But it is a good start. For CKD operations, there are some members who are already talking about producing EVs in CKD form in Malaysia,” the MAA chief added.
Curious about EVs and want to take advantage of this limited-time tax-free window? Check out our buying guide of all the pure EVs currently sold in Malaysia, and what’s coming soon this year.
Looking to sell your car? Sell it with Carro.
2 years is too short
After 2 years it will be back to square one and all the prices of EVs go up and RV comes crashing for the said models.
at the end of the day, T20s will benefit from the tax-free. M40 & B40 smile only see T20 enjoy new tax free car.
Just hope that AP holders and manufacturers do not hugely increase their margins to gain extra profit from the tax free status of EV and leave little to the end buyers.
policies to benefit the rich, syabas
Bila dah bagi, komplen.
Bila tak bagi, juga komplen.
Lebih xyah repair, kau org semua naik kuda atau kereta lembu dahhh…
u ni ingat kuda itu murah ke?
Mungkin dia sendiri naik kaldai yg lebih murah.
tax free? with price diff only 20-30k? whre got tax free?
Why is this woman still the president of MAA?? There should be a term limit. Give others a chance to lead.
Who? Pakatan clowns that had proposed 3rd national car & flying car projeks when they were in power?
True. We don’t need national cars (P1 & P2) anymore, and as per your earlier suggestion, we need more horses & bullock carts, especially horses & cows that can swim & amphibious bullock carts because of floods due to climate change.
Only landed property can have EV. How many cars in Malaysia park at road side (mostly illegal) or condo or low cost apartment? do the research and math you will know our EV future…
EV only make sense in countries that are more than 40% or 50% using renewable energy.
Our source of electricity is still from burning Coal and Gas which is still emitting CO2 anyway.
Hybrid cars are more suited for Malaysia considering the mix of fossil fuel to generate electricity in our country.
1 liter of petrol emits 2.3kg of CO2 and it can be used to travel 20km on a hybrid. While 1kWh from Coal emits 1kg and it can be used to travel 6.7km in an EV.
In short, Hybrid emits 115g of CO2 per KM while EV (using electricity from coal) generating 150 CO2 per KM. If the electricity is generated by gas, it will be 60g CO2 per KM. If its renewable, it will be close to zero emission.
There could be a higher adoption in Hybrid since we are lack of charging infrastructure and our home electricity tariff is by tier which puts people off from buying full EV cars.
Until we have a greener electric grid like Europe, I think Hybrid is a better option for us in next 10 to 20 years.
Only benefit the rich. The rich already rich why still give them more benefit ?
one full charge can last a drive from KL to JB during raya time along PLUS highway?