Fitch Solutions firm BMI projects the Malaysian electric vehicles market to quadruple this year in terms of sales. However, its penetration rate is only expected to hit 1.8%.
Factors boosting the Malaysian EV industry
BMI reportedly claims that Swedish automaker Volvo and German Mercedes-Benz will significantly accelerate the EV uptake among Malaysian customers owing to their domestic production.
The research company further noted Mercedes‘ 2030 target to have EVs account for 30% of its overall local sales.
“Mercedes-Benz plans to have 30% of all its vehicles sold in Malaysia to be electrified vehicles by 2030, as Malaysia offers one of the highest EV penetration rates for its products globally.
Malaysia has witnessed a large number of automakers entering the market, giving consumers more choices.”
BMI
Meanwhile, Volvo accelerated the country’s commercial EV market with its popular heavy trucks.
BMI also stated in a note that Tesla will establish a regional HQ and service facility in the country. In addition, Chinese brand Neta also penetrated the country with its electric vehicle offerings.
Proton Holdings Bhd also developed a draft of its electrification road map that covers battery electric, plug-in hybrid, and pure hybrid vehicles.
Apart from that, the Malaysian government will also extend some of its EV incentives, including the following:
- Components import tax exemption for locally built EVs until December 2027
- Full excise tax and sales exemptions for CKD EVs until December 2027
- Exemptions for CBU EVs until December 2025
Moreover, local charging solutions providers are also free from income tax until 2032. Electric vehicle models will also be exempted from the country’s road tax until December 2025.
“We believe these measures will contribute to overall higher EV sales in the coming years as the cost to purchase EVs is reduced, thus offering better competition against internal combustion engine cars.”
BMI
See Also:
- Mercedes-Benz to launch an all-electric portfolio in Malaysia by 2030
- Malaysian PM commends Tesla’s efficient business operations
- Tesla finally brings its luxury EVs to Malaysia
- Tesla to penetrate the Malaysian EV market this month
- Tesla to penetrate the Malaysian auto market with its EVs, Supercharger Network, and Service Centers
These major government initiatives will undoubtedly attract more global automakers to penetrate the local market. In effect, Malaysia’s EV industry will continue to expand and hit its target of selling 100,000 EVs by 2030.
