MITI tightens EV CBU requirements - Minimum price expected to rise to RM300000 starting July

According to an exclusive report by Paul Tan, the Ministry of Investment, Trade and Industry (MITI) has issued new, stricter regulations for imported fully built electric vehicles (CBU EVs), which will come into effect from July 2026. So, what should you know about it?

An encouragement from MITI for local brands to do CKD

For your information, this move is seen as MITI's effort to encourage more brands to do local assembly (CKD) and protect the country's automotive industry, especially Proton. Based on a MITI circular distributed to Franchise Approved Permit (AP) holders, all imported CBU EVs must meet two main requirements:

  • Minimum CIF value RM200000
  • Minimum power 180 kW (equivalent to 245 PS or 241 hp)

As a result, the minimum on-the-road (OTR) price in the market is expected to reach RM300,000 and above. Existing stock and vehicles in transit are exempt from this new regulation. This is in line with MITI's previous statement denying allegations of forcing BYD to export 80% of production and maintaining the price of CKD EVs starting at RM100000.

Additionally, thanks to this regulation, many popular imported EV models such as the BYD Atto 3, M6, Atto 2, MGS 5 and similar models with power below 245 PS are expected to no longer be imported as CBU. Overall, the regulation will also slow down the consumer transition to EVs a bit as the options are getting smaller, especially in the RM100k-RM300k price range. Proton EVs are not really affordable either (except for the e.MAS 5). What about Perodua? It seems to have disappeared from the radar.

Stay tuned to TechNave.com for more updates like this.