Market Snapshot
Key Takeaways
Market Overview & Analysis
Report Summary
The Malaysia electric vehicle market covers battery-electric, plug-in hybrid, and hybrid electric vehicles across passenger cars, two-wheelers, commercial vehicles, and buses. The market is segmented by propulsion type, vehicle category, battery chemistry, price band, and sales channel. Malaysia’s EV transition is state-led, anchored by the Low Carbon Mobility Blueprint 2021–2030, which targets 10,000 public chargers by 2025 and 20% xEV share of new vehicle sales by 2030.
Malaysia’s 2025 total industry volume reached 820,752 units, up 0.5% year-on-year. BEV and PHEV share rose from 1.81% in 2024 to 3.76% in 2025. Proton led the EV charts after launching the e.MAS 7 (a rebadged Geely EX5), which recorded 8,677 registrations for the full year. BYD secured 11,870 cumulative registrations across the Sealion 7, Atto 3, Atto 2, M6 MPV, Seal, and Seal 6. Tesla registered 5,467 units led by Model Y (4,401) and Model 3 (2,880). Additional entrants include Zeekr, XPeng, Denza, GWM, Chery Omoda, iCaur, Leapmotor, Dongfeng, Wuling, and Smart.
Local CKD assembly is accelerating. Proton commissioned a 20,000 vehicle-per-year dedicated EV plant at Tanjung Malim in September 2025, scalable to 45,000 units. Perodua launched the QV-E on December 1, 2025, priced at MYR 80,000 (battery-leased) with a production ramp from 500 units per month to 3,000 by Q3 2026. BMW commissioned Asia-Pacific’s first CKD i5 eDrive40 in January 2026 (priced from MYR 368,800), while Volvo launched the ES90 with local assembly in Shah Alam at MYR 339,888. TQ Wuling commenced CKD production of the Bingo EV at Tan Chong’s Segambut facility in January 2026 at MYR 67,800. GWM began CKD production of the WEY G9 PHEV at EP Manufacturing’s Pegoh plant, Melaka.
Battery cell manufacturing is emerging as a parallel industry layer. Samsung SDI operates its second cylindrical cell plant at Seremban, producing 21700-format cells with mass production from 2024. EVE Energy opened a 680-million-unit cylindrical cell plant in 2025 and committed to a 10–15 GWh phase-two expansion for energy storage. Highstar Power will commission a 2.5 GWh cell plant in Johor in April 2026. Lynas Rare Earths announced a MYR 500 million heavy rare earth separation facility expansion in October 2025, reinforcing Malaysia’s upstream critical-mineral position.
Market Dynamics
Key Drivers
- Import duty and excise tax exemptions accelerate BEV and PHEV adoption. CBU exemptions applied through December 2025. CKD exemptions continue through December 2027 across import duty, excise tax, and sales tax, providing a multi-year runway for local assembly programmes.
- Local CKD assembly expansion is accelerating. Proton’s Tanjung Malim EV plant (20,000 units per year), Perodua’s Smart Mobility Plant (3,000 units per month target), BMW Shah Alam i5 CKD, Volvo ES90 Shah Alam assembly, TQ Wuling Bingo, and GWM WEY G9 at Pegoh collectively expand domestic capacity.
- Chinese OEM entry has intensified. Chinese-origin brands secured approximately 60% of EV registrations in 2025, led by BYD, Zeekr, XPeng, Chery, GWM, Leapmotor, iCaur, Dongfeng, Wuling, Denza, and Smart. The Global EV Leaders Initiative permits 100% foreign ownership for qualifying entities.
- Charging infrastructure is expanding. Licensed public chargers rose to 5,360 by November 2025. DC fast chargers already exceed the revised 1,500-unit target. Streamlined licensing cut approval times from 60 to 30 days under the Energy Commission (ST).
- Public transport electrification creates stable demand. The Finance Ministry allocated MYR 1.9 billion for procurement of 1,660 buses including 1,350 electric buses. Prasarana targets 250 electric buses by 2027 across Klang Valley (175) and Penang (75), expanding to 1,600 by 2031.
Key Restraints
- CBU EV tax exemptions expired on December 31, 2025. The Ministry of Finance projects an additional MYR 300 million in 2026 revenue owing to expiry. Prices of fully imported EVs are expected to rise from January 1, 2026, moderating import-brand volumes.
