PETALING JAYA: The reinstatement of stricter import requirements announced recently raises the barrier for lower-priced imported electric vehicles (EVs).
However, the latest policy shift also reinforces the government’s intention to strengthen localisation and domestic EV manufacturing in Malaysia.
“While the revised framework may temporarily slow EV adoption within the affordable segment, the longer-term implications could be positive for local assemblers, completely knocked-down (CKD) players and domestic automotive suppliers,” TA Research said.
Companies with stronger localisation capabilities and strategic EV partnerships are likely to be better positioned under the evolving policy landscape.
The research house noted that over the past two years, competition within Malaysia’s EV market has intensified significantly, particularly within the sub-RM200,000 segment, driven mainly by aggressive pricing from Chinese EV manufacturers.
“We believe the revised framework could gradually split the market into two segments – premium imported EVs and locally assembled mass-market EVs.
“Mid-range imported EV models may become commercially less attractive over time, particularly as the RM200,000 minimum cost, insurance, and freight (CIF) requirement could potentially lift retail prices materially higher after accounting for taxes, duties, logistics costs and dealer margins,” it added.
In terms of company impact, Sime Darby Bhd
could face some near-term headwinds given its exposure to BYD’s imported EV lineup in Malaysia.
“Most BYD models currently sold locally may not fully meet Investment, Trade and Industry Ministry’s (Miti) revised completely built-up (CBU) EV import requirements.”
However, TA Research believes that the longer-term impact could be mitigated if BYD accelerates localisation and CKD assembly plans in Malaysia.
It expects the impact on Bermaz Auto Bhd (BAuto) and MBM Resources Bhd (MBMR) to remain relatively manageable at this stage.
BAuto’s earnings are still largely supported by internal combustion engine and CKD models, limiting its direct exposure to affordable imported EVs.
For MBMR, the impact is likely to be more indirect through Perodua’s future EV plans.
“Reduced competition from lower-priced imported EVs could provide a more supportive environment for Perodua’s eventual mass-market EV strategy over the longer term,” the research house said.
Although Proton’s EV rollout has gained encouraging early traction, TA Research believes that broader adoption dynamics within the affordable EV segment remain uncertain.
This is particularly relevant for entry-level EV offerings targeting Perodua’s mass-market customer base, where affordability and value-for-money considerations continue to play a critical role in purchasing decisions.
The research house maintains its “underweight” stance on the automotive sector with 2026 total industry volume projections of 750,000.
It maintains its “sell” call on BAuto, MBMR and Sime Darby.
Miti said the four-year special exemption for imported CBU EVs under the Franchise AP scheme ended on Dec 31, 2025.
Effective July 1 2026, imported CBU EVs must meet two key requirements – a minimum CIF value of RM200,000, and a minimum motor output of 180kW or above, revised lower from the previous 200kW threshold.
