Malaysia Targets 38% EV Market Share Growth By 2040

Malaysia is set to grow its overall EV market share to 38% by the year 2040 under the newly-launched Low Carbon Aspiration 2040 initiative.

Unveiled by our beloved prime minister, Datuk Seri Ismail Sabri Yaakob, this new initiative will be parked under the National Energy Policy 2022-2040 which was also announced earlier this week.

PM to chair a newly-formed National Energy Council

To ensure that all 12 strategies and 31 action plans identified under the National Energy Policy 2022-2040 will come into fruition in line with Malaysia's five-year plans, Datuk Seri Ismail Sabri himself will be chairing the newly-formed National Energy Council.

The council will involve all the relevant ministries and agencies. Apart from pushing up the use of public transport to 50% by 2040, the Low Carbon Aspiration initiative will also see the expansion of the country's EV market share to 38% as well as alternative fuels (B30 biodiesel) for heavy vehicles.

MAA wants EV incentives for up to 10 years

The Malaysian Automotive Association (MAA) has proposed the idea of extending the current EV incentives for up to 10 years. An extension on the current import and excise duty exemptions for EVs under the 2022 Budget has proven to be effective with more and more BEV passenger cars seen on the roads today.

MAA also reported that a total of 274 EVs were sold in Malaysia last year from the country's total industry volume (TIV) of 508,911 units. The proposal to further extend the EV tax breaks will not only encourage more EV adoption but will also work in line with the newly-unveiled Low Carbon Aspiration 2040 initiative.