Malaysia to impose strict emissions standards, limit production of non-EEV cars to promote EV adoption

In an effort to promote the adoption of electrified vehicles (xEVs), Malaysia will implement strict exhaust emissions standards to limit the production of non-EEV cars. This was revealed in the National Energy Transition Roadmap (NETR) by the ministry of economy, which outlines initiatives aligned with the country’s goal of achieving net-zero greenhouse gas (GHG) emissions as early as 2050.

According to the NETR (announced in August this year), transportation still contributes significantly to GHG emissions in Malaysia, primarily driven by internal combustion engine (ICE) vehicles. It added that Malaysia ranks highest in terms of car ownership compared to other nations in the East Asian region with a car ownership penetration of nearly 400 per 1,000 people in 2018.

To address the matter, the NETR builds on existing national targets outlined by the Low Carbon Mobility Blueprint (LCMB) and National Energy Policy 2022-2040 (DTN). Among the key targets laid out include increasing the share of xEV four-wheelers in the vehicle fleet to 80%, continued improvements in ICE fuel economy as well as fostering robust local electric vehicle (EV) manufacturing capabilities to achieve 90% local xEV manufacturing.

Malaysia to impose strict emissions standards, limit production of non-EEV cars to promote EV adoption

One of the initiatives to achieve these targets was already mentioned at the start, and that is to implement stringent emissions standards to limit non-EEV manufacturing. The term ‘EEV’ refers to energy efficient vehicles, which is a programme that was first introduced with the National Automotive Policy (NAP) 2014.

The programme outlines specifications in terms of carbon emission level (g/km) and fuel consumption (l/100 km) that a vehicle must meet in order to qualify for EEV status (and incentives for the vehicle manufacturer) – we’ve covered this topic in-depth in the past. EEVs also include fuel efficient vehicles, hybrids, EVs as well as alternatively-fuelled vehicles (CNG, LPG, biodiesel, ethanol, hydrogen and fuel cell).

Even so, in the years since its introduction, our EEV standards are purely based on fuel consumption/vehicle weight and do not factor in carbon emission levels. As such, we’ll see how CO2 emissions will be enforced in accordance with the NETR. Malaysia has the National Emissions Test Centre in Rawang, which is paid for by Perodua and open to all brands.

With stricter specifications needed to be met, vehicle manufacturers would be pushed to make cars that are more eco-friendly – xEVs would fit the bill. Additionally, the NETR will incentivise companies to invest to build local manufacturing capacity and capability, with a notable accompanying initiative being identifying key localisation opportunities in EVs.

Malaysia to impose strict emissions standards, limit production of non-EEV cars to promote EV adoption

Other initiatives involve increasing EV adoption, including continuing co-funding of public charging infrastructure, expanding product awareness and model availabilities of EVs as well as reduce regulatory challenge in regards to setting up charging infrastructure. The ministry of investment, trade and industry (MITI) will be championing these initiatives, which are bundled under the title ‘Accelerate electrification of light vehicles segment (E4W)’.

So, what do you think of this initiative to boost EV adoption in Malaysia? If implemented, we may soon see cars with high fuel consumption and/or carbon emissions no longer allowed on sale in Malaysia. Is this the right way forward? Comment below.

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