Volvo Malaysia is eagerly awaiting details on the upcoming High-Value Goods Tax (HVGT). There is still a hope that the luxury tax will avoid hindering efforts to promote electric vehicle (EV) adoption in the country.
Managing director, Charles Frump, emphasized the need for incentives to encourage EV adoption, especially as EVs tend to fall within the premium and luxury segments. Frump noted that the current low petrol prices in Malaysia provide less motivation for consumers to switch to EVs.
The government announced the implementation of HVGT on November 2, 2023. The tax will apply to luxury items like private jets, yachts, jewelry, and high-end cars starting May 1, 2024. However, specific details, including tax rates and the application mechanism, are yet to be disclosed.
Malaysia presently offers various incentives for EVs, including exemptions on excise duty, sales tax, and import tax for locally assembled EV components until 2027.
Volvo Malaysia is optimistic about its EV segment’s performance in 2024, driven by the introduction of the Volvo EX30. In 2023, the fully electric (BEV) segment constituted 18 percent of total retail sales, marking a 37 percent year-on-year increase. The Recharge range, comprising BEVs and plug-in hybrids, represented 71 percent of its total retail sales. Volvo Car Malaysia sold 2,694 cars in 2023. A slight decrease from the 3,194 units in 2022.
Globally, Volvo Cars achieved a sales record of 708,716 cars in 2023. The company experienced a significant growth in sales of electrified cars, with a 70 percent increase in fully electric cars and a 10 percent increase in plug-in hybrid cars. Fully electric cars accounted for 16 percent of Volvo’s global sales in 2023.
Source: thestar.com.my
