The adoption of electric vehicles (EVs) in Malaysia has exceeded the development of charging infrastructure, as indicated by Shah Yang Razalli, deputy CEO and chief green mobility officer of Gentari, a clean energy solutions company owned by Petronas.
The company’s charging ports have experienced a 60% increase in utilisation between the first and second quarters of the year. This growth underscores the success of the government’s efforts to encourage EV adoption and the appeal of Gentari’s charging services, according to The Edge Malaysia.
However, the current state of charging infrastructure lags behind the pace of EV adoption, with the number of charging point operators (CPO) increasing but utilisation remaining high.
Usually, with the addition of more CPOs, utilisation decreases as it gets distributed. However, in this case, adding more CPOs also leads to increased utilisation, signifying that the growth of EVs on the road is surpassing the pace of infrastructure deployment, he said.
Gentari aims to deploy 400 charging points in 2023 to contribute to the government’s goal of 10,000 charging points by 2025.
Shah highlights the challenge of approval processes for charging points in interstate areas, which take up to nine months, whereas charging point operator build times are only two to three weeks.
He urges streamlining these approval processes to accelerate charging point deployment and ensure efficiency for the EV industry and consumers.
EV Sales Set To Quadruple in Malaysia
BMI, a Fitch Solutions company, forecasts a fourfold increase in Malaysia’s 2023 EV sales, despite the country’s 1.8% EV penetration rate.
This growth stems from local EV manufacturing by Volvo and Mercedes-Benz, stimulating consumer interest. Mercedes-Benz aims to electrify 30% of Malaysian vehicle sales by 2030 due to robust EV penetration rates.
Tesla and China’s Neta have entered the market, diversifying options. Proton Holdings Bhd introduced an electrification roadmap covering hybrid, plug-in hybrid EVs, and full battery EVs.
Government initiatives also contribute: import duty exemptions for local EV components are extended until December 2027, excise and sales tax exemptions for completely knocked down (CKD) EVs continue, and duty exemptions for completely built-up (CBU) vehicles extend until December 2025.
These measures will likely amplify EV sales by reducing costs and boosting competition against internal combustion engines.
Duty exemptions on EV parts will incentivise local EV production, attracting both current and new automakers to electrify models. EV charging infrastructure manufacturers in Malaysia enjoy income tax exemptions until 2032. Commercial EVs, like Volvo’s heavy trucks, are gaining traction.
Malaysia’s aim of having 100,000 EVs on the roads by 2030, including 50,000 commercial EVs, is reinforced by road tax exemptions for EVs until December 31, 2025.