- Targeted fuel subsidies for RON95 petrol priced at MYR 1.99 per litre reduce the total cost of ownership gap versus internal combustion engine vehicles. Budget 2026 maintained the subsidy, weighing on new EV adoption momentum among price-sensitive buyers.
- Charging network coverage remains below the 10,000-unit Low Carbon Mobility Blueprint target. AC charger rollout has lagged, prompting a revised target of 8,500 units by Q3 2026. Highway and East Malaysia coverage remains sparse.
- Apartment and high-density housing charging access is limited. Many urban buyers lack dedicated parking for home charging installations, constraining urban BEV adoption despite the MYR 2,500 home-charger tax rebate that runs through 2027.
Key Trends
- 800V architecture entry is accelerating. Smart #5 launched in November 2025 as Malaysia’s first 800V EV with 10–80% DC charging in 15 minutes. Volvo ES90 also adopted 800V architecture in January 2026 with 350 kW DC charging.
- Battery-as-a-Service (BaaS) models are gaining traction. Perodua’s QV-E introduced battery leasing separating vehicle and battery ownership, reducing upfront cost. The model is expected to extend to other Malaysian OEMs targeting price-sensitive buyers.
- Plug-in hybrid momentum is building. Proton launched the e.MAS 7 PHEV on February 4, 2026, at MYR 109,800 with electric ranges of 83 km (standard) and 146 km (Premium Plus). GWM commenced CKD production of the WEY G9 PHEV at Pegoh in January 2026.
- Kedah hosts ASEAN’s first international EV test centre. The Bandar Baharu facility, operated by Focus Applied Technologies, supports testing across passenger cars, heavy commercial vehicles, and two- and three-wheelers with a MYR 3 million initial investment and a further MYR 4 million expansion planned through 2027.
Market Segmentation
BEVs accounted for the majority of the plug-in segment in 2025. Top-selling models include Proton e.MAS 7 (8,677 units), BYD Sealion 7 (4,454), Tesla Model Y (4,401), BYD Atto 3 (4,069), and Tesla Model 3 (2,880). Entry-level BEV pricing dropped to MYR 59,800 with the Proton e.MAS 5 launch in October 2025 and MYR 67,800 for the TQ Wuling Bingo in December 2025. BEV adoption is supported by road tax exemptions through end-2025 and a revised road tax structure from January 2026 at approximately 15% of equivalent ICE rates.
PHEV volumes remain a smaller share of the electrified mix, however product launches accelerated in early 2026. Proton e.MAS 7 PHEV launched in February 2026 starting at MYR 109,800, offering 83 to 146 km of electric range and 943 to 996 km combined range. GWM WEY G9 PHEV MPV entered CKD production in January 2026 at MYR 269,800 with 170 km EV range. BYD Shark 6 PHEV pickup is expected to enter the market during 2026.
HEVs registered 38,515 units in 2025, representing 4.7% of total industry volume. Toyota and Honda lead this segment through the Corolla Cross Hybrid, HR-V Hybrid, CR-V Hybrid, and Vellfire Hybrid. Nissan Serena e-POWER launched in March 2026 at MYR 154,800, introducing ProPILOT driver assistance. Toyota launched three BEV models in April 2026 (bZ4X, Hilux BEV, Urban Cruiser EV), signalling a strategic pivot from hybrid-only positioning.
Passenger cars dominate the Malaysia electric vehicle market, accounting for over 95% of BEV and PHEV registrations in 2025. Sedans, SUVs, and MPVs comprise the category. C-segment SUVs lead volume, reflected in BYD Sealion 7, Tesla Model Y, BYD Atto 3, Proton e.MAS 7, and Leapmotor C10 sales. MPV adoption is rising, led by BYD M6 (1,683 units) and Denza D9 (1,200 units).
Two-wheeler electrification remains nascent. Approximately 3,838 electric motorcycles were registered as of 2023, representing 0.02% of Malaysia’s 16.7 million registered motorcycles. Purchase rebates of up to MYR 2,400 for e-bicycles (motor up to 250W, battery up to 400Wh) and MYR 500 to MYR 1,000 for electric motorcycles support gradual adoption. The segment is forecast to advance at 42% CAGR through 2030 from a small base.
