Saturday, February 14, 2026

Annual EV utilization in Malaysia has jumped 14-fold since 2022, incentives for native EV components improvement – MITI

Annual EV usage in Malaysia has jumped 14-fold since 2022, incentives for local EV parts development – MITI

The funding, commerce and business ministry (MITI) has mentioned that annual EV utilization in Malaysia has jumped from 3,127 models in 2022 to 44,813 in 2025, Named experiences.

The 14-fold enhance was pushed by the federal government’s import and excise responsibility exemption for fully-imported (CBU) EVsMITI mentioned in a written reply to the Home of Representatives printed on the parliament web site lately.

“In step with the Nationwide Automotive Coverage 2020which targets to make Malaysia a manufacturing and export hub for Subsequent Technology Autos (NxGV), the federal government continues to encourage the native improvement of essential EV parts, together with batterieselectrical motors and superior driver help methods (ADAS) by means of tax incentive provisions to unique gear producers (OEMs) that utilise them,” it mentioned.

Annual EV usage in Malaysia has jumped 14-fold since 2022, incentives for local EV parts development – MITI

“The subsequent part is to encourage extra OEMs to implement native EV meeting,” it added. CBU EVs had been tax-free from Price range 2022 to December 31, 2025 – starting this 12 months, they’re topic to a 5-30% import responsibility (relying on origin nation and if there any free commerce agreements) + 10% excise responsibility + 10% gross sales tax (ST was there earlier than).

Additionally, they need to not be priced below RM250k and their mixed energy should not be lower than 200 kW (272 PS). All these are to encourage native meeting (CKD).

Carmakers already producing EVs in Malaysia embody Proton, Perodua, BMW, Volvo, Chery, Mercedes-Benz and TQWulingwhereas BYD, Zeekr, MG, Xpeng and Leap motor are amongst these planning or engaged on doing so.

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