MAA: Government focusing on EVs now; there will be no extra incentives for mass market ICE-powered cars

MAA: Government focusing on EVs now; there will be no extra incentives for mass market ICE-powered cars

When it comes to regular internal combustion engine (ICE) powered vehicles, do not expect further incentives by the government for the auto industry and car buyers, as policymakers are focused on electric vehicles (EVs) now. This was conveyed by Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad at the auto club’s 2022 review yesterday.

“As far as I know, we’re not expecting anything on ICE cars because the focus of the government right now is on EVs. We have a MITI task force on EVs that meets every month to discuss EVs, and all the government agencies and ministries are all there to discuss what needs to be enforced to make sure that EVs sell in Malaysia,” Aishah said when queried on incentives for buyers of regular cars.

“The focus is to make sure that it’s a green environment by 2050. The focus is more on EVs,” she added, referring to Malaysia’s goal to be carbon neutral by 2050, announced in the 12th Malaysia Plan in 2021.

Hybrids are seen as a stepping stone to full battery electric vehicles, the first step of the electrification ladder. They’re proven in the market, a known quantity, and less expensive than EVs. Japanese giants Toyota and Honda were the first to champion hybrids more than a decade ago, and both are still in the game today thanks to government incentives. Aishah said that MAA will lobby for that to continue.

“Hybrids, we also will be appealing to the government to continue and improve on hybrid incentives, because people will first buy hybrids before they convert to EVs. The government has not really scaled down on hybrids (incentives),” she said. However, hybrid incentives will not last forever. “Even for EVs, they intend to reduce incentives once there are more on the road,” she added.

It was always unlikely for car buyers to get more sweets from the government, which in case you forgot, isn’t exactly flush with money. The pandemic brought about a sales tax exemption programme that was extended a couple of times, and many had already enjoyed the SST savings, as seen by last year’s record TIV.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • seancorr on Jan 20, 2023 at 2:23 pm

    Better train our abang Bomba to deal with EV fires. These things burn for hours to days and imagine the horror when one catches fire in a mall car park.

    Like or Dislike: Thumb up 27 Thumb down 1
    • GOT TO REMOVE EXCISE TAXES HELLOOOO.

      MAIN PURPOSE WAS PROTECTIONISM 40 YEARS AGO, TIME TO REMOVE !!

      Like or Dislike: Thumb up 30 Thumb down 3
      • Angry Voters on Jan 20, 2023 at 9:40 pm

        All the rich for one PM and one PM for all the rich! Be damned the poor they didn’t vote for him.

        Like or Dislike: Thumb up 9 Thumb down 2
    • Rakyat Malaysia on Jan 20, 2023 at 6:01 pm

      This gomen only cares for the rich. Habeslah rakyat Malaysia!

      Like or Dislike: Thumb up 17 Thumb down 5
  • ROTI CANAI on Jan 20, 2023 at 2:27 pm

    support the rich, tax the poor

    Like or Dislike: Thumb up 21 Thumb down 6
  • Bieight8 on Jan 20, 2023 at 2:30 pm

    More incentives needed example like toll exemption,free public parking, lower electric bill and cash rebate

    Like or Dislike: Thumb up 4 Thumb down 6
  • A bit too hopeful on Jan 20, 2023 at 3:12 pm

    Ignoring the fact that the price of EVs are for bangsawan only (as one can see from the hot sales that BMW / Volvo reported), infrastructure still got problem.

    Bottom line is, what other incentive are they giving out for EVs? because right now with prices of EVs being >150k, its out of the budget for mass market adoption.

