KUALA LUMPUR: BMW Group Malaysia is engaging with the government and preparing for locally-assembled (CKD) electric vehicles (EVs), aligning with the recent changes to tax exemptions post-2026 to ensure sustainable adoption.
BMW Group senior vice president sales region in Asia Pacific, Eastern Europe, Middle East and Africa Jean-Philippe Parain said this, however, requires long-term certainty and planning.
The government will reportedly phase out tax breaks on fully-built imported (CBU) EVs by end of 2025 and CKD models by end of 2027.
Parain said reducing subsidies can impact EV adoption, as seen in other markets. Hence, it is essential to approach the transition carefully.
"The group has flexibility in its global network. After more than 20 years of investing in Malaysia, we want to continue investing if the government's long-term direction and policy is clear. We will coordinate the steps after fully understanding the details.
"Investment in production and development is a long-term effort, so we need certainty that this policy will remain relevant for the future.
"BMW Group Malaysia is committed to working with the government and all stakeholders to ensure the transition to electromobility is carried out effectively and sustainably," he said.
Parain said EV adoption in Malaysia stood at 19 per cent in the first nine months of the year, higher than the regional average and comparable to the global average.
"While the adoption in some countries is slowing, Malaysia's growth remains steady. "Customers here still seek a variety of options, which is why we champion technological flexibility - offering plug-in hybrids, mild hybrids and fully electric vehicles to meet diverse needs," he said during the group's brand strategy media roundtable here today.
According to Parain, the transition to electrification involves adapting to infrastructure, market dynamics and customer preferences.
"We work closely with local partners and the government to build the charging ecosystem and facilitate this shift.
"For example, customers can enjoy the convenience of home charging with our wallbox solutions, which complement our growing fast-charging infrastructure nationwide," he said.
On its aim to make Malaysia a leader in automotive transformation in Southeast Asia, BMW Group Malaysia managing director Benjamin Nagel said the country's role as a strategic hub for the world's leading premium brand in Southeast Asia has been the main catalyst for its growth in the region.
He said it was proven through the group's assembly facility in collaboration with Sime Darby Bhd at Kulim Hi-Tech Park, Kedah and the regional component distribution centre in Senai, Johor.
"Our local assembly facility has shipped more than 10,000 vehicles to the Philippines and Thailand, making us the largest exporter of automotive vehicles in Malaysia.
"Next week, we will officially open the expanded facility in Senai that is currently supports 23 countries in the Asia Pacific region.
"With the additional 20,000 square metres, it will increase the space from 45,000 to 65,000 square metres," Nagel added.