Three-wheeler vehicles are not common in Malaysia. Minimal deployment exists in last-mile delivery pilots. The segment remains below 0.1% of total vehicle registrations and is not a material contributor to market revenue through 2030.
Electric commercial vehicles comprise buses, vans, and pickups. Prasarana targets 250 electric buses by 2027 and 1,600 by 2031. HI Mobility secured 262 electric bus orders for delivery between December 2025 and early 2026. Jenhoo CAM EV48 electric van is scheduled for launch in early 2026 at MYR 150,000. Tata Motors Prima E.55S-equivalent and BYD Shark pickup platforms are expected to expand the commercial segment.
Chinese-origin brands collectively secured approximately 60% of Malaysia’s EV market in 2025. BYD led with 11,870 registrations across six models. Zeekr contributed 1,718 units, XPeng 1,334, Denza 1,002, Chery 629, iCaur 565, MG 534, Leapmotor 437, GWM 361, Dongfeng 157, and Neta 156. Chinese brands gain share through competitive pricing, rapid model introduction cycles, and local CKD partnerships.
Proton and Perodua represent Malaysia’s national EV champions. Proton e.MAS 7 led the EV charts in 2025 with 8,677 units, supported by the October 2025 e.MAS 5 launch (5,000+ bookings within 30 days). Proton targets 330,000 annual sales by 2030, with 30% derived from exports and 30% from electrified vehicles. Perodua QV-E launched in December 2025 with 500 units per month capacity scaling to 3,000 by Q3 2026, supported by 52 Malaysian suppliers and 50% localization target by early 2026.
Tesla registered 5,467 units in 2025 (Model Y and Model 3), operating directly under the Global EV Leaders Initiative. BMW Group Malaysia delivered 2,700+ BEV units in 2025 (25% of total BMW/MINI/Motorrad volumes), anchored by the locally assembled i5 eDrive40. Volvo commissioned CKD assembly of the ES90 in Shah Alam in January 2026 at MYR 339,888. Porsche Taycan recorded 421 units in 2025.
Japanese brands focused on HEVs through 2025, however Toyota entered the BEV segment in April 2026 with bZ4X, Hilux BEV, and Urban Cruiser EV launches. Nissan launched the Serena e-POWER (hybrid MPV) in March 2026. Korean brands including Hyundai and Kia maintain limited EV presence. Japanese and Korean combined BEV share remained below 5% in 2025.
The entry-level band opened in October 2025 with the Proton e.MAS 5 at MYR 59,800. TQ Wuling Bingo EV followed at MYR 67,800 in December 2025. Perodua QV-E at MYR 80,000 (excluding battery) and Dongfeng Vigo EV at MYR 108,888 (approximately MYR 100,000 with rebate) further expanded this segment. The entry-level band is forecast to drive volume growth through 2030.
The mid-market segment anchors mainstream BEV adoption. Proton e.MAS 7 BEV and PHEV variants, BYD Atto 2 and Atto 3, Leapmotor B10 and C10, iCaur 03 and V23, and Chery Omoda E5 compete in this band. The segment captured the largest share of 2025 registrations by unit volume and is expected to sustain share through 2030.
The premium band serves higher-specification BEVs including Tesla Model Y, BMW i5 eDrive40 CKD (MYR 368,800), Volvo ES90 (MYR 339,888), smart #5 (MYR 199,800–249,800), and GWM WEY G9 PHEV (MYR 269,800). Toyota bZ4X (MYR 220,000) and Hilux BEV (MYR 226,300) expanded the segment in April 2026.
The luxury band includes Porsche Taycan (421 units in 2025), Mercedes-EQ models, BMW iX, and Denza D9 premium variants. Toyota Vellfire Hybrid at MYR 549,900 competes in the luxury hybrid MPV sub-segment. Luxury volume is stable, with limited upside beyond the current Chinese premium imports.
By Geography
Klang Valley (Kuala Lumpur and Selangor)
Klang Valley is the primary EV demand cluster, accounting for approximately 52% of Malaysia’s EV registrations in 2025. The region hosts the densest charging network, anchored by TNB Electron, ChargEV (YTL), JomCharge, Gentari, and Shell Recharge stations. Prasarana’s 175 electric buses target Klang Valley deployment by 2027. The region also hosts Proton Tanjung Malim EV plant operations and Volvo’s Shah Alam CKD facility.
