Electric vehicles in Malaysia will enjoy reduced road tax compared to petrol and diesel cars after 2025; special number plate EV1-9999

In his remarks to celebrate the launch of the new GWM Seremban 4S hub, Transport Minister Anthony Loke revealed some of the developments his Department is taking regarding the electric vehicle (EV) industry. in Malaysia.

First, the road tax. Currently, the road tax on electric vehicles in Malaysia is waived from January 1, 2022 by the end of 2025but starting in 2026, owners and potential buyers will have to pay according to a system based on kilowatts.

The final road tax amount for electric vehicles is calculated based on the total rated power of the electric motor(s), with different power brackets defining the base rate and the accompanying progressive (if applicable) . Simply put, the more power from the electric motor(s), the more you pay – You can see a few examples here.

In his statement, Loke said his department knows that the current calculation method can frustrate potential electric vehicle buyers due to the high costs of road taxes that can result. Therefore, he instructed the transport ministry to review the road tax structure for electric vehicles so that people are more inclined to buy electric vehicles, even after the end of the road tax holiday.

No specifics were given, but Loke said it would be “very affordable and even cheaper than an internal combustion engine car”. For some context, the BYD Atto 3, which retails from RM149,800, will have a road tax of RM903 after 2025. Meanwhile, a similarly sized HR-V in the guise of e: The HEV RS with the 1.5-litre naturally aspirated engine is priced at RM140,800, but the applicable road tax is 10 times lower at just RM90.

In addition to the road tax issue, Loke also said a new batch of ‘EV’ number plates will be issued in the coming months for EVs. This will be similar to the license plate series issued in different states whereby after completing the series starting from ‘EV1’ to ‘EV9999’ we will get ‘EVA’, ‘ EVB’, ‘EVC’, etc

According to the transport minister, these number plates will be “RFID-linked” and also serve a safety purpose, as in the event of an accident emergency responders will know by detecting license plate ‘EV’ that they are dealing with a vehicle with a high-voltage powertrain that requires specific protocols to handle safely.