EVs in Malaysia may reach 15% of TIV target before 2030, more CKD EV models within two years: MARii

Electric vehicles in Malaysia are set to see significant growth in terms of market share, according to Malaysia Automotive, Robotics and IoT Institute (MARii) chief executive Azrul Reza Aziz.

Speaking to paultan.org today, the CEO of the agency under the ministry of investment, trade and industry (previously known as the ministry of international trade and industry) said that more locally assembled (CKD) electric vehicles will arrive on the Malaysian market by 2025.

The market for EVs in Malaysia is set to be liberalised after 2025, MITI minister Tengku Datuk Seri Zafrul Abdul Aziz said earlier this week. From 2025, the adoption rate of electric vehicles in Malaysia “will speed up,” MARii CEO Azrul said.

While the national target for electric vehicles is for the type to comprise 15% of total industry volume (TIV) by 2030, MARii predicts that EVs will reach that percentage even sooner. “Based on our projections, we can achieve [the 15% target for EVs] earlier than 2030,” Azrul added.

The latest excise duty and sales tax exemption for locally assembled electric vehicles was extended until December 31, 2027, a further two years on from the original deadline that was at the end of 2025, and the same applied to components used in local CKD assembly of EVs. Meanwhile, import and excise duties for fully imported EVs was extended to December 31, 2025.

This was as updated in the retabled Budget 2023, though this was not announced as part of finance minister and prime minister Datuk Seri Anwar Ibrahim’s speech at the time.