Fuel savings, tax exemption and green benefits drive Malaysian EV purchases

This is the third article in a four-part series exploring the potential of electric vehicles (EVs) for cleaner electricity generation and greater sustainability despite the environmental challenges associated with battery production and disposal. The series will also cover related topics such as tax exemptions and green benefits.

SHAH ALAM - Malaysian electric vehicle (EV) users are increasingly drawn to substantial savings on petrol and road tax exemptions, with environmental benefits also adding to the appeal.

In Malaysia, a surge in EV purchases reflected a shift driven by a blend of economic and environmental incentives.

Savvy drivers are drawn to the significant savings on petrol and the attractive road tax exemption, which together make EVs an increasingly appealing option.

Beyond the financial perks, the growing awareness of environmental benefits steered more Malaysians toward greener alternatives.

Amelia Wong, a 35-year-old marketing manager, highlighted substantial savings on petrol and road tax exemptions as her main reasons for purchasing an electric vehicle in Malaysia.

She said that these financial benefits made the decision to switch from a traditional petrol car to an EV appealing.

“Using an EV car has several advantages over a petrol car, including being more environmentally friendly and having easy parking in designated EV bays.

“However, drawbacks include the limited number of charging stations and the need for careful planning when travelling outstation to find hotels with charging bays,” she said.

From her experience, Amelia said owning and operating an EV was generally cheaper than a traditional petrol car.

“EVs need lesser maintenance and labour, offering significant savings. Additionally, the car battery warranty can last up to 10 years, depending on the brand.

“In contrast, maintaining a traditional petrol car, especially European brands, is more expensive, making EVs more cost-effective in the long run,” she added.

Amelia also emphasised that Malaysia's EV infrastructure could benefit from more charging bays and designated parking spots.

“Government subsidies for part of the electricity bill for EV owners would incentivise more people to switch to electric vehicles.

“These improvements would support current EV users and encourage wider adoption,” she noted.

Echoing Amelia’s reasons, Rasyidi Ramli, a 40-year-old business owner, also highlighted significant savings on petrol and road tax exemptions as his primary motivations for purchasing an EV in Malaysia.

He said that escalating fuel prices and the government’s tax incentives made EVs financially attractive, though the environmental benefits were also appealing.

“The key advantages I have experienced with my EV include lower running costs, a quieter drive and cheaper charging compared to petrol. Maintenance is also reduced due to fewer parts and no oil changes.

“However, challenges would include Malaysia’s developing charging infrastructure, which can be inconvenient, especially for long trips and the higher initial cost.

“My overall driving experience with an EV has been positive. EV offers a quiet, smooth and responsive driving experience, while the well-designed interior and advanced technology enhance comfort.

“The absence of engine noise and vibrations makes for a relaxing ride,” he added.

Rasyidi also said to improve Malaysia’s EV infrastructure, more charging stations were needed nationwide, especially in remote areas.

“The network should include reliable, fast chargers to minimise charging times. Therefore, I highly recommend the government to improve EV’s infrastructure, such as the charging stations.

“The private sector should also invest in expanding and modernising the infrastructure, including user-friendly, digital payment systems.

“Additionally, educational campaigns can raise awareness and promote EV benefits,” he said.