Affordable EVs, Government incentives fuel growth of electric passenger cars, autodealers say

The introduction of affordable electric vehicles and the Government incentives to purchase such vehicles are two main reasons given by two of Malta’s largest autodealers for the growth seen in the number of electric passenger cars on Maltese roads.

MaltaCEOs.mt spoke to the CEO of GazanZammit, Stefan Deguara, and Director at Mizzi Motors, Ian Mizzi, for some insight into the electric vehicle sector.

National Statistics Office data recently showed that while the total number of licensed purely petrol-engine passenger cars vastly outnumbers all other engine types combined, the number of electric passenger cars on Maltese roads is growing at a higher rate on a yearly basis than purely petrol-engine passenger cars.

This comes at a time when budget EVs are in the market. Indeed some of the country’s largest car dealerships are in direct competition, each using Government electric vehicle (EV) and scrappage grants to drive prices down.

Mr Deguara said that the transition to electric mobility is advancing rapidly across many developed markets, driven by both local and EU policy objectives aimed at accelerating electrification.

“Development in technology, mobility or otherwise, tends to move towards a decrease in cost, likewise the introduction of more affordable EV models has made the technology accessible to a broader segment of consumers. These vehicles offer increased value for money, excellent quality and are particularly well suited to the Maltese market, where vehicles are generally smaller and daily driving distances are relatively short."

"Development in technology, mobility or otherwise, tends to move towards a decrease in cost. Likewise, the introduction of more affordable EV models has made the technology accessible to a broader segment of consumers," including those who may have previously considered EVs beyond their budget, he said.

"As a result, we are seeing electric vehicles move from being a niche product to a mainstream consideration for many buyers,” Mr Deguara said, adding his belief that the shift towards cleaner technologies should keep being encouraged.

While explaining that EV registrations in the passenger car market has grown over the years, Mr Mizzi said: “It is thought that the main driver for EVs is the Government incentives and low cost EVs from China.”

If the Government incentive were to be removed, it is likely that sale of EVs would slump, he went on to say. “However, the low price of Chinese EVs remains attractive.”

Both Mr Mizzi and Mr Deguara highlight the impact of charging station infrastructure.

“The lack of public on street charging points remains a hurdle and could deter the public from purchasing an EV,” Mr Mizzi states.

It was reported in 2025 that there were only a total of 378 public charging points in Malta.

A robust and accessible charging infrastructure remains an important factor in sustaining the continued growth of EV adoption, Mr Deguara said. “While the expansion of public charging points has not always kept pace with the growth in EV ownership, consumer confidence has increased as the technology has matured, vehicle ranges have improved, and a wider selection of models has become available at increasingly competitive price points,” he said.

Plug-in hybrids

In the past, the Maltese Government used to also offer a grant for plug-in hybrids. However in 2022 that effectively stopped.

Both companies were asked whether they have seen a drop in demand for plug-in hybrids since the grant concluded.

“Hybrid vehicles remain a sensible option for those who plan to travel outside Malta. Although the incentive for these vehicles was removed, they remain popular,” Mr Mizzi wrote.

Meanwhile, Mr Deguara said: “The transition towards fully electric vehicles has naturally had an impact on demand for alternative powertrains, including plug-in hybrids. However, plug-in hybrids continue to play an important role in the market, particularly for customers who are not yet ready to make a complete switch to an EV or whose usage patterns make a hybrid solution more practical.”