BEVs Make Up Less Than 1% Of Registered Vehicles In M'sia. But The Number Is Set To Rise

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Known as the MARiiCas programme, the government is offering RM2,400 in rebates to encourage the adoption of electric-powered motorcycles. Between January and September 2024, 4,984 applications were approved, resulting in a total rebate payout of RM11.9 million.

This is just one of the many initiatives put forth by the government in Budget 2024 to promote battery electric vehicles (BEVs) in Malaysia.

In fact, the government has made the adoption of BEVs among its priorities in the National Energy Transition Roadmap (NETR).  The NETR sets ambitious targets for Malaysia, aiming to achieve net-zero emissions by 2050. The plan is comprehensive and outlines a gradual increase in renewable energy shares, targeting 31% by 2025, 40% by 2035, and an impressive 70% by 2050.

Hence, it isn't surprising that Budget 2024 featured growing incentives for the BEV industry — be it for BEV owners, manufacturers, or companies investing in related tech.

Nevertheless, this statistic is set to rise, and is already trending upwards when comparing the number of registered BEVs between 2023 and 2024.

In 2023, the total number of passenger and commercial BEVs stood at 13,513 units, which made up 1.69% of the total industry volume. Meanwhile, from January to June 2024, the BEV count already hit 10,706 units (2.74% of the total industry volume).

Within the next five years, the government targets to hit a total of 84,000 BEVs. The goal is for BEVs to account for 15% of all vehicles sold by 2030, and 80% by 2050.

In case you didn't know, BEV prices are already at a lower price point thanks to imports duty and excise exemptions from the government.

BEV owners have also been exempt from paying road tax since 2022, with this benefit lasting until 31 December 2025. After that, a lower tax rate based on the vehicle's power output will apply in 2026.

To support the growth of EV charging infrastructure, individuals can claim up to RM2,500 in annual tax relief for the installation, rental, or purchase of EV charging equipment, a benefit available until 2027.

Additionally, companies investing in energy-efficient vehicle (EEV) assembly or providing green technology services related to EV charging, maintenance, and infrastructure can receive various incentives.