Symbolic imageImage: BYDThe Ministry of Investment, Trade and Industry (MITI) on Wednesday announced that starting July 1, 2026, it will allow franchise approved permit (AP) holders to import only those EVs in Completely Built-Up (CBU) form that have a minimum Cost, Insurance, and Freight (CIF) value of 200,000 ringgit (about 43,000 euros) and feature a powertrain with an output of at least 180 kW. MITI informed franchise AP-holding companies of this decision on 30 April.To accelerate early EV adoption, the Malaysian government earlier allowed companies to import at concessional duty rates provided they met certain conditions. In October 2021, it announced that it would fully exempt CBU EVs priced at 100,000 ringgit (21,600 euros) or higher from import and excise duties between 2022 and 2023. It extended the concessions twice, first until the end of 2024 and then until the end of 2025.From January 2026, Malaysia re-imposed import and excise duties on CBU EVs and set the floor price at 250,000 ringgit (€54,000). Like the 100,000 ringgit figure mentioned above, this threshold referred to the selling price rather than the CIF value. From July 2026, although the threshold applicable will be lower at 200,000 ringgit, it will instead be based on the CIF value.After accounting for taxes and duties as well as distributor and dealer margins, the selling price could rise to 300,000 ringgit (65,000 euros) or higher, potentially restricting the entry of more lower-priced CBU EVs into the market. Under the new valuation structure, CBU EVs imported from countries other than China will likely bear the brunt.Being a member of ASEAN, Malaysia imposes an import duty of just 5 per cent on CBU EVs imported from China owing to the bloc’s free trade agreement with the country. CBU EVs made in European countries or South Korea, on the other hand, are subject to a 30 per cent import duty. Malaysia has provided a marginal relaxation in the minimum power output requirement, though. Currently, it requires CBU EVs to have powertrains with an output of at least 200 kW.miti.gov.my (in Malay), paultan.org
+35 others
