Malaysia Imposes RM200K Minimum Price on Imported EVs from July 2026 to Boost Local Manufacturing

Malaysia's Ministry of Investment, Trade and Industry (MITI) has introduced stricter rules for importing fully built electric vehicles following the end of a special exemption period.

The exemption under the AP Francais scheme, which waived duties on completely built-up (CBU) EVs, expired on December 31, 2025.

New Import Thresholds

Starting July 1, 2026, CBU EVs must have a minimum cost, insurance, and freight value of RM200,000 (about $51,000) and at least 180kW motor output.

Importers can still sell pre-existing stock, including vehicles in transit, under the old duty-free terms until depleted.

Historical Context from NAP 2020

These changes build on the National Automotive Policy 2020 (NAP 2020), which aims to position Malaysia as a regional EV hub with 20% EV sales by 2030.

Previous incentives spurred EV adoption, with registrations more than doubling in Q1 2026 amid surging demand.

Protecting Local Champions

The policy shields homegrown makers like Proton and Perodua, whose affordable EVs such as the e.MAS 5 and QV-E start below RM100,000 through local assembly.

Chinese giants like BYD are shifting to local production, reducing reliance on costly imports and creating jobs.

A non-obvious angle is how the lowered 180kW threshold from prior 200kW rumors broadens options for premium imports while curbing cheap mass-market flooding.

Industry Implications and Consumer Impact

This refines the EV market by favoring localized assembly, mirroring Thailand's strategies in the ASEAN race for supremacy.

For everyday Malaysians, it means pricier imported EVs but cheaper local alternatives, accelerating sustainable transport access.

Looking ahead, expect more factories and infrastructure, solidifying Malaysia's green mobility leadership.