Penang
Penang contributes approximately 14% of national EV registrations in 2025. The region is a secondary premium-EV demand cluster, supported by the urban population in George Town and industrial corridors. Prasarana plans 75 electric buses for Penang by 2027. Charging network density in Penang ranks second nationally.
Johor
Johor holds approximately 12% of national EV registrations in 2025. The state is positioned as a battery manufacturing cluster, anchored by Highstar Power’s 2.5 GWh cell plant scheduled for April 2026 commissioning. Johor’s proximity to Singapore and the Kuala Lumpur–Singapore economic corridor supports premium EV demand.
Perak and Northern States
Perak contributes approximately 8% of national EV registrations in 2025, anchored by Proton’s Tanjung Malim production base and the Automotive High Tech Valley (AHTV) development. Kedah hosts ASEAN’s first international EV test centre at Bandar Baharu, commissioned in December 2025, and Leapmotor’s planned CKD operations at the Stellantis Gurun plant.
Negeri Sembilan and Melaka
Negeri Sembilan hosts Samsung SDI’s cylindrical battery plant at Seremban (21700-format cells) and EVE Energy’s cylindrical cell facility. Melaka hosts EP Manufacturing’s Pegoh plant producing the GWM WEY G9 PHEV. Combined EV registrations in the two states represent approximately 7% of the national total in 2025.
East Malaysia (Sabah and Sarawak)
Sabah and Sarawak collectively hold approximately 7% of national EV registrations in 2025. Charging infrastructure coverage remains sparse, constraining adoption beyond urban centres such as Kota Kinabalu and Kuching. Public-sector EV procurement and shared-mobility e-scooter deployments represent the primary growth vectors through 2030.
How Competition Is Evolving
The competitive environment in the Malaysia electric vehicle market is moderately fragmented with an accelerating concentration trend. The top five OEM groups accounted for approximately 62% of BEV and PHEV registrations in 2025. Market concentration is driven by the expiry of CBU exemptions (December 2025) and the three-year runway of CKD exemptions (through December 2027), favouring OEMs with committed local assembly pipelines.
BYD Sime Motors secured brand leadership with 11,870 registrations across the Sealion 7, Atto 3, Atto 2, M6 MPV, Seal, and Seal 6. Proton recorded 8,677 e.MAS 7 and 134 e.MAS 5 registrations for 2025, supported by the Tanjung Malim plant and Geely’s 49.9% strategic partnership. Tesla registered 5,467 units (Model Y and Model 3) under the Global EV Leaders Initiative framework. Perodua entered the segment in December 2025 with the QV-E at MYR 80,000 and is expected to capture substantial entry-level share through 2030.
Emerging challengers include Zeekr, XPeng, Denza, Chery Omoda, iCaur, Leapmotor, GWM, Dongfeng, Wuling, Smart, and Neta. BMW and Volvo anchor the premium CKD segment with local i5 and ES90 assembly respectively. Toyota re-entered the BEV segment in April 2026 with three simultaneous model launches. Strategic partnerships, CKD assembly commitments, battery-as-a-service models, and 800V architecture adoption are the primary competitive differentiators for the 2026–2030 period.
Companies Covered
The report profiles 18 company profiles+ companies with full strategy and financials analysis, including:
Recent Market Activity
Table of Contents
Coverage & Segmentation
The Malaysia Electric Vehicle Market report analyzes the market across propulsion type, vehicle category, brand origin, price band, and regional geography for the period 2021 to 2030. The report covers historical data for 2021-2025, with 2025 as the base year, and forecasts spanning 2026-2030. Market sizing is conducted in USD billions and unit volumes. The study examines the full EV value chain, including OEM production, CKD assembly, battery manufacturing, rare earth supply, charging infrastructure, and aftermarket service.
The scope encompasses all electrified powertrain categories including battery-electric (BEV), plug-in hybrid (PHEV), and hybrid electric (HEV) vehicles. Vehicle categories covered include passenger cars (sedans, SUVs, MPVs), electric two-wheelers, electric commercial vehicles, and electric buses. The study evaluates policy impact from the Low Carbon Mobility Blueprint 2021–2030, Budget 2022 through Budget 2026, the Global EV Leaders Initiative, and the National Automotive Policy (NAP) framework. Competitive profiling covers 18 OEM groups operating in Malaysia.
