Malaysia’s electric vehicle (EV) adoption has accelerated sharply, with annual usage climbing to 44,813 units in 2025 compared with just 3,127 units recorded in 2022.
The Investment, Trade and Industry Ministry (MITI) credited the surge to a series of government incentives aimed at driving early adoption. Among the key measures were exemptions on import and excise duties for fully imported, completely built-up (CBU) EVs from 2022 until the end of 2025.
The figures were disclosed in a written parliamentary reply to Batu MP P. Prabakaran, who sought clarification on how Malaysia intends to remain competitive amid rapid global developments in the EV sector.
With duty exemptions for imported CBU EVs having ended on Dec 31, 2025, MITI said the focus will now shift towards strengthening domestic capabilities. The ministry is encouraging more original equipment manufacturers (OEMs) to establish and expand local assembly operations.
According to MITI, several OEMs have already begun transitioning towards local assembly as part of their long-term commitments and business strategies in Malaysia. The move is expected to support technology transfer, job creation and broader industry development.
The government is also promoting the localisation of critical EV components, in line with the National Automotive Policy 2020. The policy outlines Malaysia’s ambition to position itself as a regional production and export hub for Next Generation Vehicles.
Incentives remain available for manufacturers that incorporate locally produced batteries, electric motors and advanced automotive systems into their vehicles, reinforcing efforts to deepen the domestic supply chain.
On infrastructure readiness, MITI reported that 5,624 public EV charging stations had been installed nationwide as of Dec 31, 2025. This represents 56 per cent of the national target, underscoring ongoing efforts to expand charging accessibility as EV ownership continues to grow.
Industry observers note that while adoption rates are rising rapidly, sustained policy support and infrastructure expansion will be crucial to maintaining momentum in Malaysia’s evolving EV landscape.
