Plug-in hybrids in Malaysia

Malaysia has always been slow when it comes to getting the latest models from all car makers. This is no different for plug-in hybrids. The good thing about the plug-in hybrids is that if the car is assembled locally it will qualify for tax exemptions under the EEV scheme that the Government introduced. So far only a handful of cars have benefitted from this. Mercedes introduced the E300 Diesel Hybrid which was significantly cheaper due to the tax exemptions. Seeing this example Volvo and BMW also jump on the bandwagon introduced their locally assembled hybrids.

Volvo was the first company in Malaysia to introduce the plug-in system with its XC90 hybrid. After localisation the price of the car was slashed by about RM50,000 which is a decent discount. BMW was the next to follow with the recent introduction of the X5 plug-in hybrid priced at a very attractive RM388k which is almost RM190k cheaper than if the car was imported directly from Germany. With such big savings it is no surprise that within one week of the launch there has been more than 500 units sold!

Volvo is pushing hard with their plug-in hybrids and aim to introduce many more models to capitalise on this. Price is very sensitive in Malaysia especially since the taxes on cars are so high, all car makers want to find a way to reduce the taxes and bring down car prices. The earlier incentives for EEV vehicles 3 years ago was a success and there was a sudden surge in sales of hybrids but when that incentive was stopped the sales of hybrids literally dried up overnight. Now that the incentive is given only for locally assembled hybrids car makers are relooking at this.

It is rumoured that Mercedes will introduce the C350 plug-in hybrid in 2017. This will be a major boost for Mercedes since it will be the first company to introduce a plug-in hybrid sedan rather than a SUV.

Electric cars so far have not enjoyed much popularity due to the high prices and lack of charging points. Until the time where the infrastructure is there to support electric cars it is unlikely that we will see many electric cars on the roads.