Malaysian EV Market Buzzing Ahead Of Year-End Tax Changes

The Malaysian automotive scene is heating up as EVs from Tesla, BYD, and Proton gain momentum. Nov saw a jump in imported EVs as buyers rushed to grab cars before the tax exemption on fully imported EVs ended at year’s end.

Data from BIMB Research shows EV registrations hit 5,417 units in Nov, a 25% increase from Oct, with EVs now making up 4.7% of the market. The growth was powered largely by deliveries from Tesla, BYD, and Proton.

Even with the surge, analysts are keeping a cautious eye. BIMB notes that subsidy changes, tighter household budgets, and tough competition could slow things down. 

"But new EV launches by local automakers should help keep steady demand," it said. 

The situation is a bit like 2015, when a tax incentive sent car sales soaring before dropping the next year. This year, EVs are already over 40,000 units sold, nearly double last year’s 22,000, thanks to the fully imported tax break.

Looking ahead, excise duty hikes next year could push prices of locally assembled vehicles up 10% to 30%, while tax exemptions for local EVs remain until 2027. 

"However, charging infrastructure issues and the new RON95 petrol subsidy may slow the shift to EVs for mid-and lower-income buyers," The research house added.