Malaysians Shift Strongly Towards EVs Amid Rising Petrol Prices And Subsidy Cuts

Malaysia’s EV adoption rate still lacks behind its SEA neighbours but a shift from petrol to electric transportation has been noticeable in recent years.

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With crude oil prices rising and the uncertain future of petrol prices, Malaysians are now leaning more towards electric vehicles (EV) to offset the cost of daily transportation.

Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said the association has noticed a significant consideration on EVs.

“The recent global fuel shortage has brought up many discussions on the finite resource amongst Malaysians.

“We have observed a strong shift towards xEVs — hybrids, PHEVs, BEVs, and Fuel Cell Vehicles.

“The adjustment in fuel pricing has indeed influenced customer behaviour, with more Malaysians now considering electrified options. This is a positive trend that aligns with our national sustainability goals,” Mohd Shamsor said during his welcome speech at the Kuala Lumpur International Mobility Show 2026 media update session in MITEC today (20 May).

New guidelines on imports of CBU EVs

Starting 1 July 2026, the Malaysian government requires all Completely Built-Up (CBU) EVs to have a minimum Cost, Insurance, and Freight (CIF) value of RM200,000 and a minimum power output of 180kW or 245 horsepower. This policy effectively ends duty-free status for budget and entry-level imported EVs in the country.

However, The Edge reported that existing CBU EV stock in showrooms, at ports, or in transit may still be sold under previous tax exemptions until fully depleted.

Some examples of CBU EVs available on the Malaysian market right now are the Tesla Model 3 and Model Y, the BYD Seal and the Leapmotor C10.

Malaysia’s EV adoption rate is still low compared to SEA neighbours

Addressing the new guidelines, Mohd Shamsor said while MAA broadly supports the underlying principles taken by the government to reduce trade imbalances in the automotive sector, it still needs to be properly crafted and carried out in phases to enable the industry to react and adapt.

“Limiting the choices of EVs in the market could derail the government’s intentions towards net-zero emission by 2050, and achieve 20% of EV sales in Malaysia by the year 2030,” he said.

The MAA president highlighted Malaysia’s slow EV adoption rate, which is lacking behind our Southeast Asian neighbours Vietnam (26%), Thailand (20%), and Indonesia (13%). EVs in Malaysia captured approximately 5.5% to 8% of new car sales in recent years.

“It is the aspiration of the MAA and the industry to see that these goals are met for the betterment of our future generation, and this recent move will eventually lead towards a healthy market development that is balanced and sustainable for the EV ecosystem — one where it encourages greater localisation through local assembly, attract higher-value investments, open up new job opportunities and enhance Malaysia’s position within the regional EV ecosystem,” Mohd Shamsor said.

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Shahril Bahrom

Shahril Bahrom is a Malaysian digital journalist known for his work with The Rakyat Post and World Of Buzz, covering social issues, technology, pop culture, and viral online trends. His writing combines accessible storytelling with strong awareness of Malaysian internet culture, often focusing on topics that resonate across social media and public discourse. Known for a conversational yet informative style, he specialises in digital-first journalism, human-interest stories, and trend-driven reporting that bridges mainstream news with contemporary online conversations.