MAA: xEV penetration in Malaysia set to reach 9.6% by end of this year
Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said xEVs accounted for 8.6% of total vehicle sales in the first half of 2025.
'We've already achieved around 8.6% xEV penetration in the first half of the year. We're projecting to close the year at approximately 9.6%, supported by the introduction of new models,' he said in a press conference today.
xEV is a collective term for all types of electric vehicles, including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles, battery electric vehicles and fuel-cell electric vehicles.
However, Mohd Shamsor cautioned that if EV-related subsidies are discontinued, the industry could see a spike in last-minute purchases towards the end of the year, followed by a prolonged slowdown.
'In the long run, the outlook would be very bearish,' he warned.
Mohd Shamsor drew parallels to the introduction of HEV about 15 years ago.
'They essentially disappeared from the market for a period until manufacturers developed local assembly capabilities,' he said, adding that local production requires significant planning and cannot be implemented overnight.
'This is why we're advocating for a longer-term, consistent policy direction,' he emphasised.
Commenting on the potential removal of RON95 fuel subsidies, Mohd Shamsor said it could have a similar impact on the auto industry as the earlier adjustments to diesel subsidies. 'On the flip side, it could also prompt more serious consideration of hybrids and EVs.'
Mohd Shamsor also addressed the current wave of heavy discounting in the domestic car market.
'Discounting may help in the short term, but it's not healthy in the long run, especially for consumers,' he said.
Excessive discounts reduce vehicle resale values, affecting early adopters the most, according to him.
'It creates an unsustainable sales environment. Promotions are necessary to attract buyers, but they shouldn't be overdone,' he said.
Currently, fully imported EVs enjoy import and excise duty exemptions until December this year, while locally assembled EVs benefit from additional tax incentives until 2027. EV owners are also exempt from road tax until the end of 2025, with further incentives offered for home charging infrastructure and industry investments.
However, many of these incentives are approaching their expiry, and the MAA is urging the government to extend them to maintain industry momentum.
'We're hopeful that the current subsidies and incentives will be continued. This would allow the industry to plan and support the government's goal of achieving 15% EV penetration by 2030,' Mohd Shamsor said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
20 hours ago
- Malaysian Reserve
Guidehouse Research Explores Evolving Electric Vertical Takeoff and Landing Technology Market
eVTOLs are on the verge of full commercial manufacturing and approval BOULDER, Colo., July 23, 2025 /PRNewswire/ — A new report from Guidehouse Research explores electric vertical takeoff and landing (eVTOL) technology, industry players, and proposed business models for rolling out eVTOLs. Now that EVs are being fully rolled out on the ground, developers are looking at other transformations for moving people around. With technological advances increasing every year, eVTOLs are on the verge of full commercial manufacturing and approval, but are flying-car services really on the horizon? According to a new report from Guidehouse Research, with the imminent certification and commercialization of eVTOL vehicles fueling the idea of cars flying over traffic, market watchers can be forgiven for believing that all traffic problems have been solved, and congestion will never be a problem again. 'Many manufacturers of these aircrafts are attempting to speed up their commercial development by launching them as part of a larger air ride-hailing service, like an 'Uber in the sky,'' says Jake Foose, research analyst with Guidehouse Research. 'Whether or not the market is ready for that service to roll out is one issue, but another is whether the vehicles themselves are ready for a flight hailing service.' According to the report, Guidehouse Research suggests: The current eVTOL target business model is unrealistic and shows few signs of applicability to a larger market. After the initial rollout, eVTOL operators should not focus on flight-hailing services. Battery swapping technology could be developed to alleviate charging infrastructure issues that might arise while operating eVTOLs as passenger aircraft. The report, Electric Vertical Takeoff and Landing Vehicle Services Create Fewer Advantages Than Initially Thought, reviews current eVTOL technology, industry players, and proposed business models for rolling out eVTOL. Guidehouse Research provides detailed and actionable recommendations for eVTOL manufacturers, both for short-term business models and for technology developments that could assist overall market share. An executive summary of the report is available for free download on the Guidehouse Research website. About Guidehouse ResearchGuidehouse Research, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Research can be found at About GuidehouseGuidehouse is a global advisory, technology, and managed services firm delivering value to commercial businesses and federal, state, and local governments. Purpose-built to serve industries focused on communities, energy, infrastructure, healthcare, financial services, defense, and national security, Guidehouse positions clients for AI- and data-led innovation, efficiency, and resilience. With a relentless pursuit of client success and high-quality standards, more than 18,000 colleagues collaborate across the firm to outwit complexity and achieve transformational impact, shaping the future by inspiring meaning in mission. * The information contained in this press release concerning the report, Electric Vertical Takeoff and Landing Vehicle Services Create Fewer Advantages Than Initially Thought, is a summary and reflects the current expectations of Guidehouse Research based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Research nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report. For more information, contact: Cecile Fradkin for Guidehouse Research+1.646.941.9139cfradkin@
