Malaysia electrifies its automotive industry

Malaysia aims to become a leader in electric vehicles in Southeast Asia through massive investment and government initiatives.

Share:

Malaysia, one of Southeast Asia’s largest automotive markets, is positioning itself as a key player in the electric vehicle (EV) industry.
The development of the Automotive High-Tech Valley (AHTV) bears witness to this ambition, with the aim of promoting digital transformation, reducing carbon emissions and encouraging the adoption of EVs.
Malaysia is also encouraging the development of green energies, as demonstrated by the presence of Sarawak in Malaysia, one of the leaders in green hydrogen in Asia.

Investment and market growth

Sales of electric vehicles in Malaysia are booming.
According to the Malaysian Automotive Association (MAA), they increased by 112% year-on-year, reaching 6,617 units in the first half of 2024.
This rapid growth is fuelled by the entry of new EV brands into the Malaysian market, accelerating the development of the automotive supply chain.
The AHTV project, led by a joint venture between DRB-Hicom Bhd and Zhejiang Geely Holding Group Co Ltd, plans to attract around RM 32 billion (USD 6.8 billion) in investment over the next ten years.
This initiative reinforces Malaysia’s attractiveness to foreign investors, including the world’s leading automakers.

Government incentives

The Malaysian government is actively supporting this transition with various incentives, such as tax breaks, exemptions from import and excise duties, and subsidies for charging infrastructure.
These measures aim to make the adoption of EVs more attractive to consumers and businesses alike.
The rise of e-commerce, car-sharing and home-delivery services is also contributing to this transition, as consumers seek more personalized, connected and environmentally-friendly options.
This evolution creates new opportunities for the automotive industry, from original equipment manufacturers (OEMs) to after-sales services.

Automechanika Kuala Lumpur

These developments are highlighted at the upcoming edition of Automechanika Kuala Lumpur, Malaysia’s leading automotive aftermarket trade show.
From August 1-3, over 300 local and international exhibitors from 20 countries will gather at the Kuala Lumpur Convention Centre (KLCC).
The show covers various areas of the supply chain, such as parts and components, diagnostics and repair, and automotive mobility solutions.
The Automotive Mobility Solutions zone showcases the latest innovations in urban development, city planning and smart mobility, focusing on local infrastructure and technology.

Conference on Automotive Mobility Solutions

The Automotive Mobility Solutions conference, held during the first two days of the show, is a flagship event.
It brings together speakers from renowned companies such as Bosch Rexroth, PETRONAS, Siemens, and many others, addressing topics ranging from supply chain, electrification and digitalization, to logistics and automation in automotive manufacturing.
Discussions delve into mobility solutions, the transition to electric, digitization and optimization of the automotive supply chain, offering participants a comprehensive view of market trends and opportunities.
Malaysia is well on the way to becoming a major hub for the electric automotive industry in Southeast Asia.
Government support, combined with growing interest from foreign investors and changing consumer habits, is propelling the country towards increased adoption of electric vehicles and smart mobility solutions.
The transformation of the Malaysian automotive industry, illustrated by the development of AHTV and events such as Automechanika Kuala Lumpur, promises to redefine the mobility landscape in Asia.

  • Populaires ​
United States selects Westinghouse and Radiant to test their nuclear microreactors
TotalEnergies sells 50% of its renewable assets in Portugal for €178.5mn
EDF postpones restart of Flamanville EPR to August 13
Ardian completes Akuo takeover and installs Bruno Bensasson at the helm
Strong Rise in Solar Power Reduces Summer Demand for Natural Gas
Latin America’s six largest economies accelerate transition to renewables
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
Canada funds 13 Indigenous energy projects with $40mn investment
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
Germany extends electricity price aid to 2,200 companies
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
Czech Republic hit by massive power outage disrupting the economy
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
France anticipates significant slowdown in emission reductions starting in 2025
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING