Mercedes-Benz Malaysia presents four EQ models to Tengku Zafrul on behalf of MITI

Late last week, Mercedes-Benz Malaysia made a somewhat unexpected move by presenting four brand new units of various models from its EQ range of battery-electric vehicles to Datuk Seri Tengku Zafrul Tengku Abdul Aziz on behalf of the Ministry of Investment, Trade, and Industry, of which he is the head.

The vehicles included in the handover were the flagship (and locally assembled) EQS 500 4Matic limousine, EQS 580 4Matic SUV, Mercedes-AMG EQS 53 4Matic+, and the EQE 500 4Matic SUV. Not much else is known about the exchange, but presumably the cars will remain undefinitely under the care of the Ministry's staff.

According to post by Mercedes-Benz Malaysia, these vehicles are aimed to provide the Ministry and its agencies with an “an opportunity to experience the luxury and electric technology of Mercedes-Benz” as part of the country’s broader “Push for Net Zero” mission under Malaysia’s New Industrial Master Plan 2030 (NIMP 2030).

Amanda Zhang, CEO and President of Mercedes-Benz Malaysia, highlighted the company’s ambitious sustainability goals: “Staying true to our strategy and commitment, Mercedes-Benz has launched the largest BEV portfolio of 9 models across all our existing vehicle segments including 2 all-electric Mercedes-AMG models,”

“This aligns with the government’s aspiration to achieve net-zero carbon emission by 2050, as outlined in the 12th Malaysia Plan. We are confident that with the full support from our stakeholders, we will not only contribute to a cleaner environment but also drive economic growth within the industry. We will create the preconditions for a CO2-neutral new car fleet by 2039, while the pace of transformation is determined by market conditions and the needs of our customers” Zhang stated.

In the past few years, Malaysia has been proactive in encouraging the adoption of electric vehicles. Since the tail end of 2022, fully imported (CBU) EVs are exempt from import and excise duties until December 31, 2025 while locally assembled (CKD) EVs enjoy an even longer relief from these exemptions until December 31, 2027.

These tax incentives are engineered to make EVs a more popular option among car buyers, albeit artificially, thereby accelerating the shift towards electric vehicle transportation and away from internal combustion.

Moreover, the newly revised road tax structure for electric vehicles, announced by the Transport Minister earlier this year, offers a financial advantage for EV owners as they are tiered according to an EV’s total power output. This revised structure is generally more economical compared to the road tax for internal combustion engine (ICE) vehicles, which are still antiquatedly tied to engine displacement.