Malaysia Tightens EV Import Rules, Putting Chinese Car Makers at Risk

Malaysia will enforce new restrictions on fully built electric vehicles (CBU) beginning 1 July 2026. Imported EVs must have a cost, insurance and freight (CIF) value of at least RM200,000 and a motor output of no less than 180 kW (about 241 hp). The measures replace a special import exemption that ended on 31 December 2025 and are intended to stimulate domestic automotive investment, technology transfer and the development of local component vendors, creating higher‑skilled jobs.

Industry experts say the policy could boost the competitiveness of locally assembled EVs, but its success depends on Malaysian manufacturers being able to produce quality CKD kits. The rules are expected to raise vehicle prices and restrict many Chinese‑origin models that dominate roughly 60 % of Malaysia’s new‑energy vehicle market, such as those from BYD, potentially cutting those brands out of the market.

Haidee Che Rizmin, a senior lecturer at UniKL Malaysian France Institute, noted that the policy “opens opportunities for the country’s automotive industry to grow through technology transfer and the development of local vendors, while also advancing skilled labour.”