Malaysia's Deputy Investment, Trade and Industry Minister Sim Tze Tzin has clarified that the reimposition of import duties on completely built-up (CBU) electric vehicles (EVs) from July will not make all EVs more expensive. The government's focus on completely knocked-down (CKD) models ensures affordability, with locally assembled EVs remaining within the RM100,000 to RM200,000 price range. The policy aims to strengthen the domestic automotive industry and reduce reliance on imports.
Malaysia 's Deputy Investment, Trade and Industry Minister Sim Tze Tzin has clarified that the reimposition of import duties on completely built-up (CBU) electric vehicles (EVs) from July will not make all EVs more expensive, contrary to recent claims.
He emphasized that consumers will still have access to a wide range of reasonably priced EVs through completely knocked-down (CKD) models, ensuring affordability within the RM100,000 to RM200,000 price range. Sim highlighted that the CKD strategy is part of Malaysia's broader effort to localize the automotive industry, reducing reliance on imported CBU EVs and fostering domestic manufacturing. The minister noted that premium imported EV models, particularly luxury brands with insufficient sales volume for local assembly, will see price increases.
However, locally assembled EVs such as the Proton e. MAS, Perodua’s QV-E, and Chery, along with upcoming Chinese brands like Zeekr, will continue to offer affordable options. Sim also addressed the national automotive policy, which remains focused on developing the domestic value chain. The reimposition of import duties, sales tax, and excise duties on CBU EVs is not a new tax but a return to the original tax structure after the expiry of a four-year incentive period.
The policy encourages local assembly and CKD operations to create jobs and stimulate economic growth. Previously, Miti announced that imported CBU EVs would be subject to new conditions starting July 1, including a revised minimum motor power requirement of 180kW and a minimum cost, insurance, and freight (CIF) value of RM200,000. These measures aim to promote local manufacturing and reduce dependence on imports, aligning with Malaysia's long-term industrial goals
Malaysia Electric Vehicles Import Duties Automotive Industry Local Assembly
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