MALAYSIA has made real progress in electric mobility since 2022.
As part of the National Automotive Policy 2030 framework to spur EV adoption, early incentives gave customers a more affordable first experience while giving automakers the confidence to invest for the long term.
That progress is visible in growing interest, expanding charging, and real industrial commitments on the ground.
Yet adoption remains at an early stage. EVs still represent a modest share of total sales, and charging coverage, while improving, has customers questioning whether an EV can fit into daily life.
As we approach the end of 2025, the responsible path is a targeted extension of EV incentives.
A time-bound extension protects customers from sudden cost spikes, sustains momentum, and ties support to clear milestones.
Structured to taper gradually and align with localisation, incentives build resilience rather than dependency. Ensuring Malaysian customers remain supported during this critical phase keeps the nation competitive with regional peers and helps secure long-term gains.
Stellantis is committing to Malaysia for the long term, regardless of the policy outcome. But a steady policy runway helps us pass more value to customers sooner.
By the end of 2025, Stellantis will begin local assembly of Leapmotor EVs at our Gurun facility, reinforce aftersales through Eurorepar’s nationwide network and our regional parts hub in Malaysia.
These investments anchor jobs, skills, and technology transfer – benefits that translate into better availability, service and total cost of ownership for customers.
While we believe a focused extension is the most effective way to secure customer confidence, incentives cannot last forever.
Should the government choose not to extend, it will signal a natural evolution in Malaysia’s EV journey. This should not be seen as a retreat, but rather, a shift toward self-sustaining growth.
For the industry, it could mean doubling down on localisation and aftersales so customers feel supported regardless of subsidies.
If an extension is pursued, it should be disciplined: time-limited, transparent, and tied to localisation and ecosystem milestones.
Each phase must deliver measurable benefits for customers while strengthening Malaysia’s industrial capability regionally.
But whether incentives continue or sunset, Stellantis is prepared. Stellantis will keep investing, localising, and building the confidence customers need to choose electric, and to empower electrification, for the long term.
*The writer is the managing director of Stellantis Asean
© New Straits Times Press (M) Bhd
