BMW Group Seeks Clear Guidelines to Advance CKD EV Plans in Malaysia

During a recent media roundtable, BMW Group Malaysia emphasized that it is actively engaging the government to support locally-assembled (CKD) electric vehicles (EVs) in light of upcoming changes to tax exemptions that would drastically affect EV adoption.

Starting in 2026, fully imported (CBU) EVs will no longer be eligible for tax breaks, while exemptions for CKD EVs will extend only until the end of 2027.

Jean-Philippe Parain, BMW Group’s Senior Vice President for Sales in Asia Pacific, Eastern Europe, the Middle East, and Africa, highlighted the importance of clear, long-term policies to sustain investment beyond the exemption period.

He also noted that reducing subsidies could hinder EV adoption, as seen in other markets, making a carefully managed transition crucial.

Parain expressed optimism about Malaysia's EV growth, citing a 19% adoption rate (1,600 units) in the first nine months of the year—surpassing the regional average and aligning with global trends.

However, he acknowledged that Malaysian consumers value variety, reinforcing BMW’s strategy of offering a diverse lineup, including plug-in hybrids, mild hybrids, and fully electric vehicles, to meet varying needs.

To support the shift to electromobility, BMW Group Malaysia is working with local partners and the government to expand the EV charging ecosystem. Efforts include rolling out fast-charging infrastructure nationwide and providing home charging solutions such as BMW’s wallbox systems.

Parain underscored that transitioning to EVs requires addressing infrastructure, adapting to market dynamics, and catering to customer preferences, ensuring a seamless shift toward sustainable mobility.