Malaysia’s xEV Adoption Up 30% in 2024

Electrified vehicle (xEV) sales in Malaysia surged by 30.4% last year, reaching 46,239 units. This accounted for 5% of total passenger vehicle registrations, according to MITI Minister Tengku Datuk Seri Zafrul Aziz.

Battery electric vehicle (BEV) sales saw the biggest jump, skyrocketing from just 256 units to 38,369 units in 2024.

Based on current trends, the government expects at least 400,000 xEVs — both passenger and commercial — on Malaysian roads by 2030. Tengku Zafrul shared this in a written parliamentary response to Chong Chieng Jen (PH-Stampin), who had inquired about plans to boost EV adoption.

Malaysia has set ambitious targets for xEV sales, aiming for 20% of total annual vehicle sales by 2030, 50% by 2040, and 80% by 2050.

As of December 31, 2024, the country had registered a total of 119,000 xEVs, Zafrul added in another response to Jimmy Puah Wee Tse (PH-Tebrau).

To support this growth, Malaysia currently has 3,611 public EV chargers, including 1,095 DC fast chargers and 2,516 AC chargers. The government aims to install 10,000 chargers by 2025—8,500 AC and 1,500 DC.

However, at Carz.com.my, we’re skeptical. To hit this target, Malaysia would need to roll out 638 chargers every month. Given the financial and manpower demands on local charge point operators (CPOs), this seems nearly impossible.

To encourage BEV adoption, the government has introduced tax incentives. Fully imported (CBU) BEVs are exempt from import and excise duties until December 31, 2025. Locally assembled (CKD) BEVs enjoy full exemptions on import, excise, and sales taxes until Dec 31, 2027.

We believe these incentives must continue. Cutting them off too soon would likely cause BEV sales to drop. The CKD tax exemption, in particular, should extend well beyond 2027 to attract serious investment from EV manufacturers. A mere two-year window won’t convince automakers especially those with only BEV offerings to set up costing local production.