Kuala lumpur: Malaysia's shift towards electric vehicles (EVs) is poised for acceleration as crude oil prices remain elevated, particularly impacting buyers in the premium internal combustion engine segment.

According to BERNAMA News Agency, this trend is expected to bolster EV penetration by 2026, aided by the introduction of the Proton e.MAS 5.

The firm highlighted that the continuation of tax incentives for completely knocked-down EVs is also contributing to this growth. Furthermore, CIMB Securities noted that the temporary adjustment to the BUDI95 monthly individual quota will likely have minimal impact on the national automotive segment. This is largely because most national models feature smaller engines with lower fuel consumption per 100 kilometres.

With private cars averaging an annual mileage of about 28,000 km, as per the Malaysia Institute of Road Safety Research, the estimated annual fuel consumption for the top five best-selling models-Perodua Bezza, Axia, Myvi, Alza, and Proton Saga-ranges from 1,100 to 1,500 litres. Even with increased real-world usage, CIMB Securities suggests there is enough buffer following the government's decision to adjust the BUDI95 quota.

In a recent address, Prime Minister Datuk Seri Anwar Ibrahim announced that starting April 1, the monthly individual limit for BUDI95 purchases will be temporarily reduced to 200 litres from the previous 300 litres, due to ongoing conflicts in West Asia. He assured that most citizens would remain unaffected, as the average usage is about 100 litres per month, with nearly 90 percent of consumers using less than 200 litres monthly.