Pekema proposes way to spur EV growth

By CARSIFU | 7 February 2022

PETALING JAYA: The Malay Vehicle Importers and Traders Association of Malaysia (Pekema) is urging the Government to form an electric vehicle (EV) supply chain committee to be headed by the Prime Minister to set the tone for development of electric cars in the country.

It said more must be done to promote this segment of the auto industry beyond what was outlined in the National Automotive Policy and the tax exemptions provided for under Budget 2022.

Many obstacles continue to plague the transition towards EVs in Malaysia, Pekema said following the association's 40th annual general meeting recently.

Pekema said at present, factors inhibiting the growth of EVs in the country are the steep prices of the cars that are fully imported, lack of chargers, lack of clear long-term government policy to guide EV development and the poor local industry response such as from component vendors towards nurturing EV growth.

At present, there are no EVs selling for under RM100,000, with the lowest priced being the Hyundai Kona Electric at around RM150,000.

Other fully electric vehicles available in Malaysia from official importers are the MINI Electric and Porsche Taycan models.

BMW Malaysia has started taking bookings for its iX3, iX and i4 EV models, which are expected to be delivered to customers this year.

In a press statement, Pekema president Datuk Zainuddin Abdul Rahman proposed seven steps to spur the growth of EVs:

> Extend road tax exemption to end of 2030

> Give full exemption from import duty, excise and sales tax on imported EVs until end 2025

> Offer individual income tax relief of up to RM5,000 for installation, rental, purchase, and hire purchase or subscription fees for EV chargers.

> Subsidise RM5,000 for those trading in their combustion engine cars for EVs until end 2030

> Mandate local car assemblers to produce 30% of total output as EVs by 2030. Incentivise with import duty exemption, excise and sales tax for local EV assembly until end 2030.

> Ensure local authorities and Tenaga Nasional provide facilities for public chargers in strategic places.

> Provide free parking for EV owners.


On its plans for 2022, Pekema said it aims to import 100 - 150 brand new EVs into Malaysia and that they would comply with JPJ approval requirements.

Pekema has been importing Tesla cars since 2019. And it aims to ramp up the import of the various models such as Model 3 and Model Y in the next two years, sourcing the cars from Hong Kong and UK.

It is also seeking to diversify its sourcing, looking to existing Tesla markets in Singapore, Australia and New Zealand.

Charging infrastructure and aftersales support are also two areas Pekema is engaged in.

Last August, Pekema and the Malaysia Automotive Robotics and IoT Institute signed an agreement to accelerate electric vehicle (EV) infrastructure development.

They planned to jointly set up 1,000 DC rapid EV charging stations around the country by 2025.

Pekema announced 12 charging stations are up and running in 2021, with funding coming from its members.

Apart from the Malaysia Automotive Robotics and IoT Institute, Pekema is also talking to Tenaga Nasional and Petronas to strengthen charging infrastructure.

Pekema acknowledged strong aftersales support as important for EV growth. It said its Pekema Academy would bring in EV specialists to help train technicteam up to ians on handling and servicing EVs.

Pekema said it is also in discussions with several parties to obtain a franchise to import and distribute EVs in Malaysia and also for the region.

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