Malaysia has taken a major step forward in its electric vehicle ambitions with the official opening of Proton's first dedicated EV-manufacturing facility. The plant launch represents a pivotal moment for both the automotive manufacturer and the country's broader electrification goals.
Located in Perak state's Automotive High-Tech Valley, the newly commissioned facility brings cutting-edge EV-production capabilities to Malaysia's established automotive corridor. The plant opens with capacity to produce 20,000 electric vehicles annually, though officials indicate this could scale up to 45,000 units as market demand increases.
The facility's first model rolling off the production line is the e.MAS 7, an electric SUV that carries the distinction of being Malaysia's inaugural domestically branded electric vehicle. Following closely will be the e.MAS 5, designed as an accessible entry point into electric mobility. The e.MAS brand itself was introduced in July 2024, with its name symbolising "Electrifying Malaysia".
The venture showcases the deepening automotive collaboration between Malaysia and China. While Malaysian conglomerate DRB HICOM holds majority control of Proton, Chinese automotive powerhouse Zhejiang Geely Holding maintains a significant 49.9% ownership stake. This partnership has been crucial in transferring advanced EV technology and manufacturing expertise to Malaysia.
Prime Minister Anwar Ibrahim, who presided over the facility's launch ceremony, highlighted the strategic importance of this collaboration. He specifically called on Geely to expand its Malaysian operations beyond manufacturing, envisioning the development of comprehensive training and educational centres that could serve the broader region.
The plant opening coincides with Malaysia's ambitious electric vehicle roadmap. Current government targets call for EVs to capture 20% of new vehicle sales by 2030, a dramatic increase from the present 5.11% market share recorded in September 2024.
The country's long-term vision is even more ambitious, projecting that electric vehicles will account for 15% of total automotive industry volume by 2030, ultimately reaching 80% by 2050. Industry analysts forecast that the Malaysian EV market will generate MYR 1.2 billion in revenue by 2029, with projected annual sales of 16,520 units.
To accelerate adoption, Malaysian authorities have deployed a comprehensive incentive structure. Consumers benefit from eliminated import duties, excise taxes and sales taxes on electric vehicle purchases. The government also provides RM2,500 in annual tax relief through 2027 for EV-charging infrastructure investments, including equipment installation, rental agreements and subscription services. Additional incentives worth up to RM2,400 target various aspects of electric vehicle adoption.
The launch event also marked the formalisation of agreements with 17 initial Proton EV dealerships. The company has opened applications for additional dealers and aims to establish 30 retail outlets by 2025, laying the groundwork for comprehensive market coverage as production ramps up.
Malaysia's EV push enters an increasingly competitive South-East Asian landscape where established players like BYD and Tesla have already established a significant market presence. However, the country's combination of existing automotive manufacturing expertise, strategic Chinese partnerships and government support positions it favours to capture substantial regional market share.
The successful commissioning of Proton's electric vehicle facility represents more than a single company's achievement—it signals Malaysia's serious commitment to sustainable transport and advanced manufacturing.
As the country works toward its 2030 electrification targets, this facility serves as both a practical production asset and a symbol of Malaysia's determination to lead South-East Asia's electric vehicle transformation.
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