The Malaysian government has set an ambitious target for Proton and Perodua, the country’s national car brands, to introduce electric vehicles (EVs) by 2025. This announcement was made by Deputy Minister of International Trade and Industry, Liew Chin Tong, during a parliamentary session in response to a question on the affordability of EVs in Malaysia.
In order to boost the adoption of EVs, the government currently exempts completely built-up (CBU) EVs from import and excise duties. However, there is a minimum floor price of RM100,000 set for imported EVs, which means that lower-priced EVs like the Wuling Air and Neta V, which are priced below RM100,000 in other countries, won’t be available in Malaysia anytime soon.
The rationale behind this price restriction is to provide local carmakers with the time and opportunity to prepare themselves for the transition towards electrification. By allowing them to develop their capabilities in producing EVs, the government aims to protect the local automotive industry and ensure a smooth and just transition that safeguards jobs and benefits local suppliers.
While some may argue that this approach reflects protectionism, it is crucial to consider the long-term benefits for the local players and the overall automotive ecosystem. Opening the floodgates to cheap EV imports, particularly from China, may provide short-term affordability but could undermine the local industry’s growth and sustainability.
It is important to emphasize that the government’s objective is to develop the local automotive industry and encourage the production of EVs with local content. The policy does not impose price restrictions on locally assembled EVs, providing an opportunity for all auto players to establish their manufacturing presence in Malaysia.
As Malaysians, we have to weigh the benefits of protecting and nurturing our local industry against the temptation of cheaper imports. While affordable EVs from other countries may seem appealing, we should also consider the long-term impact on the economy, jobs, and the development of our own industry.
In conclusion, the government’s target for Proton and Perodua to introduce EVs by 2025 is part of a larger strategy to foster the growth of the local automotive industry. By gradually transitioning towards electrification and supporting local players, Malaysia aims to become a key player in the EV market while ensuring long-term economic stability and job opportunities.
Frequently Asked Questions (FAQ):
Q: What is the government’s target for Proton and Perodua regarding electric vehicles?
A: The government has set a target for Proton and Perodua to introduce electric vehicles (EVs) by 2025.
Q: Why are lower-priced imported EVs not available in Malaysia?
A: There is a floor price of RM100,000 set for imported EVs in Malaysia to protect and provide opportunities for local carmakers to prepare for electrification.
Q: Is the government imposing price restrictions on locally assembled EVs?
A: No, the government does not impose price restrictions on locally assembled EVs, encouraging all auto players to establish their manufacturing presence in Malaysia.
Q: What is the rationale behind the government’s approach?
A: The government aims to develop the local automotive industry, protect jobs, and support local suppliers by gradually transitioning towards EV production with local content.
Q: What should Malaysians consider when weighing the benefits of cheaper imports?
A: Malaysians should consider the long-term impact on the economy, jobs, and the development of the local industry when evaluating the benefits of protecting and nurturing the local automotive industry.