Heading into the future, the government will ensure that electric vehicle (EV) ownership is available to all income groups. According to investment, trade and industry (MITI) minister Tengku Datuk Seri Zafrul Abdul Aziz, this will be done through targeted subsidies and financial assistance.
“As we look to the future and the upcoming Budget 2024, our focus remains on inclusivity, aligning with the Madani Economy Framework. We aim to make EV ownership accessible to all, especially the B40 and M40 demographics, through targeted subsidies and financial assistance,” he said during the launch of Tesla’s new HQ and first Experience Centre in Cyberjaya yesterday.
While he didn’t expand on this or indicate what measures will be taken to accomplish this, the reality is that making electrification accessible to these income groups won’t happen so soon. It will eventually need local assembly and the lifting of restrictions imposed currently, so if anyone is expecting affordable EVs, 2026 is when things will likely start moving in that direction.
The country presently has import and excise duty exemptions for fully-imported (CBU) battery EVs in place until December 31, 2025, but the floor price for any imported BEV cannot be under RM100,000. The condition, specifically listed under MITI’s guidelines on franchise approved permit (AP) requirements for 2023, was put in place to allow local players to get themselves ready for electrification.
Separately, he said that the implementation of policies and initiatives so far has had a positive impact on the local automotive industry, reflecting the government’s commitment to developing a holistic EV ecosystem in the country.
“The number of registered EVs increased to over 3,400 units in 2022 and exceeded 7,500 units by September 2023, compared to an average of 300 units in previous years. Furthermore, investments in our EV industry have reached an impressive RM26.2 billion from 2018 up to March this year,” he stated in his speech.
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