Malaysian electric vehicle registrations are soaring

Like many countries, Malaysia wants to promote electric-vehicle adoption as part of its climate goals. During 2022, buyers of EVs received considerable tax relief: first, exemption from road tax, and then complete exemptions from import duties, excise duties, and sales tax.

Unsurprisingly, EV registrations have soared, as our first chart shows. Another leg up came in February 2023, when Tesla won approval to enter the market.

We've charted the adoption of EVs over the past three years, breaking down registration by vehicle type -- overwhelmingly Malaysia's "motorcar" classification -- which tends to include Tesla vehicles -- and "Jeep," i.e. sports utility vehicles.

However, EVs represent just 3% of total car registrations; gasoline-powered vehicles remain dominant.

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