Three weeks ago, a document snapshot, purportedly from Malaysia’s investment, trade and industry ministry (MITI), revealed that from January 1, 2026, all new CBU imported EVs from new brands yet to enter the Malaysian market must be priced from RM250k up, and their combined power must be at least 200 kW (272 PS).
That document states that this new minimum price (and power) hurdle does not affect brands and CBU EV models that are already in Malaysia, which means that those who are already here can fall back on the previous RM100k floor price.
However, we recently heard from industry sources that the new ruling has since been amended by MITI, and it now includes all new CBU EVs, regardless of whether the brand is already in Malaysia or not.
A check with MITI’s portal under the franchise AP section showed the change in wording from the previous ‘jenama’ (brand) to the current ‘jenama/model’. The RM250k minimum price fine print currently reads “tertakluk kepada jenama/model kenderaan baharu yang tidak pernah diluluskan di bawah mana-mana syarikat AP Francais sebelum ini“.
Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain confirmed the new government directive, and the subsequent change to widen the net. “The change was so abrupt, so we need a bit more clarification. We have not got any engagement yet,” he told the media at MAA’s 2025 review and 2026 outlook briefing yesterday.
“This is something new and we are also trying to clarify the situation. We need to have engagement with MITI to have a bit more in-depth understanding,” he added.
To give you some context, had this rule been implemented last year, popular CBU EVs like the BYD Atto 2 and Seal 6 would not have been allowed to go on sale because they don’t meet the 200 kW minimum power output. Meanwhile, models that are powerful enough – such as the Zeekr 7X, currently priced from RM180k – would have a sticker price of at least RM250k.
The auto industry was caught by surprise with this new ruling, which in revised form now impacts them in terms of EV model introduction. Businesses don’t like ad-hoc rule changes because introducing new models require forward planning, and the moving of goalposts, sometimes very late in the game, complicates matters.
“A lot of carmakers have already planned their production, their logistics and so on. Bringing in models for this year, some companies have to plan at least 12 to 24 months ahead, with homologation and other things – preparation would have been done a long time before this,” Mohd Shamsor pointed out. “Hopefully we’ll get some response when we do our engagement with the government,” he added.
So, as things stand, the minimum price for CBU imported EVs is RM250k, regardless of whether the brand is an existing player in Malaysia. The models also must have at least 200 kW (272 PS) of motor(s) power. Only CBU EVs that have been approved before December 31, 2025 can fall back on the previous RM100k floor price. The way around this is to CKD, which is of course what MITI is trying to push with these CBU hurdles.
Sounds simple, but mind you, the current policy only gives full tax-free status to CKD EVs until end-2027. Whether that’s a big enough window for car brands to decide if it’s worth investing in local assembly remains to be seen. Furthermore, for players already in Malaysia, the new-for-2026 5% import duty (for EVs imported from China, lower than the default 30%) and 10% excise duty for CBU EVs might be small enough for them to absorb while maintaining RRPs.
If MAA fails in its bid to convince MITI to relax its rules on CBU EVs, the ‘free for all’ EV era that we enjoyed over the past few years is officially over. Moving forward, we will not have so much variety, and could the steep growth trajectory in EV adoption (+109% in 2025 year-on-year) taper?
Still, there are no shortage of EV options – aside from Proton and Perodua, Volvo, Chery, Mercedes-Benz, BMW and TQ Wuling have local EV production. BYD is building a plant in Tg Malim and Stellantis will CKD Leapmotor EVs at Gurun. Then there’s EPMB contract manufacturing for Xpeng and MG, with room for more in Melaka. What do you think?
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Once again the Madanon administration leads the way in business-hostile policies that are protectionist and regressive. Their tax regime is already extremely business-hostile and stifles growth, but looks like they’re not done yet with destroying our economy and progress.
wawasan 2020 continues to upload local M dignity
if i were to invest money to build cars, just skip malaysia. go to Thailand or some where elsee which has a more transparent policy that is more stable. Our menteri menteri just started thinking about all these last night, and only think 2 weeks ahead.
RM250k floor price for CBU EVs? Then you guys can continue inhaling carbon monoxide from my ICE tailpipe for all I care
dont be so happy. later they impose similar restriction on ICE car also
The EVs are all big boys toys and not suitable for daily vehicle restricted by it’s limited range and hassle to charge for continuous use.
The only advantage of buying an EV will be for the performance vs price factor.
So it doesn’t really matter whatever minimum price its given.
It won’t replace the day to day car for us typical malaysians.
You obviously don’t own an EV for you to say that it cannot be a daily car
EVs are better as daily driver than ICE cars. Its the outstation travelling part that may be an issue if you buy a cheaper EV with lower range
“;it’s limited range and hassle to charge for continuous use.”
That was maybe somewhat accurate 3-4 years ago.
The tech is evolving fast. The mid tier EVs are getting 600km+ range, 800v architecture with equals 10% to 80% DC charging faster than i can take a dump.
What will hold back Msia is non competitive laws like this and whether anyone brings in updated DC chargers.
gomen will again force people to buy these local trash. The way is as usual, impose high tariff on non-national brands. Gee, thanks Proton and perodua.
Govt want to help selling the underwhelming Perodua EV.
That’s what we get when we have bangangs managing policies.
If goment is serious to encourage ckd of ev, they should give a longer tax break, instead of until 2027 only. Who want to spend billion to do ckd here without a clear policy and road map. Really cannot understand what is the direction.
Over protection is main reason why Our national cars cannot compete even with fellow asean cars. Nevr mind those from china.
Why is MITI protecting AP holders interest but not consumers interest?
How come tesla gets preferential treatment. Other brands should be treated equally.
Because tesla is self not like other brand who have dealer, that’s the point they can control their own money instead give money to dealer
Pls bring back Rafidah to be MITI minister
Aiyo it’s Mahatir administration all over again. Stifle the competition to help P1&P2. As it is both Ps are giving very very bare minimum specs for this day and age.
Our car market will continue to be retarded by some over protective people.
Here we go again…protectionism…no matter how you spin it…minister!
tongkat again…wawasan ckd protek useless cronies
Is there any benefit from P1 and P2? Their Export market is practically zero. In terms of contribution to Malaysian GDP they are insignificant. Why continue to punish Malaysian consumers
thats not corerct. proton , perodua, and all their vendor supplier dealer ecosystem combined, should be tens of billions. thats not insignificant.
Support this move. Cheap chinese cars are flooding the market without providing any long term benefit to Malaysia.
Meanwhile those who have set up shop here and contributing more to Malaysian economy are being punished. Its not about local cars only, its about local market which involves local ckd. The idea is simple. You want to sell here, you invest here.
sorry out of topic. now Madanon is worried that Mixue, Chagee n other foreign F&Bs opening too many branches in Mlysia
expect minimum rm30 price for a cup of coffee after this, to protect local F&Bs