Kuala lumpur: Annual electric vehicle (EV) usage has increased significantly to 44,813 units in 2025 compared with 3,127 in 2022, according to the Investment, Trade and Industry Ministry (MITI).

According to BERNAMA News Agency, in a written reply to the Dewan Rakyat published on the Parliament website today, MITI stated that the rise was driven by government initiatives that introduced exemptions on import duty and excise duty for imported completely built-up (CBU) EVs from 2022 to 2025 to stimulate domestic market adoption.

In line with the National Automotive Policy 2020, which targets Malaysia to become a production and export hub for Next Generation Vehicles (NxGVs), the government continues to encourage the local development of critical EV components. This includes batteries, electric drive motors, and advanced driver assistance systems through tax incentive provisions to original equipment manufacturers (OEMs) that utilise them.

MITI was responding to a question from P. Prabakaran (PH-Batu) on measures taken by the government to ensure Malaysia does not lag behind global EV trends, including the development of local electric vehicles, batteries, and smart charging stations by 2030. The next phase is to encourage more OEMs to implement local EV assembly.

Following the expiry of import duty and excise duty exemptions for CBU EVs on Dec 31, 2025, MITI noted that OEMs have begun shifting towards local assembly activities as part of their commitments and operational strategies in Malaysia. MITI also reported that 5,624 public EV charging units were installed nationwide as of Dec 31, 2025, reaching 56 per cent of the overall target.