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Ministry of Investment, Trade and Industry (MITI) Deputy Minister Sim Tze Tzin has clarified that the return of import duties this July will not make every electric vehicle (EV) more expensive
According to Bernama, he explained that the government's completely knocked-down (CKD) strategy acts as a safeguard.
A CKD vehicle is imported as a collection of parts and assembled domestically in a local manufacturing plant.
By focusing on local assembly, prices for many models are expected to remain in the RM100,000 to RM200,000 range.
While luxury buyers might feel the pinch when purchasing Completely Built-Up (CBU) EVs, the average consumer will still have access to CKD models
CBU vehicles are fully assembled in their country of origin and imported as finished, ready-to-use products. These will be the most affected once import duties return.
Sim said the move to tax only CBU EVs is intended to protect the local industry while keeping the technology accessible to the public.
During a factory visit in Batu Kawan on 8 May, Sim noted that the policy is also aimed at building a stronger domestic value chain.
Sim argued that relying on fully imported vehicles does little to benefit the local economy
"Price increases will only affect premium imported EV models that are fully imported, particularly certain luxury brands that do not have sufficient sales volume to justify local assembly in Malaysia, while the locally assembled EV segment will continue offering more affordable options such as the Proton e.MAS, Perodua's QV-E, and Chery," he said.
Sim also reminded reporters that these taxes were not new, but rather the end of a four-year incentive period.
He said the policy is meant to encourage companies to move beyond simply shipping cars into Malaysia and instead build them locally.
Sim explained that there are wider benefits to promoting locally assembled EVs
"We want them (foreign EV brands) to localise operations, set up plants here, and collaborate with local vendors to create jobs," Sim said.
From July, imported units would also need to meet a minimum cost, insurance, and freight (CIF) value of RM200,000.
