KUALA LUMPUR (May 6): New regulations for fully imported electric vehicles (EVs) will take effect in Malaysia starting July 1, 2026, requiring higher minimum vehicle value and revised performance standards for all incoming units.

The Ministry of Investment, Trade and Industry (Miti) in a statement on Wednesday announced that all completely built-up (CBU) EV imports will be subject to two key conditions: a minimum cost, insurance and freight (CIF) value of RM200,000, and a revised minimum motor power requirement of 180 kilowatts (kW) and above, down from the previous 200kW threshold.

Miti said it briefed franchise approved permit (AP) holders on the new requirements during an engagement session on April 30. 

The updated framework follows the expiry of a four-year special exemption period under the franchise AP scheme, which ended on Dec 31, 2025, after which the policy reverted to its standard requirements. 

The duty exemption for EVs, introduced in 2022, applied to models priced at RM100,000 and above, opening the market to a broader range of imports and intensifying competition in the local automotive sector. 

While the exemption has lapsed, Miti said in the statement that companies will be allowed to clear remaining stock — including existing inventory, units at ports and those in transit — under the previous exemption terms until fully depleted.

Without the exemption, CBU EVs will be subject to import duty, excise duty and a 10% sales and service tax (SST), which are applied sequentially on top of the vehicle’s CIF value, significantly increasing the final retail price.

Miti added it remains committed to maintaining a transparent, consistent and balanced policy environment to support the development of the automotive industry, while safeguarding national economic interests and protecting vehicle consumers.