Is Switching to an Electric Vehicle Worth It in Malaysia?

One of the most compelling financial advantages of EVs is the cost of “fuel.” Even under Malaysia’s subsidised petrol regime, electricity is generally cheaper per kilometre.

Cost Per Kilometre (approximate)

• Petrol (RON95) at ~RM2.05/L: If a petrol car averages ~14 km per litre, the running cost is ~RM0.15 per km.
• EV charging at home (~RM0.57/kWh): With an efficiency of ~5.67 km per kWh, EV cost is ~RM0.10 per km.
• Public Fast Charging (RM1.00 to RM1.50/kWh): Cost per km rises to ~RM0.18–RM0.26, potentially matching or exceeding petrol costs. 

Note: Pricing is based on market rate in January 2026.

EVs have significantly fewer mechanical components; no oil changes, spark plugs, or exhaust systems: which translates to lower servicing costs.

• Petrol vehicles may incur RM3,000–RM4,000 in servicing over five years.
• EVs generally cost substantially less in routine maintenance thanks to simpler drivetrains. 

Malaysia currently provides several incentives to offset EV costs:

• Import & Excise Duty Exemptions: Lowers EV sticker prices relative to imported petrol cars.
• Income Tax Relief (up to RM2,500): For at-home charger installation.

However:

• No petrol subsidy equivalent exists for EV owners; EVs are not eligible for BUDI95 petrol rebates.

Road tax shifted to a kW-based system in 2026, still generally lower than petrol equivalents. 

Key Inputs for 2026:

• Petrol (RON95): subsidised price for Malaysian citizens remains RM1.99 per litre (annual quota applies) as of early 2026.
• Electricity for Home Charging: average residential tariff around RM0.45–RM0.57 per kWh (all-in mid-2025 tariff rate).
• EV Road Tax (2026): new kW-based system applies from 2026, typically RM100–RM200 per year for common EVs under ~150 kW, depending on motor size. 

Assumptions:

• Annual driving distance: 20,000 km
• Petrol car average fuel consumption: 14 km per litre
• EV average efficiency: 5.67 km per kWh
• Home EV charger installation (one-off): RM5,000

• Electricity Price Increases

If domestic tariffs rise (e.g., to ~RM0.65/kWh), EV cost per km still generally remains lower than petrol, especially if petrol subsidy is removed. 

• Charging Behaviour

Home charging: greatest savings potential.

Public DC charging: convenience but higher cost per km. 

• Battery Costs & Longevity

Battery degradation and potential replacement costs remain considerations, though battery longevity continues to improve. 

• Value Trends

As EV demand grows, desirable models (especially with long range and good battery health) can maintain strong resale values. However, some EVs have had steep depreciation depending on model and battery age. Rapid tech advancement means older models can lose value faster.