EV Demand Expected To Soar In 2023 - MAA

Because of tax incentives and the prospective introduction of more reasonably priced EVs, the demand for electric vehicles (EVs) is anticipated to increase significantly in 2023.

According to Datuk Aishah Ahmad, head of the Malaysian Automotive Association (MAA), 2,093 EVs had been registered as of October 2022.

In a town hall meeting with representatives of the automotive industry yesterday (Dec. 22), Deputy Minister of MITI Liew Chin Tong stated that the automotive industry's future in Malaysia is promising and that its primary objectives should be investment in technological advancement and the transfer of knowledge and expertise in order to create a strong local industry.

In a recent report, Fitch Solutions predicted that due to government tax incentives to encourage adoption, passenger EV sales in Malaysia will expand fast in 2023, albeit from a low base.

The research department projects a 45.6% increase in passenger EV sales in Malaysia to 4,449 units by 2023.

With the present tax benefits on completely knocked-down (CKD) and completely built-up (CBU) automobiles, "MAA feels we can attain this (Fitch Solutions' forecast) sales in 2023," Aishah told StarBiz.

For battery electric vehicles, there are import and excise duty concessions in Malaysia (BEVs). The exemptions are valid for locally assembled models until December 31, 2025, but only for CBU vehicles through 2023.

There was a suggestion to prolong the exemptions for CBUs by another year in the newly introduced Budget 2023.

The government firmly supports the EV agenda, according to recent remarks made by Tengku Datuk Seri Zafrul Abdul Aziz, Minister of International Trade and Industry.

According to Tengku Zafrul, who was mentioned, the government is spearheading initiatives to attract EV investments and aspires for EVs and hybrid vehicles to make up 15% of the total industry volume (TIV) by 2030 and 38% of TIV by 2040.

The government wants 10,000 public charging stations for these eco-friendly automobiles by 2025, Tengku Zafrul remarked.

Such goals, according to Aishah, are reachable if all tax incentives for EVs are maintained, the government's plans to install public charging stations across Malaysia are carried out, and all necessary infrastructure is put in place to support the growth of the EV segment as anticipated in 2023 and beyond.