Malaysia’s EV Adoption May Accelerate On Firmer Crude Oil Prices -- CIMB Securities

KUALA LUMPUR, March 27 (Bernama) -- Malaysia’s transition towards electric vehicles (EVs) could accelerate due to elevated crude oil prices, particularly among buyers in the premium internal combustion engine segment, according to CIMB Securities Sdn Bhd.

In a note today, the research firm said it expects national EV penetration to increase in 2026, supported by the launch of Proton e.MAS 5.

“The growth was further supported by the continuation of tax incentives for completely knocked-down EVs,” it said.

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Meanwhile, CIMB Securities said the temporary adjustment to the BUDI95 monthly individual quota will have a limited impact on the national segment, as most national models are equipped with smaller engines and have lower fuel consumption per 100 kilometres (km).

“With an average annual mileage of around 28,000 km for private cars (per Malaysia Institute of Road Safety Research estimates) and following Malaysia’s top five best-selling models in 2025, namely the Perodua Bezza, Axia, Myvi, Alza, and Proton Saga, we estimate annual fuel consumption ranges between 1,100 litres and 1,500 litres.

“Even allowing for higher real‑world usage, this suggests sufficient buffer following the government’s decision to adjust the BUDI95 quota,” said CIMB Securities.

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Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, in his special address, announced that, effective April 1, the individual monthly limit for the purchase of BUDI95 will be temporarily adjusted to 200 litres per month from 300 litres per month previously, due to the ongoing conflict in West Asia.

He said a majority of the rakyat are not affected by the quota reduction, as consumers, on average, use about 100 litres per month, and nearly 90 per cent consume less than 200 litres per month.

-- BERNAMA