    Like or Dislike: Thumb up 7 Thumb down 14
    • To be fair, no matter whatever you said, all EV cars should give cheaper price. Let’s make it fair to all but not ignoring the facts on bangsawan

      Like or Dislike: Thumb up 15 Thumb down 1
      • cuckoo jeow on Jan 20, 2023 at 3:55 pm

        zaman ev for bangsawan only was maybe 5 years ago. now you have byd atto3 and ora good cat under rm150k. soon you will have things like byd seagull, myvi size, under 100k. maybe even under 70k. lets not whine and kutuk kutuk these effort else we will be soooooooo superrrrrr farrrrrrrrr behind indonesia and thailand all over aagain

        Like or Dislike: Thumb up 12 Thumb down 27
        • To be fair, let everyone people will buy EV on what they like. Not only just you bro

          Like or Dislike: Thumb up 8 Thumb down 0
        • Isaac on Jan 20, 2023 at 4:36 pm

          Especially for mercedes fanbois also don’t kutuk kutuk and whine on other brands including bmw, volvo, volkswagen and audi. Let’s celebrate and don’t poke others that mercedes fanbois are okay with their company while poking on other brands that feel not good

          Like or Dislike: Thumb up 6 Thumb down 0
        • And like I said, no matter what it is, just give all free tax for EV cars for all brands

          Like or Dislike: Thumb up 7 Thumb down 1
      • And like I said, no matter what it is, just give all free tax for EV cars for all brands

        Like or Dislike: Thumb up 10 Thumb down 1
    • Tax with lemon law is better where benz reliability is not good than other luxury brands

      Like or Dislike: Thumb up 5 Thumb down 0
  • farghmee on Jan 20, 2023 at 3:30 pm

    harga marhaen ke EV?
    setau aku marhaen duk umah flat, bukan landed.
    kt mana nk cucuk plug utk cas?

    kalu org kaya kena ada potongan harga utk beli EV, maksudnya dia xcukup kaya..

    to get big improvement on ecosystem, kena target orang ramai.

    Like or Dislike: Thumb up 18 Thumb down 2
    • Harry on Jan 22, 2023 at 8:29 am

      Masalah kita disini kemudahan infrastruktur utk EV belum lagi disediakan secara meluas, lepas tu struktur tarif elektrik utk kenderaan ev juga tidak dibincangkan. Harga kereta ev pula, harus ada insentif yg bagus kepada pembuat kereta tempatan yg mengeluarkan kereta ev atau hybrid supaya harga dpt diturunkan menjadikan ia mampu milik. Di negara luar, harga kereta ev yg diimport dari china setara dgn pendapatan perkapita mereka. Manakala disini, kereta ev import(BYD) masih agak mahal berbanding dgn purata pendapatan kita disini. Kerajaan harus mengambil langkah untuk “memampukan” pemilikan kereta ev kpd rakyat marhaen memandangkan harga bahan api yg semakin meningkat dan tahun ini, dijangka akan terus meningkat. Subsidi bersasar, tidak akan dpt membantu semua.

      Like or Dislike: Thumb up 3 Thumb down 0
  • Bob Mal on Jan 20, 2023 at 3:56 pm

    Government talks so much about EVs now but still no concrete plan unlike Indonesia and Thailand which is why all FDIs fly there all thanks to who….

    Like or Dislike: Thumb up 7 Thumb down 0
  • Dei, tax the rich la oi. Rich people going around in their iX, Tesla, eQbenz while poor people slugging out.

    Like or Dislike: Thumb up 3 Thumb down 8
  • Honestly, I think our government should give whatever incentives they can realistically afford to boost domestic EV adoption rate. After all, EV sales success in Europe, China, Korea, Singapore etc. is mainly due to generous rebates and serious incentives from their governments, funded by a very wealthy or very large (population) taxpayer base.

    Still, for small developing countries like ours, EVs are mainly toys for the rich (T20), i.e. those who can afford to stay in grounded property/ luxury condo in Klang Valley and Penang island, those who already have a new Myvi/ X70/ Civic/ Continental car under their partner’s/ children’s name. It is these people who will grow the local EV user base, alongside government agencies (official cars) and private companies (company cars).

