Annual EV usage in Malaysia skyrockets to 44,813 units, driven by tax incentives and a push for local assembly and component manufacturing.
KUALA LUMPUR: Annual electric vehicle usage in Malaysia has surged to 44,813 units in 2025. This marks a dramatic increase from just 3,127 units recorded in 2022.
The Investment, Trade and Industry Ministry attributed the growth to government initiatives. These included exemptions on import and excise duties for imported completely built-up EVs from 2022 to 2025.
MITI provided the data in a written parliamentary reply to P. Prabakaran. The Batu MP had inquired about measures to ensure Malaysia keeps pace with global EV trends.
The ministry stated the next phase is to encourage more original equipment manufacturers to implement local EV assembly. This follows the expiry of the duty exemptions for imported CBU EVs on December 31, 2025.
MITI said OEMs have already begun shifting towards local assembly activities. This shift is part of their commitments and operational strategies within the country.
The government continues to encourage local development of critical EV components. This effort is in line with the National Automotive Policy 2020.
The policy targets Malaysia becoming a production and export hub for Next Generation Vehicles. Incentives are provided to OEMs that utilise locally made batteries, motors and advanced systems.
On infrastructure, MITI reported 5,624 public EV charging units were installed nationwide as of December 31, 2025. This figure represents 56 per cent of the overall target.
