The 2025 fiscal budget is set to be announced soon, analysts predict that exemptions on complete import and consumption taxes for electric vehicles may not be extended; therefore, the focus of the automotive industry is on how the budget will further drive incentives for local assembly of electric vehicles.
Industrial Bank today released a report, analyzing the prospects of the Malaysian automotive market, pointing out that the main theme of the current car market still revolves around accelerating the popularization of electric vehicles. The forthcoming budget is expected to focus on developing the electric vehicle ecosystem, promoting incentives, and supporting the construction of public charging stations.
"We believe the government may introduce new incentive policies to attract more original equipment manufacturers (OEMs) to manufacture and assemble electric vehicles locally."
With more and more consumers choosing electric cars, the future of the Malaysian electric car market looks promising, but analysts point out that the real market boom may have to wait until 2025, when the zero import duty for electric cars priced at 0.1 million ringgit expires, and more locally manufactured budget electric cars will enter the market.
With the launch of the first electric vehicle e.MAS 7 by Baoteng, and the plan to launch the second domestically produced electric vehicle at the end of 2025, we believe the government will prioritize providing incentives to encourage local assembly of electric vehicles.
He added that the popularity of electric vehicles is rapidly increasing, with 5,100 electric vehicles registered in the third quarter of 2024, a staggering increase of 74% year-on-year; bringing the total to 58,000 vehicles in the first 9 months, a growth of 114%. Among them,...