KUALA LUMPUR: As the government is ramping up green initiatives in the automotive industry, the Malaysian Automotive Association (MAA) is proposing incentives under the Budget 2024 to be given to all types of electrified vehicle (xEV) rather than just electric vehicle (EV), in order to popularise xEV in Malaysia.
President Mohd Shamsor Mohd Zain said the term xEV includes hybrid electric vehicle (HEV), plug-in hybrid electric vehicle, battery electric vehicle and fuel cell electric vehicle.
“A step-by-step approach starting from HEV is the most ideal way to phase out the existing conventional internal combustion engine vehicles.
“HEV is the first step towards mass usage of electrified vehicles,” he told Bernama.
Malaysia is targeting to have 15% of the total industry volume (TIV) for xEV by 2030 and 38% of TIV by 2040. To support EV penetration, the government announced that EVs in the country would not be subject to road tax until Dec 31, 2025.
Mohd Shamsor said MAA hoped that the existing incentives of a rebate of RM2,500 and road tax waiver to be extended further to the purchase of all xEVs for both passenger and commercial vehicles.
As for the new incentives, the association proposed that a personal income tax relief should be given for the purchase of xEV and installation of solar panels at home, he said.