Fitch Solutions has on Monday anticipated that passenger electric vehicle (EV) sales in Malaysia will expand in 2023, albeit from a low base, as a result of the implementation of incentives to encourage adoption.

The research house said in a report that according to its projections, sales of passenger EVs will rise by 82 percent in 2023, reaching a volume of roughly 5,840 units annually.

As more battery electric vehicles (BEVs) are introduced and give consumers more options, it predicted that plug-in hybrid electric vehicles (PHEVs) will lose market share in 2023.

“Since predicted good performance in both PHEVs and BEVs promotes EV adoption, we predict that total EV sales as a percentage of total sales will surpass the 1 percent threshold by 2024,” it said.

According to the report, Malaysia has unveiled measures to promote and stimulate EV adoption through incentives.

A road tax exemption for EVs has now been implemented along with a
subsidy of MYR2,500 ($600) for EV charging infrastructure purchases by consumers.

Furthermore, a 100 percent reduction in import duties on completely built-up EVs lasting up to December 31 2023 has been introduced.

It is noted that completely knocked down (CKD) EVs will be eligible for the suspension of duties until December 31 2025 along with sales tax and excise duty exemptions which will further improve the affordability for consumers due to the inherently high taxes on importing vehicles in the country.

The report also noted that Volvo Car Malaysia (VCM) has revealed intentions to export automobiles to Vietnam and the Philippines in 2023 in an effort to turn Malaysia into a hub for electric vehicles.

With the Swedish brand’s return to the nation (via PT Leading Vision Otomotif), the firm started exporting automobiles to Indonesia in 2022. Meanwhile, Thailand has been on its export list for some time.

The XC40 Recharge Pure Electric and C40 Recharge Pure Electric are currently both locally built (CKD) in Shah Alam, Malaysia, with the former debuting first in March 2022 and the latter following in December 2022.

Besides, Mercedes-Benz AG has achieved a new milestone in Malaysia in February 2023 with the introduction of its first domestically made EV.

At Mercedes-manufacturing Benz’s facility in Pekan, Pahang, the EQS 500 4Matic big car was put together.

According to Sagree Sardien, chief executive officer and president of Mercedes-Benz Malaysia, deliveries of the CKD (completely knocked down) EQS 500 4Matic, which stands at the top of the EQ line, will start in March 2023.

More EQ models would eventually arrive at the Pekan factory, but Sagree said the next CKD plans hadn’t yet been chosen by the firm.

Meanwhile, on January 31, 2023, Proton revealed a draft version of its roadmap, providing an idea of how it intends to move forward.

Back in 2021, Proton stated that it will enter the market when the time was appropriate and that it had a planned roadmap for electrification that included hybrid, PHEV, and full BEVs.

The report also noted that Ni Hsin EV Tech Sdn Bhd officially unveiled its two TAILG electric motorcycle models in the personal Tailg Ebixon Bold and commercial Tailg Ebixon Torq categories on November 22, 2022, both of which are locally assembled at its
facilities in Seri Kembangan, Selangor of Malaysia.

The BYD Atto 3 and e6 EVs will go on sale in December 2022, with deliveries beginning in Q123.

The two EVs are expected to cost between MYR150,000 ($33,500) and MYR170,000 ($38,000).

Following the opening of order books and more than 100 bookings on the opening weekend, the Great Wall Motors (GWM) Ora Good Cat electric hatchback has officially launched in Malaysia.

The Ora Good Cat is available in Malaysia in two trim levels: 400 Pro and 500 Ultra, with prices starting at MYR139,800 ($31,440) for the 400 Pro and MYR169,800 ($38,200) for the 500 Ultra.

Fitch Solutions sees passenger EV sales in Malaysia to expand rapidly in 2023