PUTRAJAYA – Motor vehicle licences for zero emission vehicles (ZEV) will be 85% cheaper on average effective January 1, 2026, when the government waiver ends on December 31, 2025.
The fee, which is applicable to pure battery EVs and fuel cell EVs, will remain lower than traditional internal combustion engine (ICE) cars, Transport Minister Anthony Loke announced at a press conference at his ministry, here today.
Block 1 is set at the engine’s power output of 1-100,000W, followed by the next block (100,001-210,000W) and so on.
Each block has a minimum and maximum fee, for example, block 1 is priced between RM20 and RM70.
For example, the motor licence fee for a 110,000W vehicle is calculated as such:
Fee for first 100,001W is RM80
The additional fee for the next block of 9,999W is RM20
Total motor licence fee is RM80 + RM20 = RM100
Loke said the fee will be revised every five years at the very least to review the objectives in the transition to ZEVs as well as their impact on government revenue.
“Today’s announcement sends a very important message to EV automakers and manufacturers, signalling that Malaysia is committed to becoming a manufacturing hub for EVs.
“We are prepared to accept the potential revenue loss from reduced road taxes because the long-term benefits of transitioning to EVs far outweigh the immediate financial impacts.”
In addition, the government will soon introduce a special plate for EVs, which will be distinguishable from those of ICE vehicles.
Loke said the special plates will be issued by car manufacturers, who will collaborate with the government on the specifications and installation process.
“We will collaborate on the materials and other details. More information will be provided later.”
He added that the government is beginning the transition of its own fleet to EVs and Prasarana Malaysia Bhd has been instructed to adopt EV buses progressively, ensuring that the necessary infrastructure is in place to support this shift.
In February 2022, the Road Transport Department announced the incentive offer of full road tax exemption for EV vehicles from January 1, 2022 to December 31, 2025. – June 4, 2024