Tesla, Proton lead Malaysia’s monthly high EV registrations as drivers rush to beat 2026 tax hike

Electric vehicle (EV) registrations in Malaysia hit a monthly high in November as drivers rushed to complete their purchases before tax holidays for imported EVs end after December.

Malaysia registered 5,417 new electric cars in November, a 200.1 per cent rise from the previous year, according to official data from the Road Transport Department, in its final release of registration statistics before the end of 2025.

A total of 810 Tesla Model Y sport utility vehicles were registered, the highest number in November, edging out Malaysia’s best-selling electric car for 2025, Proton’s e.MAS 7, at 786 cars units.

The new high comes after Malaysia’s government announced in October that tax holidays enjoyed by buyers of imported electric car since 2022 would end on Dec 31. Registrations for new EVs in October had set the previous monthly high at 4,345.

Consumers who buy EVs from 2026 will be subject to excise and import duties, which will easily make the cost of imported electric cars go up by 30 per cent. An imported BYD Atto 2 compact SUV that starts at around RM100,000 (S$31,500) is expected to cost about RM30,000 more, according to sales advisers.

The imminent lapsing of the tax exemptions has prompted more drivers to complete their car purchases before the end of the year.

“Finally, getting my first car,” said Penang-based property consultant Ghee Yih Farn, who collected his Tesla Model Y on Dec 6, a month after placing his order. He added that he was eager to test his new SUV’s self-driving functions.

Car reviewer and content creator Tai Choo Yee attributed the higher registration numbers to the Dec 31 deadline for the tax exemptions, with drivers taking into account the time needed to secure loan contracts and car stock.

Locally manufactured EVs such as Proton’s e.MAS 5 and Perodua’s upcoming QV-E will continue to enjoy tax exemptions until the end of 2027, with EV sellers, including Geely-partnered Proton and BYD,

poised to begin assembling cars at their plants in Malaysia

in 2026. These cars will also avoid the RM100,000 price floor placed on imported EVs.

The year 2025 has already been a bumper one for EV registrations in Malaysia, with 23,396 in the first eight months already surpassing the 2024 total of 21,789. EV registrations as at Nov 30 stood at 36,690, with the total for the year expected to exceed 40,000.

While EV registrations in Malaysia have nearly doubled from the previous year, electric cars still make up just 4 per cent of total vehicle sales in the country.

The move to end tax holidays for imported EVs is expected to increase excise duty revenue by 2.3 per cent to RM12.79 billion in 2026, according to Malaysia’s Finance Ministry.

Removing the tax exemptions may also nudge demand towards locally manufactured electric cars, Mr Tai said. “I believe the government is still looking to protect the national brands (Proton and Perodua),” he said.

He added that car manufacturers in Malaysia could work towards improving their production capacity by having a proper plant to produce their own batteries – an important component of EVs that makes up about 40 per cent of a car’s costs.