Incentives to Buy an EV Right Now
Electric vehicles offer many benefits to their owners compared to regular internal combustion engine ones. They offer a quieter driving experience, emit no harmful gases and deliver better acceleration from a standing start. They are being promoted all over the world as a sensible replacement to what we’re currently driving.
In addition to this, the Malaysian government and private outlets are going out of their way to sweeten the pot. Various incentives are being introduced to make EV ownership a “no brainer” compared to traditional ICE vehicles.
Cheaper Road Tax
Road tax for ICE vehicles is calculated based on engine capacity. The higher the number of CCs, the more expensive the price becomes. For EVs however, the road tax is calculated based on power output. Conventional wisdom will have you believe that that would put them at a disadvantage, but that isn’t true.
In fact, last month Transport Minister, Anthony Loke had announced that the ministry would make EV road tax about 85% cheaper than equivalent ICE vehicles. That would make it extremely affordable to own them compared to traditional ones. That said, now until the end of 2025, EVs are exempt from paying any road tax.
No Congestion Charges
To reduce traffic in congestion-prone areas, cities like London have imposed congestion charges on private vehicles entering from 7am to 6pm on weekdays and 12pm to 6pm on weekends. This forces people to ditch their vehicles and rely on public transport to visit said places.
According to Transport for London (tfl.gov.uk), the introduction of the Congestion Charge helped reduce congestion by 30%, increased bus travel in central London by 33%, limited traffic entered the zone by 18% on weekdays, and converted 10% of travel from cars to walking, cycling or public transport.
The Malaysian government plans to implement a similar congestion charge in the city centre, however there aren’t any concrete plans for now. That said, they are mulling over the idea of exempting EV vehicles from said charges.
Though this decision might draw the ire of ICE vehicle owners, it does make sense. While EVs do contribute to traffic congestion in the city centre, they won’t emit harmful gases that reduce air quality in the vicinity. That means that they would cause less of a negative impact compared to petrol/diesel power cars.
Reserved Parking Spaces
Several private car parks at malls and other facilities have parking spaces reserved for EVs only. They’re also usually fitted with electric chargers that allow users to top up their EV batteries. Such spaces might seem to be a Godsend on weekends when it’s impossible to find a vacant parking space. And if you are an EV owner, you could slot into one of said spaces.
Fluctuating Fuel Prices
As the Malaysian government gradually weans us off subsidized fuel prices, eventually, filling up our cars will begin to hurt our wallets. Completely unsubsidized fuel prices affected by supply & demand as well as other market forces. This will cause said prices to fluctuate from one week to another.
That might not be the case if you own an EV. Even when electricity subsidies do end, it won’t be subjected to the same pricing volatility as actual fuel prices. This would mean charging an EV is a more predictable expense as opposed to ICE vehicles.
