As the demand for clean and green vehicles grows, more Malaysians are considering making the switch to electric cars.
Let’s learn about the cost of owning an Electric Vehicle (EV) in Malaysia, through this article.
Contributing Factors of Total Cost of Ownership (TCO)
When it comes to owning an electric vehicle (EV), understanding the total cost of ownership (TCO) is essential as it encompasses various factors that contribute to the overall expenses of owning an electric car. Let’s break down these components.
- The Initial Purchase Cost
- Evaluating Long-Term Savings
- Financing Options
- These may vary based on the different make, models, and features of EVs
- Despite down payment being the largest portion of the initial cost, make sure to also consider other additional expenses such as home charging infrastructure and installation costs, which can typically range between RM3,000 - RM5,000 for an alternating current (AC) home charger and somewhere between RM5,000-RM7,000 for a direct current (DC) home charger1.
[1] “How much does EV charger installation cost in Malaysia?”, Carput, 2023, Link: https://carput.my/how-much-does-ev-charger-installation-cost-in-malaysia/
- Lower operating cost, as generally, electricity cost per kilometre is cheaper than fuel cost per kilometre.
- Lower maintenance expenses, as on average a typical maintenance service for an EV would be twice-a-year where you would only need to check on the vehicle systems and tyre rotations.
Potential long-term savings from various tax incentives and rebate for EVs.
- Interest/profit rates
- Repayment/payment terms
- Loan/financing approvals
- Find out more about the Hong Leong Bank Electric Vehicle Financing
Tax Incentives and Rebates
To further encourage EV adoption, the Malaysian government offers several tax incentives and rebates for EV purchases. Let’s explore some of these incentives.
EVs are eligible for import duty and sales tax exemptions, making them affordable. These exemptions vary based on the vehicle’s price and battery capacity.
EV owners can benefit from the exemption of the road tax rates, including the RM0 on road tax until year 2025, offsetting the costs associated with vehicle ownership. With an EV, you are always saving.
The GTFS offers grants and financing incentives for green technology projects, including EV purchases. The scheme aims to support businesses and individuals interested in adopting clean and sustainable transportation solutions.
Various grants and rebate programs are available for EV purchases in Malaysia. These programs provide financial incentives to offset the initial costs of EV ownership.
Let’s embrace the future of transportation today. Enjoy the benefits of owning an EV and contribute to the sustainable development of Malaysia.
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