PETALING JAYA: The government is reviewing its electric vehicle (EV) import “floor price” policy as part of efforts to strengthen local automotive assembly while managing the pace of EV adoption, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
In a statement on Tuesday (March 31), he said that under the Approved Permit (AP) franchise policy, all completely built-up (CBU) passenger vehicles imported into Malaysia are currently subject to a minimum on-the-road (OTR) price of RM250,000. The mechanism is intended to regulate imports and support the domestic automotive sector.
To encourage early-stage EV take-up, the government introduced a temporary relaxation beginning in 2022 and running until Dec 31, 2025. During this period, the minimum OTR price for CBU EVs was lowered from RM250,000 to RM100,000.
Johari said the measure was designed to help stimulate demand and increase familiarity with EVs in Malaysia, while allowing national manufacturers such as Proton and Perodua, as well as local suppliers, time to build their EV-related capabilities and supply chains.
He added that his ministry is now reassessing the floor price policy to reinforce local assembly activities and ensure that prices of imported CBU vehicles are more closely aligned with market conditions.
The review comes in response to concerns about a possible rule requiring imported CBU EVs to be priced above RM250,000, which some critics argue could make EVs less affordable for consumers.
Johari said the government’s longer-term approach is to promote domestic manufacturing and assembly of EVs rather than rely heavily on fully imported models.
On March 7, industry stakeholders and analysts said Malaysia’s price floor policy on fully imported new vehicles could alter the EV market by encouraging greater local assembly while potentially limiting the entry of lower-cost imported EVs.
