Malaysia’s electric vehicle sales surge

Malaysia’s automotive industry is gaining momentum, with electric vehicle (EV) sales soaring over the past two years and continuing to rise in 2025, driven by both domestic and international manufacturers.

According to The Star on Sunday, Malaysia recorded 850 EVs sold in 2021. This figure jumped to 2,631 units in 2022, 10,159 units in 2023, and 14,800 units in 2024.

The EV market in Malaysia in 2024 was dominated by two global auto manufacturing giants, including BYD from China, which captured nearly 40% of the market share, and Tesla from the U.S. with 24%.

However, in 2025, the landscape is shifting, with Malaysia’s own Proton emerging as the market leader in EV sales. The company’s latest electric model, the e.Mas 7, saw the sales of 421 units in January and 580 units in February, thanks in part to its more affordable price.

Government policies have played a crucial role in boosting EV adoption. Malaysia has extended tax exemptions on EVs until the end of 2025 and committed to deploying 10,000 charging stations nationwide by year-end, with contributions from the national electricity company (TNB) and private firms.

Besides, local carmakers such as Perodua are planning to introduce more affordable EVs, including an innovative battery leasing model to reduce costs for consumers once the initial battery warranty expires.

The outlook for EV sales in Malaysia this year will also be influenced by fuel prices. Starting in July, the government plans to phase out subsidies for RON95 gasoline for the country’s highest-income group (T20), a segment expected to be the primary adopters of EVs.

This policy follows a similar trend observed in Thailand, where rising fuel prices have driven strong EV sales. Thailand currently leads the region in EV adoption, with Gasohol 95 gasoline priced at approximately $1.1 per liter.

Competition is also intensifying as automakers adjust pricing strategies to strengthen their market positions. For instance, BYD recently reduced the price of its Atto 3 Ultra model to match Proton’s e.Mas 7, intensifying the battle for market share in Malaysia.