    Rest of us will have to wait until EV prices drop (assuming, they actually do), EV range increases to 4-digit levels (using lighter/more efficient batteries), EV battery swapping becomes standardized (currently in early stages), charging infrastructure is installed in existing fuel stations nationwide (yes even in your kampung area), and electricity prices remain stable in coming decades (alternatively, if price of petrol increases exponentially).

    In other words, we will have to wait a long, long time until EVs become mainstream here (and in most developing countries). Until then, our government has to strike a compromise between petrol/diesel-powered cars and electric/hybrid cars. Concurrently, public transport infrastructure must be developed and improved (thumbs up to Anthony Loke, back in business), mainly for those who cannot afford to drive or cannot tolerate the insane traffic jams these days. Personally, I just hope work-from-home becomes more mainstream…

    Like or Dislike: Thumb up 10 Thumb down 6
    • Angry Voters on Jan 20, 2023 at 9:43 pm

      Not everybody can have the luxury of working from home especially the lower segments and poor, made worse if they are deprived of the necessity to drive a car to work daily.

      Like or Dislike: Thumb up 5 Thumb down 0
  • Sick & Tired on Jan 20, 2023 at 6:06 pm

    Thumbs up to Anthony Loke, back in business trying to make cars more expensive for the regular people as his DAP party has said so
    https://paultan.org/2022/05/31/driving-a-car-in-malaysia-should-be-made-a-luxury-not-a-necessity-says-dap-assemblyman-liew-chin-tong/

    With more focus on EV, only the rich will be allowed to drive soon. Thumbs up mate.

    Like or Dislike: Thumb up 13 Thumb down 3
    • Harry on Jan 22, 2023 at 8:36 am

      If they do that, then malaysia will be left behind our neighbours. Indonesia, thailand, vietnam are pushing the EVs in their country as they know that fuel is getting more and more expensive. Malaysia in the other hand, still studying studying studying….a standard statement from government….”we are studying the use of EVs…..”

      Like or Dislike: Thumb up 1 Thumb down 0
  • Suhaili on Jan 21, 2023 at 8:14 am

    If i am working as a plumber, wireman, aircond installer, gardener, driver how am i going to work from home coz all my work need transport. Please think of this rakyat.

    Like or Dislike: Thumb up 2 Thumb down 0
    • PH Supporter on Jan 21, 2023 at 10:25 am

      The poor and the regular working class has no place in Pakatan Malaysia. Please go to Indon you poorfags. New Malaysia is only for the rich.

      Like or Dislike: Thumb up 3 Thumb down 3
    • stasta on Jan 24, 2023 at 2:09 pm

      regular working class earning sgd. what didn’t you know millions of Malaysian have worked or are working in Singapore ?

      x suka keluar.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Lawrence Chong on Jan 22, 2023 at 12:22 pm

    Time to reduce the price of EV to the range of RM85000 -RM125000.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mike Tee on Jan 22, 2023 at 7:07 pm

    We could argue the point that EV is not the way for a greener motor policy but I think the horse has bolted for the argument against it, I mean it is only 13 years from now that you *will not* be able to buy a ICE car in EU.

    But my point is boy do some of you have a thing against EV. The tipping point for EV adoption in terms of affordability, range, charging time, battery longevity, etc will come and pass and some of you will still argue against it and will dogmatically avoid buying one. Why? This is not a religious/political discussion, if it works for you and suits your transportation needs, use it. If you like the sound, smell and feel of an ICE, more power to you, buy one, no need to scream at EV users, call them names, etc.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Fur ODC on Jan 25, 2023 at 9:57 am

    Report ni maksudnya, current ICE punya tax incentive akan maintain as per skarang. Tiada new incentive.
    Lps tu, new incentive tu gomen akan concentrate bagi pada EV cars, supaya dapat turunkan harga keta EV secepat mungkin supaya dpt dimiliki oleh rakyat marhaen. Tu lah pointnye.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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