Malaysia’s Ambitious EV Goals: 80% Electric by 2050

In 2023, Malaysia’s battery electric vehicle (BEV) sales surpassed 10,000 units for the first time, subsidized by government subsidies. According to statistics from the Malaysian Automotive Association (MAA), new car sales in Malaysia in 2023 increased by 11% compared with last year, recording a historic high of 799,731 units. Among them, BEVs accounted for only 1.3% of the total or 11,159 units, nearly four times the 2,600 units sold in 2022.

In Malaysia, sales of internal combustion engine vehicles are strong, and the spread of electric vehicles is slower compared to Thailand, where the proportion of new car sales is already over 10%. However, the awareness of electric vehicles is spreading as domestic and foreign automakers enter the market.

The Malaysian government announced plans to increase the proportion of BEVs and hybrid electric vehicles to 80% by 2050 through the National Energy Transition Roadmap (NETR) in 2023. To achieve this, tax incentives are introduced. The government is implementing incentives that exempt tariffs and consumption taxes on imported finished vehicles, and road taxes on electric vehicles are also exempted for up to 25 years.

In the 2024 budget, individuals with an annual income of 120,000 ringgit (approx. US$25,400) or less can receive a subsidy of up to 2,400 ringgit (approx. US$500) when purchasing an electric motorcycle. Income tax benefits also apply to expenditures for charging facilities.

However, immediate efforts are needed to address the lack of infrastructure, such as charging stations. The Malaysian government aims to install 10,000 charging stations by 2025, but as of 2023, there are only a few thousand charging stations.

Proton, a Malaysian automotive company under China’s Geely Automobile, aims to launch its brand by 2025. Many other Chinese companies are actively entering Malaysia by building local factories.