New Straits Times
a day ago
- New Straits Times
Car sales set to skid further as headwinds mount
KUALA LUMPUR: After a sluggish first half of 2025, Malaysia's auto market appears to be hitting the brakes hard, with analysts signalling a further slowdown in sales momentum for the rest of the year. Following three consecutive years of record-breaking sales, the market now appears to be settling into a more subdued phase, marked by shrinking order backlogs, tighter loan approvals and intensifying price competition. "The market is showing signs of normalisation amid weakening order backlogs, tighter loan approvals and intensifying price competition, particularly in the non-national segment," said RHB Research analyst Iftaar Hakim Rusli. Total industry volume (TIV) for the first half fell 4.6 per cent year-on-year to 373,636 units, according to the Malaysian Automotive Association (MAA). Despite the softer start, MAA raised its full-year sales forecast to 800,000 units, up from an earlier projection of 765,000. RHB Research is holding a more cautious view, maintaining its 2025 TIV forecast at 730,000 units, which represents an 11 per cent decline from last year. Iftaar said the biggest drag is expected to come from non-national marques, many of which are now feeling the heat from an influx of aggressively priced models, especially from Chinese entrants. These new players have forced incumbents into deep discounting, a move that, while good for consumers, is destabilising the market. "Some buyers may delay their purchases in anticipation of further price cuts from both existing and new non-national marques, thereby destabilising the non-national segment," he said in a research note. Loan approval rates have also taken a hit, dropping to 55 per cent year-to-date from 58 to 63 per cent in the 2022 to 2024 period. Order backlogs, once a sign of healthy demand, are thinning too, with Perodua's backlog falling from 100,000 units to 90,000 and Toyota's from 20,000 to 15,000, said Iftaar. He added inflationary pressures are compounding the problem, squeezing household budgets just as competition heats up. In the electric vehicle (EV) segment, Iftaar expects growth to continue but remain modest due to high prices and limited charging infrastructure. The current tax exemptions for completely built-up (CBU) EVs, which have supported early adoption, are unlikely to be extended beyond end-2025, as the government shifts its focus to incentivising locally assembled EVs. "An extension of the tax holiday for CBU EVs would be counterproductive for incentivising original equipment manufacturers to establish local production facilities. "While we expect EV numbers to continue picking up in the coming months, growth in market share is likely to remain moderate due to structural headwinds, such as high pricing and limited availability of charging infrastructure. "As such, EVs are unlikely to influence overall TIV in the near term," he said. Another overhang is the impending implementation of the revised open market value (OMV) excise duty in January 2026. Iftaar said that although the measure was recently deferred again, it could lead to a 10 to 30 per cent price hike for completely knocked down vehicles unless mitigated by the authorities. He noted that the Finance Ministry has signalled that such a steep hike is unlikely but has yet to finalise the new pricing methodology. "The new OMV takes into account the engineering work, royalty payments and license fees, amongst others. "For CBU vehicles, prices are based on the cost, insurance and freight, on which import and excise duties are imposed," he said. Meanwhile, HLIB Research revised its 2025 TIV forecast slightly higher to 770,000 units to reflect stronger-than-expected demand, supported by aggressive sales and promotional campaigns as well as the launch of new, attractive models. HLIB analyst Daniel Wong said order backlogs have eased to between 120,000 and 130,000 units, with Perodua accounting for the bulk at about 100,000 units. He said Perodua is on track to sustain its sales momentum through year-end, aiming for 345,000 units in 2025, backed by steady order intake and production levels. "While the TIV outlook remains robust, we expect margins to come under pressure due to intensifying competition across the market. "We expect continued stiff competition for the RM100,000 to RM200,000-priced segment due to normalising of consumer demand and aggressive new launches and sales campaigns," he said. Wong added that companies with significant exposure to the US dollar, such as Toyota and Nissan, stand to benefit from the stronger ringgit. Meanwhile, Honda and Mazda, with heavier Japanese yen exposure, may continue to benefit from the relatively weak yen.
