Long term incentives to spur EV industry required — ZEVA

EV industry

KUALA LUMPUR — The Zero Emission Vehicle Association (ZEVA) appreciated the government for the various policies and frameworks announced with regard to Electric Vehicles (EV). In the Low Carbon Mobility Blueprint authored by Malaysia Green Technology Corporation (MGTC), the government targeted 15% EV in the annual new sales. 

We calculated that this would mean 700,000 EVs on the road by 2030. This is then strengthened by the National Energy Policy (Dasar Tenaga Negara) which targets 38% of EVs in the annual new sales by 2040. All to achieve the Rancangan Malaysia ke-12 i.e., to achieve net zero carbon emission by 2050.

The Budget (Belanjawan 2023) announced on 7th October 2022 was also seen as progressive. ZEVA hopes that continued stamina can be shown in this Belanjawan slated to be tabled on February 24, 2023.

We, therefore, propose some interventions that will push the number from the current number of around 2,000 to 700,000 EVs on the road by 2030.

While more approval permits are being issued for foreign EVs to be sold in the country, which we thank MITI for the great effort, we believe that the charging industry also needs to respond.

As we run the survey to the EV users in Sept 2022 (graphic below), the top 2 concerns of EV adoption are driving distance anxiety and lack of destination charging infrastructure.

s of now, the number of chargers in the country is estimated to be close to 800 for AC chargers and 100 for DC fast chargers. This is about 10% of the target outlined in 2025 in the Low Carbon Mobility Blueprint (i.e 10,000 chargers).

ZEVA’s Proposal to Spur the Number

Therefore, the following is among the proposal of ZEVA for the government to consider in their formulation of the 2023 budget, with a focus on the infrastructure:

City chargingHighway chargingHigh rise building
Incentives for starting up cost for any interested local and city councils to set up public charging in anyparticular city.Funding allocation of RM500k for each rest area catering for 6 DC chargers per rest area.Grant for non-landed property managers for EV charger installation at RM10k each.

Most of the incentives as shown of the above are not to cover 100% of the chargers cost but rather to cater for the associated cost in setting up charging facilities. Some examples are:

  • the land for the new power supply substation
  • new cable trenching
  • utility mapping
  • mechanical, civil and electrical consultancy work and many

The government’s assistance is needed as the first movers’ assets will only be utilising a fraction of the full capacity of these facilities.

ZEVA believes that the subsequent companies that intend to deploy their chargers nearby will be able to easily leverage these existing facilities, thus encouraging more to invest.

In addition, ZEVA is also proposing a matching grant for R&D in the EV industry, specially catered for the automotive industry. We also proposed a cash rebate for trade-ins of petrol/diesel-fueled vehicles to EVs and cash incentives for EV new purchases. This small incentive will be useful to inspire some, if not all, of the high-end new vehicle buyers annually (ZEVA estimated at around 100,000 units).

Apart from the above, ZEVA is looking forward to the government to consider the existing incentives for EVs to be extended up to 2030 to give room for the industry to respond.

Savings from the Targeted Group Fuel Subsidy

Given the government’s increasing determination to implement a targeted fuel subsidy restructuring, ZEVA also realizes that the saving from the targeted group fuel subsidy can be used to incentivise the charging infrastructure. Our initial calculation indicated that the above incentives would require a small percentage of this saving i.e. around 16.5%. This will amplify the number of EVs to 15 times growth and be able to reduce 17% of greenhouse gas emissions.

EV Numbers

On another note, ZEVA strongly encourage the Road Transport Department (Jabatan Pengangkutan Jalan) under the Ministry of Transport to announce new EV registration on monthly basis to enable proper monitoring of EV targets.

ZEVA hopes that the government will consider our above proposals and concerns related to the charging industry and EV adoption. We believe that longer-term incentives are needed to catalyse the expected EV growth trajectory.

About ZEVA

Zero Emission Vehicle Association (ZEVA) is a non-governmental organization (NGO) and the first association in Malaysia to bring together all like-minded stakeholders in a transportation ecosystem to advocate for a cleaner environment via the adoption of battery electric vehicles (BEV). ZEVA provides a platform for all association members to express their concerns to key industry stakeholders. With this, we contribute to the development of applicable laws, policies, and/or standards on BEV issues. We aspire to improve public knowledge of the usage of BEVs towards a cleaner environment by organizing events that allow networking among members and stakeholders interested in BEV-related activities.

Our mission is to encourage the use of BEVs to reduce carbon emissions and contribute to a sustainable transportation system. Find us at https://www.myzeva.org/