Great news for Electric vehicle owners in Malaysia! The Malaysian government has announced ZERO road tax charges for electric vehicles in the country till 2025.
As announced by the Ministry of Transport, electric motor vehicles or electric vehicles (EV) will enjoy this exemption from
1 January 2022 to 31 December 2025. This motor vehicle licence (commonly known as Roadtax in Malaysia) exemption is
only given to full EV vehicles, whether powered by battery or by fuel cells. This
exemption is not applicable to hybrid vehicles which are equipped with either
petrol or diesel-powered internal combustion engines. The application for the
exemption will begin on 15 February 2022.
This exemption is among a host of incentives for the EV industry announced by the Malaysian Finance Minister during the tabling of the 2022 Malaysian Budget. The other incentives are:
- 100% duty exemption for the purchase of CBU electric cars up to 31st December 2023
- 100% duty exemption for the purchase of CKD electric cars up to 31st December 2025
- Income tax relief of up to RM 2,500 on the cost of purchasing, installing, renting, or hiring purchase facilities to support the EV industry
Though initially off to a slow start when compared to its other neighbours in ASEAN, Malaysia seems to have ramped up their efforts to give a much-needed boost to the Electric Vehicle industry in Malaysia. These latest incentives will certainly encourage Malaysians to take the plunge and purchase their first electric vehicle. With improving support infrastructure, expect to see an increased market share in the sale of electric vehicles in the country.
Major car brands (mainly luxury brands) have started to take advantage of these various incentives by bringing in a wide array of electric models, at very reasonable prices due to the tax exemptions.
Leading the way is the BMW group, having already introduced the BMW iX in August 2021 and BMW iX3 in October 2021. More recently, they have added the BMW i4 to their lineup. These models are all being offered at very attractive prices, after factoring in the latest tax free benefits. The MINI Cooper SE facelift is also now available for sale at an electrifying price of RM178,241 (approximately 43,500 USD). Porsche’s Taycan has also benefited by the tax incentives, with the entry level Taycan now on sale in Malaysia from as low as RM508,000 (124,000 USD) for the base model, a price never seen before for a brand new Porsche in the country.
At the lower end of the spectrum, the Hyundai KONA is certainly value for money, starting from only RM150,000 (36,500 USD). Not forgetting one of the pioneers in the industry, Nissan’s Leaf, which is already into its second generation and available for RM168,800 (41,000 USD).
Currently the industry is dominated by the luxury car brands, but expect to see many more electric car launches happening more frequently this year, especially by the mid-range brands. These vehicles will surely drive EV adoption up in Malaysia.
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