Is EV sales declining?

Currently, the electric vehicle (EV) market in Malaysia has not shown a downward trend in sales; on the contrary, it has exhibited significant growth momentum. In November 2025, sales of battery electric vehicles (BEVs) reached 5,417 units, surging nearly 200% year-on-year, while cumulative sales in the first 11 months stood at 36,690 units, representing an 85% year-on-year increase. This growth is primarily driven by the impending expiration of import duty and consumption tax exemption policies at year-end, as well as the concentrated launch of new models such as the BYD Seal 6 and Xpeng G6. Hybrid vehicle sales also increased by 20.5% during the same period, demonstrating that new energy vehicles (NEVs) have become the market's core growth driver. Although total national new vehicle sales experienced a slight 1% year-on-year decline, EV penetration has risen from 5% in 2024 to 7%, with the government targeting 20% by 2030. It should be noted that current growth is partially attributable to consumption being front-loaded during the policy window period, while infrastructure development and purchasing preferences among middle- and low-income groups may impact long-term growth trajectories. Nevertheless, automakers' accelerated local production initiatives (such as Proton e.MAS7's sales of 7,740 units) reflect the industry's sustained commitment to electrification.