PETALING JAYA: Malaysia’s latest electric vehicle (EV) import policy marks a decisive shift toward localisation and could reshape the competitive landscape for automotive players, according to BIMB Research.
In a sector update yesterday, the research house said the Investment, Trade and Industry Ministry’s (Miti) new rules for completely built-up (CBU) EV imports would effectively push imported EVs into the premium category, while encouraging foreign carmakers to establish local assembly operations.
Under the new requirements, effective July 1, 2026, all new CBU EV imports under the Franchise Approved Permit system must meet a minimum cost, insurance and freight (CIF) value of RM200,000 and a minimum motor output of 180 kilowatts, or 245 metric horsepower.
BIMB Research said the “new floor pushes the effective on-the-road (OTR) entry price for global EVs to the premium range of approximately RM300,000, hollowing out the middle-market”.
The research house described the move as part of a broader industrial strategy aimed at accelerating localisation within Malaysia’s automotive sector.
“The policy shifts Malaysia from import-driven to localisation-driven EV growth, pushing foreign original equipment manufacturers toward CKD (completely knocked-down) assembly,” it said.
According to BIMB Research, the RM200,000 CIF threshold refers only to the landed cost before duties, taxes and dealer margins are applied.
As a result, qualifying imported EVs are expected to retail at between RM300,000 and RM360,000 or higher on the road.
The research house noted that Malaysia’s EV policy had evolved in three stages.
The first stage between 2022 and 2025 focused on stimulating demand through tax exemptions for imported EVs.
The second phase introduced incentives for CKD assembly and imported components to encourage localisation.
However, BIMB Research said many automakers, particularly Chinese brands, continued relying heavily on duty-free imports despite the incentives for local assembly.
“The message to foreign players is clear: commit to local assembly or exit the mass market,” the report stated.
Additionally, the research house believes the policy will divide Malaysia’s EV market into three segments, with only premium high-performance imported models forecast to survive under the new framework.
“These include flagship models such as the BYD Sealion 7, Denza D9, BMW iX xDrive50, and select high-end Tesla and luxury European offerings, all expected to retail well above RM300,000 OTR,” the research house said.
At the same time, BIMB Research expects the mass-premium EV segment priced between RM150,000 and RM250,000 to shrink significantly, with many popular imported models likely to disappear or become too expensive for mainstream buyers.
“This creates a noticeable gap in EV offerings, leaving Malaysian buyers with limited affordable options outside of locally assembled models,” the report added.
While the policy is seen as supportive of local automotive manufacturers with strong CKD exposure, BIMB Research warned of potential downside risks, particularly for EV affordability and adoption rates.
“This policy is structurally bullish for local automotive players with strong CKD exposure, but carries notable risks regarding consumer accessibility and the pace of EV transition,” it said.
Among the risks highlighted were weaker returns for EV charging operators if adoption slows, possible trade retaliation against Malaysia’s protectionist measures, and the risk that consumers may turn to grey imports or continue using internal combustion engine vehicles longer.
The research house maintained a “neutral” stance on the automotive sector, while preferring companies with local manufacturing capabilities.
It said the latest policy represented “the logical third stage of Malaysia’s long-term EV industrial plan” and described the move as a strategic “checkmate” that discourages brands seeking “CBU margins without local commitment”.
BIMB Research maintained a “hold” call on MBM Resources Bhd
with a target price (TP) of RM5.28 and Sime Darby Bhd with a TP of RM2.46, while reiterating a “sell” recommendation on Bermaz Auto Bhd with a TP of 68 sen.
Meanwhile, an automotive analyst from a foreign brokerage told StarBiz that the new policy significantly increases the pressure on foreign manufacturers to localise production if they want to remain competitive in Malaysia’s mass-market EV segment.
“Furthermore, with the RM200,000 CIF floor effectively pushing CBU EV retail prices above RM300,000, imported mid-market EVs will struggle to compete on affordability.
“That creates a strong commercial incentive for brands such as BYD, Chery and MG to expand CKD operations locally to retain pricing flexibility and market share,” he said.
Over the medium term, this could benefit local assemblers, parts suppliers and industrial parks tied to automotive manufacturing, according to the analyst.
