Last updated: 27 May 2026
Malaysia’s EV market is entering a more restrictive phase.
From July 1, 2026, fully imported electric vehicles, better known as completely built-up (CBU) EVs, would face two main requirements before they can be brought into Malaysia through the franchise approved permit (AP) system.
The first is a minimum cost, insurance and freight (CIF) value of RM200,000. The second is a minimum motor output of 180 kW (245 PS).
The Ministry of Investment, Trade and Industry of Malaysia (Miti), now led by minister Datuk Seri Johari Abdul Ghani after his appointment in December 2025, said the revised conditions were communicated to franchise AP holders during an engagement session on April 30, 2026.
The language is dry, but the effect could be immediate: cheaper CBU EVs may become harder to justify, while CKD plans suddenly become more urgent.
What is changing?
Until the end of 2025, Malaysia had a special exemption period for imported CBU EVs under the franchise AP system. That helped bring in a wider spread of EVs, including models priced closer to mainstream petrol and hybrid cars.
That exemption ended on Dec 31, 2025. Miti said the CBU EV policy has since reverted to existing rules, although remaining stock, cars already at port and cars already in transit can still be sold under the previous special-exemption regulations until those units are cleared.
The new July 2026 rule does not simply set a showroom price. The RM200,000 figure refers to CIF value, which is the declared landed value of the car before local taxes, duties, distributor margins, dealer margins, registration costs and insurance.
That is the part many buyers may miss.
A RM200,000 CIF car is not a RM200,000 retail car. Once import duty, excise duty and sales and service tax are added, the final showroom price can move much higher. Note that effective import duty rates vary by origin (e.g., 5% import duty from China vs up to 30% from Europe).
This is why industry estimates have pointed to a possible effective entry price of around RM300,000 or more for many new CBU EVs after the new rules take effect, depending on the vehicle’s origin, duty treatment, margins and final pricing decision.
What was the earlier RM250,000 rule?
The policy path has not been easy to follow.
Miti’s December 2025 franchise AP policy document stated that EV passenger cars from new vehicle brands not previously approved under any franchise AP company would need to have a minimum motor output of 200 kW (272 PS) and an on-the-road price above RM250,000 from Jan 1, 2026.
The July 2026 update changes the basis of the rule. Instead of an OTR minimum of RM250,000 and a 200 kW (272 PS) threshold, the latest confirmed condition is a RM200,000 minimum CIF value and 180 kW (245 PS) minimum output.
That may look softer because the power requirement is lower. The bigger issue is the CIF floor. A RM200,000 landed value before taxes is high enough to push many mainstream imported EVs out of today’s affordable price bands.
Why is Miti doing this?
Miti has positioned the policy as part of a broader move to support a balanced automotive industry and protect Malaysia’s economic interests after the end of the special CBU EV exemption period.
In plain language, the government appears to want more EV brands to move from simple importation to local assembly.
That fits with Malaysia’s wider automotive strategy. CBU imports can test demand quickly, but they do not create as much local industrial activity as completely knocked down (CKD) assembly. CKD programmes can involve local plants, vendor development, paint shops, logistics, workforce training and longer-term commitments from carmakers.
The trade-off is obvious. CKD can deepen Malaysia’s EV industry. But if the CBU route becomes too expensive too quickly, buyers may lose access to many imported EV choices before enough locally assembled alternatives are available.
What does this mean for buyers?
For buyers, the immediate issue is choice.
Malaysia’s EV market grew partly because CBU imports made it possible for brands to bring in cars quickly. That created competition in the RM100,000 to RM200,000 space, especially from Chinese brands. Buyers could compare models on range, charging speed, warranty, cabin space and software without waiting years for local assembly.
The new rule could narrow that field.
Imported EVs below the likely RM300,000 zone may become harder to justify unless the cars are already in stock, already approved under earlier terms, or brought in through a different permitted route. Models that do not meet the 180 kW (245 PS) output requirement would also face a direct technical barrier.
This is awkward because many sensible city and family EVs do not need 180 kW (245 PS). A small or compact EV can be perfectly usable with much less power, especially for urban drivers.
For the buyer, that could mean fewer affordable imports, more pressure to buy existing stock before rules tighten, and a stronger shift towards CKD EVs.
Some real-world examples
The power rule is easier to understand when matched against cars already familiar to Malaysian buyers.
