![MITI: Tax exemptions for BEVs to expire by 2025, Malaysia encourages BYD to invest in CKD production here 01]()
Malaysia’s tax exemption (import and excise duty) for battery electric vehicles (BEVs) will expire as planned on 31-December 2025, and BEV manufacturers are encouraged to invest in local production, said Tengku Datuk Seri Utama Zafrul Minister of Investment, Trade & Industry, at the launch of the BYD Seal this morning.
Tengku Zafrul said sales of BEVs have increased by more than four folds last year, from around 3,000 units in 2022 to 13,000 units in 2023.
“I believe BYD’s brand registered the highest number of units, so congratulations to the team. When you quantify the percentage of the increase, that’s actually an increase of 400%. It signifies our strong policy push that has generated strong trends in the shift from ICE to EVs among Malaysian consumers.
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“The indirect tax exemption offered by the government for imported CBUs (of battery electric vehicles, BEVs) has certainly played its role. Beyond 2025, we warmly welcome BYD if they have plans to expand its presence in Malaysia and invest in a production base here.”
Zafrul highlighted the strong multi-lingual skills of Malaysians, including English and Chinese; strong rule of law; highly established electrical and electronics industry as pull factors.
“We welcome global EV makers to make Malaysia their regional hub to access this fast growing ASEAN EV market,” he added.
Last year, local company CSH Alliance announced that its subsidiary Alliance EV (AEV) has obtained the manufacturing license to locally assemble the BYD T3 electric van at DRB-Hicom’s Automotive Hi-Tech Valley in Tanjung Malim, Perak. However, there have been no updates on the matter since.
Meanwhile, BYD has announced that it will be setting up a 150,000 units per year plant in Thailand. Construction will begin this year 96 hectares (237 acres) of land in the eastern province of Rayong.
The investment is worth 17.9 billion Baht (~RM 2.4 billion).
![MITI: Tax exemptions for BEVs to expire by 2025, Malaysia encourages BYD to invest in CKD production here 01]()
The China-made BYD Seal is the third BYD model launched in Malaysia, after the Atto 3 and Dolphin. The Tesla Model 3-rivalling Seal is priced from RM 179,800 for the entry rear-wheel drive variant, and RM 199,800 for the all-wheel drive variant.
Also read: Watch out Model 3 - BYD Seal launched in Malaysia, from RM 179k, up to 530 PS/670 Nm
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