PETALING JAYA: Demand for lower-priced imported (completely built up or CBU) electric vehicles (EVs) could remain supported in the near term, as importers clear existing inventories and vehicles already in transit ahead of new import requirements taking effect on July 1, says MBSB Research.
To note, under the new framework, the Investment, Trade and Industry Ministry (Miti) requires imported CBU EVs to meet a minimum cost, insurance and freight (CIF) value of RM200,000 and motor output of 180kW from July 1.
However, ready stock and vehicles already in transit before the implementation date are exempt from the new requirements.
MBSB Research expects the exemption to provide a temporary cushion for the market, with the impact on consumer purchasing patterns becoming more apparent once existing inventories are exhausted.
MBSB Research said the new requirement could effectively push the retail price of many imported EVs above RM300,000, moving them into the premium segment. This, it explained, is “because the CIF value only represents the vehicle’s landed cost before taxes and distribution margins”.
“Once import duty, excise duty and sales and services tax are applied, the cost rises substantially and after factoring in distributor and dealer margins, the final selling price can exceed RM300,000,” it said.
The research house added that EVs imported from Europe or South Korea could become even more expensive, “potentially exceeding RM360,000,” due to higher import duties.
“Consequently, the new framework significantly raises the entry price for CBU EVs and shifts them towards the premium segment.”
Despite the upcoming policy changes, EV adoption remained encouraging in the first quarter of 2026 (1Q26).
Citing the Malaysian Automotive Association (MAA), MBSB Research said EV sales rose 25.1% quarter-on-quarter to 13,359 units in 1Q26, representing about 7.3% of total industry volume (TIV) of 182,113 units.
However, MBSB Research noted that the MAA’s EV data includes both passenger and commercial vehicles, while sales from several high-volume EV brands such as Tesla, Zeekr and XPeng are not captured because the marques do not report their sales to the association.
“As a result, we believe that the actual EV penetration is likely higher than the figures reported by the MAA,” it said.
MBSB Research said the impact on most players under its coverage is expected to be limited, as many EV marques already have local assembly operations or are progressing towards localisation.
MBSB Research said Tesla remained the “key exception”, as its models continue to be fully imported, although it remains unclear whether the latest ruling applies given its separate BEV Global Leaders pathway.
