- MemberNovember 7, 2021 at 10:10 am
Government intervention into economics can be in forms of regulations, taxes, subsidies, to monetary and fiscal policy that leads to many advantages to consumers or people. Few of the example advance will be improvement of people income and wealth, regulating fair competition among companies , sustainability of environment and many more. The most recent Malaysia government intervention is implementing full tax exemptions for zero-emission cars. This explains government takes serious on the sustainability of environmental that on same time change consumer behaviour to shift interest to EV vehicles. This is because the tax incentives helps reduce the vehicle price to more affordable.
Car manufacturers should take this government incentive as opportunity to improve production of EV vehicles that can boost the company revenue. According to UMW Toyota Motor Sdn Bhd, EV cars sold about 32 cars in 2019 which seen some improvement compare with 2018 with only 2 cars sold in total year but number is still a far cry from the volume in advanced markets. The reason due to the EV vehicle prices that way too high and may categories EV cars as luxury cars. Also since government give tax rebate for charging station, car manufacturer can start producing the charging station devices to consumer that can contribute to their revenue.