Malaysia EV Cars Debate: Benefits and Drawbacks Explained - AI generated image
Malaysia’s revised EV import rules are expected to accelerate local assembly activities, benefiting domestic automotive players while pushing imported electric vehicles into the premium market segment.
Malaysia’s electric vehicle industry is entering a new phase as government policy shifts from encouraging EV adoption to strengthening local manufacturing. Beginning July 1, 2026, imported completely built-up (CBU) EVs must meet a minimum cost, insurance and freight (CIF) value of RM200,000 and deliver at least 180kW of power output.
The new requirements are expected to significantly increase the retail prices of imported EVs, effectively positioning them within the premium segment. Industry observers estimate that many affected models could exceed RM300,000 after duties, taxes and distribution costs are added.
The policy change is expected to benefit automakers with established local assembly operations. Companies linked to locally assembled EVs, including Proton, Perodua, XPeng, Wuling, Volvo and Leapmotor, are seen as being well-positioned to capture future demand as consumers seek more affordable alternatives.
Among listed automotive players, MBM Resources remains a preferred sector pick due to its exposure to Perodua’s growing EV programme and resilient mass-market presence. Meanwhile, Proton is expected to emerge as a major beneficiary as it expands production of its e.MAS models.
While imported EV brands may rely on existing inventories in the short term, analysts expect demand to gradually shift toward locally assembled EVs, hybrid vehicles and selected internal combustion engine models over the coming years.
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