No U-turn: MITI to maintain new CBU BEV import rules

The Ministry of Investment, Trade and Industry (MITI) has no plans to reverse its decision on the new rules governing the import of fully imported or completely built-up (CBU) battery electric vehicles (BEVs), according to a report by Free Malaysia Today (FMT).

The ministry said the new ruling aligns with the objectives of the National Automotive Policy (NAP), which aims to ensure a competitive and sustainable local automotive industry as more BEV models enter the Malaysian market.

“The government has always adopted a balanced approach between protecting consumers’ interests and developing the local automotive industry.

“Consumers have the right to access affordable BEVs. The country also needs a strong automotive industry to create high-skilled jobs, develop local vendors, attract quality investments and strengthen the domestic supply chain,” the ministry said.

The statement was made in response to a parliamentary question from Pang Hok Liong (PH-Labis), who argued that the new CBU BEV rules contradicted efforts to accelerate BEV adoption and consumers’ access to affordable electric vehicles priced below RM 100,000 or RM 150,000.

Under the latest ruling, all CBU EVs are subject to two key conditions from 1 July 2026: a minimum CIF (cost, insurance and freight) value of RM 200,000 and a minimum power output of 180 kW (245 PS).

The new requirements are expected to significantly reshape the CBU BEV market, particularly as the RM 200,000 CIF threshold is calculated before taxes and distributor margins. This means affected models could see substantially higher retail prices once additional costs are included.

Currently, imported BEVs in Malaysia are subject to a 30% import duty, 10% excise duty and 10% sales tax. Certain BEVs imported from China may qualify for lower 5% import duties under existing preferential arrangements. However, after factoring in taxes, logistics costs and distributor margins, vehicles affected by the new CIF threshold could potentially retail closer to the RM 300,000 range.

The minimum power output requirement will also affect model availability, potentially rendering lower-output CBU EVs such as the BYD Atto 3, Honda e:N1, and MG4 ineligible for continued sale under the new framework.