EV Diversity

EV Incentives
  • The transition from ICE to EV requires not only vehicles but also an ecosystem encompassing charging, servicing, sales, manufacturing, assembly, grid capacity, regulations and policy.
  • To seed this transition, various countries have offered incentives, eg NO (no import taxes and VAT, 50% parking discount, access to bus lanes), CN ($2K subsidy, provision of number plate which is usually very hard to obtain), US ($12.5K tax credit - reduces taxes payable, not just a deduction).
  • MY just announced its EV incentives yesterday: no import, excise, sales, road tax and a tax credit of $600 for charging facilities. Many EVs are priced around the $35K mark (MYR 140K), which without the new incentives will cost around $60K (MYR 240K) in MY. Thus, the potential savings or incentive could be around $25K (MYR 100K).
  • Though the incentives look they are more for the well-heeled, in effect, if applied across the board, it could be a basis of the genesis of a new market, as per our table below. Of note are the two MY auto makers, one affiliated with Geely, the other Toyota.

EV Diversity