PETALING JAYA: Companies bringing in electric vehicles have seen a rise in demand, some by up to 100%, since tax exemptions and incentives for the sector were announced under Budget 2022.
With that in mind, Malay Vehicle Importers and Traders Association of Malaysia (Pekema) vice-president Raja Petra Marudin said the priority should now be on electric vehicle (EV) infrastructure such as charging stations.
“The demand for Tesla (electric vehicles) has increased by almost 100% since the announcement,” he said.
German car manufacturer BMW said the demand for its EVs had increased by over 50% since the tax exemption announcement.
BMW Group Malaysia corporate communication head Sashi Amba said its buyers came mostly from major areas in Malaysia such as the Klang Valley, Johor and Penang.
He said that the company is also working with several stakeholders in the industry to build charging stations to accommodate the increasing demand.
“The challenge of this budding sector includes the deployment of charging stations,” he said, adding that BMW was working with parties such as Tenaga Nasional Bhd and Siemens.
Sashi said that each charging station would cost between RM500,000 and RM1mil, depending on the location.
“Aside from the energy and technology companies, we are also working with highway companies to provide public charging stations,” he said, adding that the technology should be accessible to all and not limited to BMW users only.
BMW Malaysia currently offers three EV models: the BMW iX, iX3 and i4 that range from below RM200,000 to RM400,000.
“Industry players were all excited about the announcement by the government as it would open new opportunities for the EV sector in the country,” said Sashi.
Under Budget 2022, the government announced that imported EVs will get full import and excise duty exemption for two years till the end of 2023.
Locally assembled EVs will get excise duty as well as sales tax exemption for four years until the end of 2025.
Pekema’s Raja Petra, however, asked whether there would be a plan that would be sustained in the long run.
“A two- to four-year plan may not be enough for the sector to grow. The industry would suggest at least a 10-year plan for it,” he added.
He also suggested the government and local industry players learn from other countries that had successfully implemented EVs, citing China, Thailand and Singapore as examples.
“The government should play a bigger role in providing the charging station infrastructure. With adequate infrastructure, we can build more confidence and tap into the largest market which is people from the medium-income bracket while more manufacturers are able to provide affordable EVs,” he added.
Raja Petra said that at the moment, the sector is still focusing on EVs in the higher price range.
Malaysia’s aim to reduce its carbon footprint took a step forward on Jan 1 when tax incentives for EV ownership under Budget 2022 kicked in.
It is expected to pave the way for greater adoption of such zero-emission vehicles.