KUALA LUMPUR, El Sky News – Malaysia’s automotive industry is entering a new era driven by Electric Vehicles (EVs), bolstered by strategic investments and proactive government incentives. The latest developments highlight a strong push toward local production (CKD) and a new road tax structure designed to make EV ownership more affordable.
Proton-Geely EV Plant: A Historic Milestone in Tanjung Malim
The strategic partnership between Proton and Zhejiang Geely Holding Group has reached a major milestone with the launch of Proton’s first EV assembly plant in Proton City, Tanjung Malim. The high-tech facility, built at a cost of around RM80 million, has officially begun operations — marking the start of local EV production for regional markets.
The first model to roll out from this facility will be the Proton e.MAS 7, followed closely by the entry-level e.MAS 5.
Beyond creating new technical jobs specializing in EV systems, this initiative positions Malaysia as a key player in the global electric vehicle manufacturing landscape. With an initial capacity of 20,000 units per year — expandable up to 45,000 — the project demonstrates Proton’s serious commitment to providing Malaysians with modern, affordable EVs.
Government Incentives Drive Green Mobility
The Malaysian government continues to show strong commitment to accelerating EV adoption through several key measures:
- Government Fleet Transition: Plans are underway to gradually replace official government vehicles powered by internal combustion engines (ICE) with EVs, starting as early as 2026. This move is expected to boost EV demand and set an example for the public sector.
- Charging & Infrastructure Incentives: Tax incentives remain available for companies investing in green technology services, particularly those developing EV charging infrastructure nationwide — a vital step in addressing range and accessibility concerns among EV users.
- New Road Tax Structure (2026): The most notable announcement is the introduction of a new EV Road Tax Framework, effective January 1, 2026, replacing the current road tax exemption that ends in 2025.
- Road tax will be calculated based on electric motor output (kW) instead of engine capacity (cc) used for ICE vehicles.
- The new rates reportedly start as low as RM20 per year, capped at around RM850 for high-performance models.
This progressive move has been widely welcomed, as the rates are significantly lower than those feared under the old formula — making long-term EV ownership more cost-effective and competitive with ICE vehicles.
Toward a Comprehensive EV Ecosystem
In essence, Malaysia is taking bold strides toward building a holistic EV ecosystem — from local manufacturing to user-friendly policies and financial incentives.
A related video report showcases developments at Proton’s Tanjung Malim EV plant, which is set to begin assembling the e.MAS 7 model soon.
