Once again, just as the finish line is in sight, it is reported that the Ministry of Investment, Trade and Industry (MITI) has shifted the goalposts for fully-imported (CBU) battery electric vehicles (BEV) in Malaysia, as a new ruling starting 1 July 2026 will effectively price them from RM 300,000 and above. This will virtually
MITI’s stance on the topic is akin to parkour, jumping from one ruling to another. This will be at least the third time MITI has made a change on the CBU BEV policy.
The report by PaulTan.org marks the two new issues that would wipe out the mid-range CBU BEV segment. This would affect most, if not all, CBU BEVs here as they relay on the Franchise AP too import cars.
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First up is a declared cost, insurance and freight (CIF) value of no less than RM 200,000. Second is a minimum power output of 180 kW (245 PS).
Although the CIF has a minimum value of RM 200,000, that figure is merely the cost of the vehicle plus the insurance getting it here and the price of freight. It does not include the taxes that will be tacked on as well as the manufacturers and other profit margins.
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The taxes applied to CBU BEVs are a 30% import duty, 10% excise duty and 10% sales tax. However, Chinese BEVs get a lower 5% import duty. Once the abacus has calculated all these duties into the price, we would be looking at something closer to, if not, starting at RM 300,000.
Furthermore, the 245 PS minimum power output will see many of the models currently on the market be ineligible.
BYD would be among the hardest hit by the new ruling as the majority of its models, such as the Atto 2, Atto 3, M6 and Seal 6, do not meet the power requirements.
For brands with models that do surpass 245 PS, they will have to follow the new pricing structure. There is no winning for them.
Honda’s e:N1 does not make the cut as well but more importantly, this new ruling could see the upcoming Honda Super-One’s arrival dead in the water before even stepping on our shores. The EV’s maximum output is only 95 PS, well below the cut.
One winner amidst all this chaos though is Tesla. The brand was granted a special exemption from APs by the government, although that is a can of worms for another fishing expedition.
All CBU BEVs that in transit, including those already here, will be able to enjoy the current tax-free pricing until 1 July 2026.
MITI’s decision, if it does not make another about change, will funnel most Malaysian buyers looking for a mid-range BEV towards Proton and Tesla. The Perodua QV-E could be among the biggest winners with this move as well.