Zeekr, Xpeng and MG are among the Chinese carmakers starting local assembly of EVs in Malaysia to continue to enjoy tax-free incentives, now reserved for CKD EVs, says the Ministry of Investment, Trade and Industry (MITI). This follows the expiration of blanket tax-free incentives for CBU imported EVs at the end of 2025. The CKD products of the Chinese OEMs will continue to enjoy full tax exemption that applies to locally assembled EVs until December 31, 2027. The ministry was replying to a question from senator Datuk Mustafa Musa, who asked about the investment of Chinese EV companies and the new floor price for CBU EVs, which is now RM250,000, up from the previous RM100,000. On that, MITI said that the floor price change ‘to the original RM250,000 structure’ was appropriate to ensure a clearer transition from CBU imports to local assembly. It’s also done to protect investments made by national companies and local vendors. “In addition, the domestic EV ecosystem will continue to grow sustainably, and high-skilled job opportunities in the country can be created and preserved,” MITI added. We’ve reported on the CKD plans of the three brands mentioned by MITI, so here’s a recap. Two days ago, we were in Melaka for the line-off ceremony of the CKD MG S5 EV, which makes the SAIC Motor brand the first off the blocks. The S5 EV rolls off the line at EPMB’s Pegoh, Melaka plant, which will also assemble Xpeng’s G6, X9 and X9 PowerX REEV models. Production is scheduled to start at the end of this month. Zeekr’s CKD work will not happen at this burgeoning ‘Chinese CKD hub’ as the premium brand is under Geely, which is a main mover of the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, anchored by Proton. Malaysia will be the first country outside of China to assemble Zeekr vehicles in a global expansion plan, and the first model is the 7X SUV. Click on the links for more details. We understand the logic behind the RM250k floor price, but it shuts an interesting window in the Malaysian automotive industry where EVs in all shapes and sizes came in tax-free. It also means that EVs that are unlikely candidates for CKD (due to low volume), such as the Honda Super-One pictured above, are no-gos if they aren’t expensive cars to begin with. While the Super-One is a cool and fun-to-drive EV, no one would pay RM250k for a tiny box. We understand that Honda Malaysia had plans for the Japan-made EV, and it would’ve been a nice toy for half that price, but alas. Compare prices between different insurer providers to save the most on your car insurance renewal compared to other competing services. Many payment method supported and you can pay with instalment using Atome, Grab PayLater or Shopee SPayLater.