KUALA LUMPUR (May 22): Malaysia’s latest policy change has triggered an industry-wide reset that is forcing automakers to accelerate localisation plans, said a Chinese car brand distributor.

Volt Auto Pte Ltd, the exclusive distributor of Dongfeng-branded electric vehicles (EVs) in Malaysia and Singapore, no longer has the room to import completely-built-up units while preparing for local assembly, said its chief executive officer Soh Ming.

“Instead of focusing purely on volume, we will now focus more on building the Dongfeng brand in Malaysia,” Soh told The Edge on Friday.

Under the latest rules, EVs imported from July 1, 2026 must meet a minimum cost, insurance and freight value of RM200,000, as well as a minimum power output of 180 kilowatt.

The new rule has affected the broader automotive industry, particularly Chinese EV brands that had relied on imported models to quickly enter the local market. Malaysia has been one of Southeast Asia’s fastest-growing EV markets driven by the influx of Chinese brands like BYD and Chery.

“This is not just one company’s issue,” Soh said. “This affects the whole industry and the whole nation’s EV ecosystem.”

Dongfeng currently sells Box, Vigo, and 007 models of fully electric passenger vehicles in Malaysia, priced from RM100,000 to RM200,000.

“The Box model becomes slightly harder to sell around the RM100,000 range, but fortunately, our earlier plans were already somewhat aligned with this pricing direction,” Soh added.