The Star
2 days ago
- The Star
Tesla's easy money from regulatory credits set to dry up amid weakening sales
FILE PHOTO: A logo of Tesla Motors on an electric car model is seen outside a showroom in New York June 28, 2010. REUTERS/Shannon Stapleton/File Photo SAN FRANCISCO (Reuters) -A key driver of Tesla's profit is disappearing fast as the U.S. government changes policies on an environmental asset known as regulatory credits. Investors are likelyto have a number of questions for Chief Executive Elon Musk when Tesla reports second-quarter results on Wednesday. Among them are how fast the EV maker can turn a trial robotaxi program into a money-making business, how to avoid a decline in sales for the second year in a row, and Musk's possible political plans. Less sexy, perhaps, is the issue of regulatory credits, which are bought by traditional automakers from electric-vehicle companies to make up for the tailpipe pollution from their gasoline-powered vehicles. But this income segment is crucial for Tesla's finances, having been the main driver of its profit in the first three months of the year. Without the income from those credits, sold to internal combustion engine automakers, Tesla would have reported a first-quarter loss, and Musk may be pressed to say how long he thinks Tesla will be able to sell credits. The U.S. government incentivized zero-emission vehicle production by giving credits to EV makers while imposing hefty penalties on combustion engine vehicle manufacturers that fail to meet emission standards. The traditional automakers can avoid the fines by purchasing credits from companies like Tesla. Recent legislation passed under the U.S. President Donald Trump, however, is set to eliminate fines for automakers that fail to meet National Highway Traffic Safety Administration's Corporate Average Fuel Economy standards — which underpin much of the demand for these regulatory credits. "They are making conventional ICE vehicles more competitive while making EVs less competitive," said Batt Odgerel, a director at the Energy Policy Research Foundation, referring to Congress, Trump and the federal government. Tesla risks losing revenue from the credits as well as market share, he added. The future of two other sources of credits - from the U.S. Environmental Protection Agency and California's zero-emission vehicle program - is uncertain, with proposed rule changes and political and legal challenges. "That is certainly likely to be a big loss of revenue for automakers" that were selling credits, added Chris Harto, a senior policy analyst at Consumer Reports. Tesla has reported more such sales than anyone else in the automotive sector. FASTER DECLINE THAN EXPECTED One question for Tesla is how fast the credit sales are falling and whether the EPA and California transactions are holding up for now. Other credit producers include smaller EV playersRivian and Lucid. Analysts at William Blair calculate that about three-quarters of Tesla's credit revenue comes from CAFE standards. Within days of the new law, they slashed estimates for Tesla's 2025 credit revenue by nearly 40% to about $1.5 billion. They expect it to plummet to $595 million next year, before being wiped out in 2027. That is a faster decline than seen by many on Wall Street. Tesla's revenue from credit sales will fall 21% this year to $2.17 billion and fall consistently in the coming years, according to 14 analysts polled by Visible Alpha this month. "The elimination of the corporate average fuel economy (CAFE) fines requires a reset in expectations," the William Blair analysts said in their note earlier this month. Revenue from credits wasalways expected to dwindle as traditional automakers ramped up production of zero- or low-emission cars, but not so fast. Tesla has acknowledged its financials would be "harmed" if demand and prices of credits dropped. It did not respond to a request for comment. The credits, which have virtually no cost to produce, were instrumental to keeping Tesla profitable several years ago. While surging Model Y demand once pushed Tesla's profit well above regulatory credit income, recent sales declines and aggressive price incentives have meant regulatory credits are once again a key support for profit. Tesla's loss is a win for internal combustion engine automakers such as General Motors, Ford and Honda, and it comes on top of a second win - the early end of a $7,500 U.S. tax credit for EVs, which now will happen at the end of September. (Reporting by Abhirup Roy in San Francisco and Akash Sriram in Bengaluru; Editing by Peter Henderson and Matthew Lewis)
