Malaysia’s EV adoption rate projected to reach 9.6% by year-end

The adoption rate of electric vehicles (EVs) in Malaysia may reach 9.6% by the end of this year, supported by the introduction of new models and growing consumer interest, according to Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain.

Mohd Shamsor shared that EVs accounted for 8.6% of total vehicle sales in the first half of 2025.

However, he cautioned that if EV-related subsidies are discontinued, the industry could see a spike in last-minute purchases towards the end of the year, followed by a prolonged slowdown.

The Malaysian market still lacks sufficient appeal to achieve a 15% share of new car sales for EVs by 2030.

Accordingly, the government needs to continue maintaining subsidy policies to support manufacturers in implementing business strategies. Currently, EVs and hybrid vehicles (powered by both gasoline and electricity) account for approximately 4% and 4.6% of total new car sales, respectively.

Currently, fully imported EVs enjoy import and excise duty exemptions until December this year, while locally assembled EVs benefit from additional tax incentives until 2027. EV owners are also exempt from road tax until the end of 2025, with further incentives offered for home charging infrastructure and industry investments.

However, many of these incentives are approaching their expiry, and the MAA is urging the government to extend them to maintain industry momentum, Mohd Shamsor said.