Malaysia’s Ministry of Investment, Trade and Industry (Miti) applied a fresh amendment to its Franchise Approved Permit (AP) guidance that effectively raised the bar for new fully imported (CBU) EV models, with a minimum RM250,000 on-the-road price and at least 200kW of combined motor output.
Crucially, the latest wording widened the scope beyond “new brands” to include new brand/model combinations that have not previously been approved under any franchise AP holder, even if the marque is already present in Malaysia.
Existing carmakers could still sell current approved CBU EVs, but fresh model introductions faced the tougher thresholds.
That means CBU EVs approved before Dec 31, 2025 could revert to the earlier RM100,000 floor, rather than being forced up to RM250,000.
Miti’s updated requirements went beyond price and power. Imported EV models were also required to meet UNECE Regulation No. 100 Revision 3 (UNR100 v3) certification, and comply with MS ISO 17840 for standardised rescue sheets used by first and second responders.
On taxation, the Malaysian Automotive Association (MAA) on Wednesday said CBU EVs now faced 30% import duty, 10% excise duty and the standard 10% sales tax, while noting import duty could be lower for some origins depending on applicable trade agreements and origin documentation.
The policy comes as Malaysia posted a record 2025 total industry volume (TIV) of 820,752 units, with MAA forecasting a slowdown to 790,000 units for 2026; December 2025 marked a monthly high of 90,716 units.
What the latest thresholds do is that they would make mainstream CBU EV launches harder to justify on price, and therefore won’t be sold in Malaysia.
Several brands already assembled EVs locally, while others had been linked to CKD plans, suggesting the new rules are likely to accelerate car makers to start local assembly.
Among those already having local EV assembly operations are Chery, BMW, Mercedes-Benz, Volvo, and SAIC-GM-Wuling, being the latest to do so.
