Govt backs move for more locally-assembled EV models – MITI
18 Jul 2024
The government has no objections to allowing foreign car manufacturers to bring in more electric vehicle (EV) models for local assembly, said Deputy Minister of Investment, Trade, and Industry (MITI), Liew Chin Tong.
He said EVs assembled in Malaysia are not subject to the minimum price limit of RM100,000 imposed on imported EVs and this move is supported by the existing direction and initiatives of the government, which is in line with the National Automotive Policy 2020 (NAP 2020).
Liew noted that the government is also focusing on several strategic approaches to strengthen the overall electrified vehicle (xEV) ecosystem.
To support the development of the EV industry and its ecosystem, he said the government has introduced various initiatives, including non-financial initiatives.
Liew said that given the high cost of developing EV technology, it is a challenge for local car manufacturers to produce EVs at competitive prices compared to internal combustion engine (ICE) vehicles, which have long-established technology.
“Therefore, to help local car manufacturers produce EVs at more competitive prices, the government has offered more attractive tax incentives compared to ICE vehicles.
“Specifically, locally assembled Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) can enjoy full exemptions from import duties, excise duties, and sales tax until Dec 31, 2027,” he said during a special chambers session in Parliament today.
Liew was responding to a question from Khairil Nizam Khirudin (PN-Jerantut) regarding efforts to enhance the capability of local car manufacturers to produce affordable zero-emission vehicles for all segments of the population.
To encourage technology providers to support EVs, Liew said the government also offers income tax exemptions through Pioneer Status or Investment Tax Allowance of up to 100 per cent for up to 10 years to promote investment in the production of EVs and related critical components such as batteries, motors, and others.
He added that the incentives offered by the government are not limited to manufacturing or assembly activities and completely built-up (CBU) imported EV models.
The government also offers the Green Investment Tax Allowance (GITA) to technology providers supporting the EV industry, such as companies providing EV charging services, Liew said.
Source: Bernama
