Malaysia will restrict the entry of fully imported electric vehicles beginning in July, a policy shift expected to reduce the presence of many mid-range Chinese EVs in the local market.
According to a circular issued by the Ministry of Investment, Trade and Industry on Wednesday, the new regulations will raise the minimum retail price and minimum power output requirements for fully imported EVs.
The ministry stated that the cost of insurance and freight for fully imported electric vehicles must be at RM200,000, while the minimum power output requirement has been set at 180 kilowatts. It added that, after accounting for duties and taxes, the retail price of such vehicles could rise to a minimum of RM300,000.
The new policy replaces Malaysia’s earlier EV import framework, which had provided excise and import duty exemptions from 2021 until December of last year. Vehicles already imported by distributors will not be subject to the revised rules, the ministry added.
As outlined in the ministry’s circular, China’s BYD—currently the world’s largest EV manufacturer—would be allowed to sell only two of its seven models in Malaysia. Tesla, which also fully imports its vehicles into the country, currently prices all its models below RM300,000.
The new rules provide a competitive advantage to national carmakers Proton Holdings and Perodua (Perusahaan Otomobil Kedua), shielding them from Chinese EV competition as Malaysia seeks to advance its domestic EV industry.
Malaysia’s latest measures follow similar actions by other countries, including the European Union, Mexico, and Brazil, all of which have introduced tariffs impacting imports of Chinese electric vehicles.
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