PETALING JAYA: The floor price policy for fully imported, completely built-up (CBU) electric vehicles (EV), is being reviewed to strengthen local assembly activities.
Investment, Trade and Industry Minister (pic) Datuk Seri Johari Abdul Ghani said under the Approved Permit (AP) Franchise policy, all imported CBU passenger vehicles are subject to a minimum on-the-road price of RM250,000.
Clarifying that the new floor price was not meant to make EVs inaccessible, he said the mechanism was meant to manage imports and support the local automotive sector.
“This was a deliberate, time-limited measure designed to stimulate consumer demand and build EV familiarity in the market, while providing Proton, Perodua and the broader national automotive ecosystem the time and space needed to develop their EV capabilities and supply chains.
“Nevertheless, my ministry is currently reviewing the floor price policy to strengthen local assembly activities while ensuring that CBU vehicle pricing is driven by market forces,” Johari said in a statement yesterday.
The floor price comes with a minimum power output requirement of 200kW or about 268 horsepower.
However, EV brands already operating in Malaysia are not affected by the new thresholds.
“Local manufacturing and assembly, not perpetual CBU imports, is the government’s longer-term strategy for making EVs more accessible and affordable to Malaysians,” Johari said.
On March 7, industry stakeholders and observers said Malaysia’s move to impose a floor price on fully imported new vehicles could reshape the EV market by encouraging more local assembly while limiting the entry of lower-cost imported models.
