Data from the Malaysian Automotive Association (MAA) revealed a total of 30,848 electric vehicles (EVs) were sold in 2025. This marks another year that sales of EVs went up year-over-year (YoY), with the percentage increase from 2024’s 14,766 units being 109%.
The same is also true of hybrid vehicles which saw 38,515 deliveries in 2025 to represent a 25% YoY increase from 2024 (30,796 units). Bundled together, the total number of electrified vehicles sold in Malaysia last year was 69,363 units – 52% more than the 45,562 units recorded in 2024.
The government’s decision to provide tax incentives for EVs, as announced during Budget 2022, has contributed to the growth in EV sales over the years. These incentives came into effect on January 1, 2022 and their deadlines have been extended since then, although some are now concluded. For fully-imported (CBU) EVs, the tax holiday ended on December 31, 2025, while locally-assembled (CKD) EVs still enjoy some exemptions until December 31, 2027.
As MAA’s table shows, sales of EVs amounted to just 278 units in 2021 prior to the incentives coming into effect. In the first year of incentives being applied in 2022, sales increased to 2,631 units (+846%) and on to 10,159 units (+286%) in 2022. The growth rate dipped in 2024 to 45%, although the number of EVs sold went up again to 14,766 units. The spike of 109% to 30,848 units in 2025 could very likely be due to customers rushing to take advantage of CBU EV incentives before they expire.
Hybrid vehicles also saw continuous growth throughout the years, from 7,875 units in 2021 to 19,988 units (+154%) in 2022, 28,055 units (+40%) in 2023, 30,796 units (+10%) in 2024 and to 38,515 units (+25%) in 2025. The introduction of more hybrid options by mass-market brands has helped in this regard.
While the sales gap between hybrids and EVs is a lot smaller compared to past years, things could change in 2026. Even though EV-related tax incentives have expired, we noticed that prices of CBU EVs have remained largely the same despite upward projections as much as 100%. The introduction of the Budi Madani RON 95 (Budi95) programme, which currently pins the price of RON 95 petrol at RM1.99 per litre, could also discourage EV adoption and affect demand.
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