MAA president Shamsor Zain said xEVs include hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs).
“A step-by-step approach starting from HEVs is the most ideal way to phase out the existing conventional internal combustion engine vehicles.
“HEV is the first step towards the mass use of electrified vehicles,” he said, according to Bernama.
Shamsor expressed hope that the existing RM2,500 rebate and road tax waiver for EVs would be extended to all xEVs, even for commercial use.
He proposed the government give personal income tax relief under Budget 2024 for the purchase of xEVs and the installation of solar panels at homes.
“The latter will support an energy mix, in which renewable energy will form 17% of our overall energy source by 2040,” he said.
He also said the government’s implementation of a targeted fuel subsidy system would be key to accelerating the xEV market in Malaysia.
Putrajaya aims to have xEVs make up 15% of the total industry volume by 2030, and 38% by 2040. To support this, the government has exempted EVs from being subject to road tax until 2026.
Prime Minister Anwar Ibrahim, who is also finance minister, will table Budget 2024 on Oct 13.