The government’s announcement in the 2022 budget on the giving of incentives to electric vehicle (EV) owners does not mean that the price of such cars will drop to the point that they become affordable for all segments of society, experts in the automotive industry say.
Speaking to MalaysiaNow, they said while prices might go down, they would still top hundreds of thousands of ringgit, making EVs accessible only to the rich.
They also said that the government’s intention in announcing the incentives was to help industry players given the lacklustre sale of EVs in the country.
Chips Yap said the new technology used in the production of EVs is what makes them more expensive than traditional cars which run on fuel.
He said car manufacturers have spent billions of ringgit on research and development and are still unable to raise investment capital.
“It’s not the