Hybrid Electric Vehicles (HEVs) such as those sold by Toyota may make more sense for the common man but needs government support.
As Malaysia navigates the shift towards electromobility, the debate over the best intensifies. While EVs dominate headlines, HEVs offer a more accessible and immediate solution for everyday consumers. Yet, government policies continue to favour fully imported EVs over locally assembled hybrids – why?
We ask this question because we hear from many readers, friends and relatives that the jump to electric vehicles is too far a step for many households. For some, it’s a change of lifestyle that is difficult or impossible to consider – they are either in a single vehicle household or live in condominiums without access to charging stations. For others, it’s a question of brand trust as a majority of ‘attainable’ electric vehicles are being offered by brands that were not even here a year ago and didn’t even exist until a decade ago.
Majority car buyers wants to reduce their carbon footprint but wants to do it progressively and with a brand they trust. EV technology has its advantages but has a lot of unknowns and potential anxieties attached. Hybrids on the other hand, requires no lifestyle changes and has a proven history in our market and on the international stage.
The fact is, we have options in Malaysia. Toyota, for instance provides hybrid options through familiar nameplates like the Innova Zenix, Corolla Cross, and Camry, ensuring a smooth transition to lower emissions.
Hybrid are outselling EVs despite fewer incentives. In 2024, Malaysia recorded 30,796 hybrid sales vs just 14,766 EV sales, even with EVs enjoying significantly lower pricing due to tax breaks.
The other thing to think about is what happens when the current tax exemptions for fully imported EVs expire end of this year. Many brands have entered the market solely to take advantage of these temporary benefits. But what happens next? The government will require these brands to set up local assembly to continue maintain some form of tax incentives, but so far only a handful of EVs are locally assembled. Once the tax break on imported EVs expires, what happens to these brands and EV options? How many will continue to invest in Malaysia and support the local economy and local customers?
Meanwhile, Toyota has already invested in local hybrid assembly with its popular Corolla Cross Hybrid, demonstrating a long-term commitment to sustainable mobility. This success reinforces Toyota’s position as the No.1 non-national brand in overall vehicle sales volume.
As Malaysia moves towards setting more realistic goals for the automotive market, it is crucial to consider solutions that benefit the majority of car buyers. Not everyone can make an immediate switch to fully electric vehicles, especially as blanket fuel subsidies are about to be removed.
Supporting locally assembled hybrid technology with favourable tax incentives is one of the most effective ways to ease this transition.
The choice isn’t between EVs and ICE vehicles – it’s about supporting a multi-pathway approach that ensures no one is left behind. Hybrid technology is ready now and can immediately benefit consumers and the environment, but it requires government backing to reach its full potential.
The future of mobility shouldn’t be dictated by temporary tax breaks. It should be built on practical, sustainable solutions that work for all Malaysians.
