Malaysia’s electric vehicle push gets a turbo boost, but speed bumps lie ahead

ATTRACT Buyers WITH POSITIVE Plans

A local car parts supplier, EP Manufacturing Berhad, signed a memorandum of understanding in August with BAIC Motor Corporation Ltd, one of China’s largest automakers, to promote the local production of autos, including EVs, in Malaysia.

Chinese automaker Geely, which owns a 49.9 % stake in Malaysian manufacturer Proton, will spendRM30 billion on the creation and commercialization of the Automotive High-Tech Valley ( AHTV ) in Tanjung Malim, Perak, with an emphasis on EV. In addition, & nbsp,

However, Mr. Shahrol Halmi, co-founder of the Malaysia Electric Vehicles Owners Club( MyEVOC ), told CNA that Tesla’s actions caused the most controversy regarding electric vehicles( EVs ) because many people were taken aback by how” affordable” they were in comparison to other brands. & nbsp,

It is a major development. When BYD was first introduced earlier this year at RM170, 000, it was a big seller. However, he said,” You don’t need to spend much more money to get the Tesla model Y, even though the cost of an equivalent BMW i4 is significantly higher.”

In the Malay marketplace, there are now more than 40 models of EVs for sale.

Along with Tesla, they also sell vehicles from Chinese manufacturers BYD, Ora, and Neta as well as models from BMW, Volvo, Mercedes, Hyundai, Rolls Royce and other newer models on the Indonesian business. & nbsp,

According to Mr. Shahrol, Malaysia’s EV push started when the government approved the Low Carbon Mobility Blueprint ( LCMB ) in October 2021. This policy framework sought to cut emissions from the transportation sector, which is the second-largest emitter of carbon dioxide( CO2 ) after the energy sector.

The government announced full exemptions from trade and excise duties during the 2022 Budget, as well as sales tax deduction for electric vehicles, road tax exclusion for EVs, and income tax breaks for the order of getting facilities. & nbsp,

The import and excise duty exemptions on imported completely built-up ( CBU ) units were then extended by the government this year to 2027, as well as for locally assembled, completely knocked-down ( CKD ) EVs.

While CKDs are vehicles produced in the nation, CBU refers to vehicles that are imported. & nbsp,

Additionally, until 2025, EV people are exempt from paying road tax. & nbsp,