Electric cars in Malaysia: real costs, savings and what no one tells you

Lifestyle

From EV insurance and charging costs to incentives and hidden savings, here’s what Malaysians really need to know before switching to an electric car.

December 30, 2025
by
Farah Mustafa

Petrol prices go up. Traffic gets worse. And suddenly, electric cars are everywhere — in malls, on highways, even in your neighbourhood.

But before making the switch, most Malaysians ask the same thing: Are electric cars actually cheaper, or is it just hype? From insurance and charging costs to maintenance and road tax, EV ownership comes with a lot of assumptions — and not all of them are true.

Here’s a clear, no-fluff look at what owning an electric car in Malaysia really costs, and whether going electric makes sense for you.

Have you seen the latest Proton e.mas 5 yet?

Is EV insurance expensive in Malaysia?💸

Short answer: slightly — but the gap is getting smaller.

In Malaysia, EV insurance premiums typically range from RM1,800 to RM2,300 per year, depending on vehicle value and coverage.

For similar petrol (ICE) cars, insurance usually falls between RM1,200 and RM1,700 annually.

Why EV insurance costs more

  • Battery packs are costly to repair or replace
  • EVs require specialised technicians
  • Fewer EV-certified workshops (for now)

What’s changing

As EV adoption grows, insurers are rolling out EV-specific policies and local servicing support is expanding. For more affordable EVs, the insurance difference is now often a few hundred ringgit per year, not thousands.

Bottom line: EV insurance is slightly higher today, but it’s no longer a major barrier.

The real reason EVs can still save you money ⚖️

Insurance is just one part of the picture. To really compare EVs and petrol cars, you need to look at total ownership costs.

1. Charging vs petrol costs

Petrol carsElectric cars
Average monthly costRM300-RM500RM100-RM150
Annual fuel costRM3,600-RM6,000RM1,200-RM1,800

Even with a mix of home and public charging, EV drivers typically spend less than half of what petrol drivers do.

Estimated annual savings:
👉 RM2,000–RM4,000

2. Road tax savings

EV road tax in Malaysia is waived until the end of 2025, saving owners hundreds of ringgit each year.

From 2026, road tax is expected to return under a revised, EV-friendly structure. While final rates have yet to be confirmed, estimates suggest annual EV road tax could range from under RM100 to a few hundred ringgit, depending on vehicle specifications.

Figures are indicative and subject to government confirmation.

Even then, EV road tax is expected to remain more affordable than petrol car road tax, especially for smaller and mid-range EVs.

3. Maintenance costs

One of the biggest long-term differences between electric and petrol cars is how much maintenance they actually need.

Maintenance itemPetrol carsElectric cars
Engine oil and filterRegular changes requiredNot required
Spark plugs and beltsRequiredNot required
Gearbox and exhaust partsWear over timeNot applicable
Break wearHigher (engine braking less common)Lower (regenerative braking)
Overall servicing frequencyFrequentLess frequent
Estimated annual maintenance costRM1,000 - RM2,000RM300 - RM800

What this means for owners: With fewer moving parts and simpler mechanics, EVs typically require less servicing and lower maintenance spend over time. For daily drivers, these savings can add up to thousands of ringgit across several years.

4. Battery technology has improved

Modern EV batteries are designed to last:

  • 8–10 years of usable lifespan
  • Gradual degradation rather than sudden failure

For most owners, battery replacement is unlikely during normal ownership, especially with improved battery management systems and warranty coverage.

A simple EV savings check (no calculator needed) 💡

Not sure if an EV will actually save you money? Try this easy, real-world comparison.

Cost categoryPetrol carElectric car
Fuel/chargingRM4,800RM1,500
MaintenenceRM1,500RM600
Road taxRM300RM100-RM300 (estimated)
InsuranceRM1,500RM2,100
Estimated total per year~RM8,100~RM4,300-RM4,500

👉 Estimated annual difference: ~RM3,000–RM3,800 in favour of EVs

EV road tax figures for 2026 are indicative estimates based on proposed capacity-based structures and are subject to official government confirmation. Actual costs may vary depending on vehicle specifications and usage.

EV vs petrol cars: what really changes?

Beyond costs, EV ownership feels different:

  • Quieter, smoother driving
  • App-based navigation and charging
  • Real-time battery monitoring
  • Software updates instead of workshop visits

In short, EVs are digital-first vehicles, not just mechanical ones.

And if you've decided to get that EV car... you have to get this mobile plan too!

CelcomDigi One™ — built for EV lifestyles

From using Waze or Google Maps to locate chargers via PlugShare, EV drivers depend on reliable mobile data and home internet. Stable connectivity is also essential for smart chargers, vehicle updates and EV management apps.

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✅ High-speed home internet for smart charging and software updates
✅ Multiple lines for family members or connected devices
✅ One simple bill for mobile and home connectivity

In an EV world that runs on apps, maps, and real-time updates — seamless connectivity isn’t optional, it’s essential.

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Electric cars aren’t a “one day” idea anymore — they’re already changing how Malaysians drive. With lower running costs, better charging access and smarter technology, going electric is becoming an everyday choice.

While things like insurance and charging habits still matter, the long-term savings and experience make EVs hard to ignore. And as cars become more connected and app-driven, reliable connectivity becomes part of the journey.

With CelcomDigi One™, drivers can stay connected at home and on the road — ready for every route, update and charge.

The electric future? It’s already plugged in.