Malaysia is headed in the same directions as Australia with where the EV is concerned
EV sales in Australia have fallen to their lowest point in two years, with more Australians choosing either traditional petrol engines or hybrid vehicles that offer greater range security. According to the Australian Automobile Association (AAA), just 17,914 EVs were sold in the first quarter of 2025, making up a little over 6 percent of total vehicle sales in the country.
This figure mirrors the same period in 2023, when 17,396 EVs were sold, and represents a decline from the final quarter of 2024, when 21,331 EVs accounted for 7.42 percent of sales. This quarter-to-quarter drop of 1.12 percent in market share highlights growing concerns within the EV industry.
Moreover, experts point to reduced government support as a key factor influencing this decline. Tony Weber, CEO of the Federal Chamber of Automotive Industries, emphasized the importance of subsidies in sustaining EV demand. “Subsidies are vital to the success of EV policy. In markets like Europe and New Zealand, EV sales dropped when subsidies were reduced.” he told carsguide.com.au.
However, the fall in EV sales has not led to a wholesale return to petrol-only vehicles. Instead, hybrid models, particularly PHEVs, have surged in popularity. Australians appear to be embracing these alternatives as they offer environmental benefits alongside the practicality of a combustion engine.
In the first three months of 2025, PHEV sales nearly doubled to 13,698, capturing nearly 5 percent of the market, up from 7,556 (2.63 percent) in the previous quarter. Sales of conventional hybrid vehicles also grew, increasing from 42,618 to 46,115 over the same period. Meanwhile, petrol-powered vehicles continued to dominate the market but saw a slight dip.
On top of that, despite the dip in EV sales, the industry remains optimistic. Aman Guar of the Electric Vehicle Council believes the downturn is temporary. “A post-FBT exemption dip was expected. Once drivers switch to EVs, they rarely go back. The convenience, driving experience, and cost benefits will continue to make EVs more attractive over time.” he said.
So where will Malaysia be headed in terms of EV sales? Well, we know the West is ahead of us as EVs have been there longer but in Malaysia we now have EV road tax and subsidies will be a thing of the past by the end of the year so it appears that we will also be headed in the same direction as Australia soon.
We got all this from News.com and their full article is linked here. Thank you News.com for the information and images.