A BYD Dolphin, for example, is listed by BYD Malaysia with outputs from 70 kW (95 PS) to 150 kW (204 PS), depending on variant, while the BYD Atto 2 is rated at 130 kW (177 PS). All are below the 180 kW (245 PS) threshold.
That does not automatically tell us how every import approval would be treated, because Cost, Insurance and Freight (CIF) value is not the same as retail price and is not usually disclosed to the public. But it shows the kind of compact, lower-powered EV that would run into the new output rule if brought in as a fresh CBU import under the July 2026 conditions.
The XPeng G6 is in a different position. For the current New XPeng G6 range, XPeng Malaysia lists the RWD Standard Range at 185 kW (252 PS), the RWD Long Range at 218 kW (296 PS), and the AWD Performance at a combined 358 kW (487 PS). All clear the 180 kW (245 PS) threshold on power, although the separate RM200,000 CIF condition would still depend on import documentation rather than showroom pricing.
A simple hypothetical case makes the issue clearer. A compact EV with 150 kW (204 PS) and a RM140,000 CIF value would fail both conditions. It would fall short of the 180 kW (245 PS) output rule and sit below the RM200,000 CIF floor.
A larger or more premium EV with 220 kW (299 PS) and a RM210,000 CIF value would clear both thresholds, before taxes and margins push the eventual retail price much higher.
Which brands could be affected?
The rule affects the import path rather than one particular badge. Any brand relying heavily on CBU EVs would need to study whether future models meet the CIF and output requirements.
This is especially relevant for brands using imported models to build presence before moving into local assembly. Existing CBU stock may still have breathing room if those cars fall within Miti’s remaining-stock allowance. Future import planning is a different question.
For Chinese EV brands, the challenge is not only regulatory. Many have built their overseas growth around aggressive CBU pricing, fast product cycles and strong equipment levels. A higher import threshold reduces that flexibility.
For premium brands, the impact may be less painful. A luxury EV already priced above RM300,000 and producing more than 180 kW (245 PS) may fit the new structure more easily. In that sense, the rule could make imported EVs more premium-heavy while pushing mass-market EVs toward CKD.
Does this protect Proton and Perodua?
It is fair to say the policy gives more room to locally assembled or locally backed EV programmes. It would be harder to say that this is only about one or two national brands.
Still, the market effect is clear. If affordable imported EVs face a higher barrier, locally assembled EVs gain more breathing space.
That could help brands investing in Malaysia. It could also reduce price pressure. For buyers, that cuts both ways. Local assembly may bring better long-term support, parts supply and more stable after-sales networks. But with fewer CBU rivals in the market, buyers may see fewer value-driven offers.
This is the core tension in the policy: Malaysia wants EV investment, but buyers want choice and affordability now.
What remains unclear?
Several points still need watching.
The first is how strictly Miti would apply the July 2026 conditions across different import cases, especially for models previously approved, cars ordered before the cut-off, and future variants of existing nameplates.
The second is how long remaining stock can continue to be sold under previous terms. Miti said unsold units, port stock and vehicles already in transit can still be cleared under the earlier exemption terms until those units run out, but buyers would still need to check the status of individual cars with dealers.
The third is CKD timing. A policy that pushes brands toward local assembly only works smoothly if CKD programmes arrive quickly and with competitive prices. If there is a gap, buyers may simply face a smaller EV market.
TienCars view
The policy is understandable from an industrial point of view. Malaysia does not want to be a dumping ground for imported EVs. Local assembly, supply-chain development and real investment are valid goals.
But the timing and structure are tough for buyers.
A RM200,000 CIF floor is not the same as a RM200,000 retail price. After duties, SST and business margins are added, that RM200,000 value can turn into a much higher showroom price.
The 180 kW (245 PS) power threshold is also hard to square with affordable EV ownership. A sensible city or family EV does not need to be that powerful.
A better outcome would be a clearer transition path: enough time for brands to localise, enough transparency for buyers, and enough competition to prevent EVs from becoming a premium-only game again.
That is broadly in line with the Malaysian Automotive Association’s (MAA) position. MAA has supported Miti’s updated CBU EV policy, but has urged the government to introduce the changes in stages so the industry has more time to adjust.
For buyers, the bigger question is whether the transition can happen without thinning the affordable EV market too quickly.
TienCars will be watching whether brands can localise fast enough to keep that window open, or whether buyers face a leaner, pricier market before the next generation of Malaysian-assembled EVs arrives.
