Malaysia is witnessing a substantial annual surge in electric vehicle (EV) sales, and the government is optimistic about maintaining this positive momentum through the end of 2023, according to Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Investment, Trade, and Industry.
Zafrul announced that Malaysia has surpassed the milestone of over 100,000 registered electric vehicles, with more than 12,000 battery electric vehicles (BEVs) registered since 2011. Notably, the current year alone has seen the registration of over 9,000 BEVs.
Speaking at the early launch of Malaysia Autoshow 2024 (MAS 2024), Zafrul underscored the robust growth in electric vehicle sales, citing a noteworthy increase of 11.6 percent in Malaysia’s total vehicle sales during the first ten months of 2023, reaching nearly 647,000 units.
Zafrul expressed confidence in electric vehicles acting as a catalyst for Malaysia’s manufacturing industry, particularly in the export sector. He emphasized that products in the electrical and electronic (E&E) category, a critical supply chain for the EV sector, contribute 40 percent to Malaysia’s manufacturing sector, constituting 80 percent of exports.
Highlighting the evolving demands of new-generation vehicles, Zafrul explained the need for more components, such as semiconductor composites and chips. In a hybrid car, there are approximately 1,500 chips, whereas in an EV, it can reach a minimum of 3,000 chips, with these crucial components originating from the E&E sector.
Malaysia continues to attract investments in the EV sector, with the Malaysian Investment Development Authority (MIDA) approving 59 EV projects worth RM26.2 billion from 2018 to June 2023. These projects encompass vehicle assembly, manufacturing parts, and charging components.
To expedite the National Automotive Transition Plan (NETR), launched in August this year, Zafrul revealed that the Ministry of Investment, Trade, and Industry (MITI) has set national targets. By 2030, it is anticipated that 20 percent of Malaysia’s annual new car sales will comprise electric vehicles, increasing to 50 percent by 2040 and 80 percent by 2050.
Zafrul highlighted MITI’s commitment to driving Malaysia forward in the electric vehicle revolution, evident through the National Automotive Policy 2020 (NAP2020). NAP2020 provides a clear roadmap for the local automotive industry’s future, focusing on the development of next-generation vehicles, including energy-efficient and environmentally friendly EVs.
As an integral ecosystem, the automotive industry contributes approximately four percent to Malaysia’s gross domestic product (GDP). The government aims to achieve a GDP contribution of RM104.2 billion and a total production of 1.47 million vehicles by 2030. In the previous year, Malaysia’s automotive industry witnessed an output of over 700,000 vehicles, driven by robust demand following the pandemic, reported Bernama.
