Fitch Solutions: EV sales in Malaysia poised to expand rapidly in 2023

SALES of electric vehicles (EV) in Malaysia is expected to expand rapidly in 2023 – albeit from a low base – due to the introduction of incentives to boost adoption.

Fitch Solutions Country Risk & Industry Research has forecast passenger EV sales to increase by 45.6% in 2023 to reach an annual sales volume of around 4,449 units.

“We expect plug-in hybrid electric vehicles (PHEVs) to lose market share in 2023 as the introduction of more battery electric vehicles (BEVs) offer consumers additional models to choose from,” the research house which is independent of international rating agency Fitch Ratings pointed out in a commentary.

“We forecast that total EV sales as a percentage of total sales to breach the 1% mark by 2024 as an expected strong performance in both PHEVs and BEVs accelerates EV adoption.”

Fitch Solutions based its optimism on the following latest developments and key drivers:

  • Stimulating EV adoption through incentives: A road tax exemption for EVs has now been implemented along with a subsidy of RM2,500 (USD600) for EV charging infrastructure purchases by consumers. Additionally. a 100% reduction in import duties of completely built-up (CBU) EVs till December 31 2023 has been introduced.
  • Suspension of duties until December 31, 2025 for completely knocked down (CKD) EVs along with sales tax and excise duty exemptions which will further improve the affordability for consumers due to the inherently high taxes on importing vehicles in the country.
  • Malaysia is well-positioned to increase the assembly of battery packs as existing players in the country take advantage of potentially higher demand for batteries due to automakers ramping up their EV offerings.
  • Ni Hsin EV Tech Sdn Bhd has officially unveiled its two TAILG electric motorcycle models in the personal Tailg Ebixon Bold and commercial Tailg Ebixon Torq categories on Novr 22, both of which are locally assembled at its facilities in Seri Kembangan, Selangor.
  • The BYD Atto 3 and e6 EVs will go on sale in December 2022 with deliveries beginning in 1Q 2023. The two EVs are expected to cost between RM150,00 and RM170,000.
  • Following the opening of order books and more than 100 bookings on the opening weekend, the Great Wall Motors’ (GWM) Ora Good Cat electric hatchback has officially launched in Malaysia. The Ora Good Cat is available in Malaysia in two trim levels: 400 Pro and 500 Ultra with prices starting at RM139,800 for the 400 Pro and RM169,800 for the 500 Ultra.
  • Volvo Car Malaysia (VCM) wants EVs to account for 75% of total sales by 2025. Its XC40 Recharge Pure Electric is the first EV to join VCM’s local line-up with the company promising to launch a new EV in Malaysia annually for the next five years. VCM will also continue to prioritise local production with the XC40 Recharge Pure Electric is billed as Malaysia’s first locally produced EV model. – Dec 1, 2022


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