Malaysia ends exemption policy for imported electric vehicles and raises vehicle import threshold

Kuala Lumpur, May 6 (Xinhua) - According to a report by the Malaysian news agency, the Ministry of Investment, Trade and Industry (MITI) announced that the four-year special exemption policy for imported electric vehicles (CBUs) under the FranchiseAP framework has officially expired and terminated on December 31, 2025.

Starting from July 1, 2026, all newly imported CBU electric vehicles applying for franchise approval must meet two new conditions: firstly, the minimum motor power requirement will be reduced from the previous 200 kW to 180 kW or above; Secondly, the CIF price of the vehicle (including cost, insurance, and ocean freight) shall not be less than 200000 ringgit (approximately 50000 US dollars).

The CIF price does not equal the terminal retail price. With the withdrawal of relevant tax incentives, it is widely expected in the industry that the terminal retail price of most CBU pure imported electric vehicles that meet the new entry conditions may climb to over 300000 ringgit (approximately 75300 US dollars).

Analysis shows that the Malaysian government is gradually shifting its focus on electric vehicle policies from expanding the market and increasing popularity in the early stages to promoting industry localization. By raising the threshold for pure imported CBU electric vehicles, it is guiding car companies to establish local assembly plants and supply chain systems in Malaysia, driving local manufacturing and industrial ecosystem construction.