MITI says government has no plans to reverse new CBU EV policy – RM200k min CIF value, at least 245 PS

The government has no intention to retract its recently announced rules on the import of fully-imported (CBU) electric vehicles (EVs) that came into effect on July 1, 2026. This is according to a parliamentary reply by the ministry of investment, trade and industry (MITI) to Pang Hok Liong (PH-Labis), who asked if the rules would be reversed as it contradicts government policy to accelerate EV adoption among the public and consumers’ right to own affordable EVs priced below RM100,000 or RM150,000.

In its reply, the ministry said the measure aligns with the core principles of the National Automotive Policy (NAP), which aims to rationalise the influx of EV models to complement market product offerings, while also ensuring the development of a competitive and resilient local automotive industry.

“The government consistently adopts a balanced approach between safeguarding consumer interests and developing the local automotive industry. Consumers have the right to access affordable EVs, while the nation requires a robust automotive industry to create high-skilled job opportunities, develop local vendors, attract quality investments and strengthen the domestic supply chain,” it added.

MITI says government has no plans to reverse new CBU EV policy – RM200k min CIF value, at least 245 PS

Under the new policy, all CBU EVs are subject to two main conditions, which is to have a minimum declared cost, insurance and freight (CIF) value of RM200,000 as well as a minimum power output of 180 kW (which is equivalent to 245 PS or 241 hp).

On the matter of promoting EV adoption, the ministry said the government is not halting efforts in this regard. It cited the continued 100% exemption on import and excise duties as well as sales tax for locally-assembled (CKD) EVs until December 31, 2027. This is said to enable manufacturers to offer EV models at more competitive prices while encouraging local assembly activities, technology transfer and the development of local vendors.

At the same time, expansion of the local charging network is being accelerated by the government to ensure sufficient infrastructure to support EV ownership. The ministry ended its reply by saying the government’s goal is not merely to boost EV sales in the short term, but to develop a comprehensive and sustainable EV ecosystem.

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