CBU EV sales in Malaysia up 33% in Nov as tax holiday nears end, new duty rates yet to be specified – report

The Atto 3 was BYD’s best-selling model last month

Come January 1, fully-imported (CBU) EVs will no longer be tax-free (they have been since Budget 2022), and so those wanting one have been understandably springing into action. See November’s top 20 EV brands and EV models.

The Star reports, citing road transport department (JPJ) data, that 33% more CBU EVs were sold in Malaysia in November (4,282 units, a new high) versus October (3,211 units), which was itself 22% up from September (2,628 units). Throw in locally-assembled (CKD) EVs and the combined month-on-month increase is 24.7% (5,417 units in November versus 4,345 units in October).

Asked if CBU EV prices will go up come January 1, BYD Malaysia MD Eagle Zhao told the English-language daily that the exact impact is still being evaluated as the finance ministry has yet to specify the new tax rates.

The Tesla Model Y was the best-selling EV in Malaysia last month; Tesla is unlikely to CKD in the country

“While the introduction of excise duty for imported EVs may lead to price adjustments across the market, both BYD and Sime Motors remain committed to keeping EVs accessible,” he said, adding that BYD and Denza have sold a combined 12,872 units year-to-date (+76% over 2024).

BYD, Malaysia’s top EV brand, is planning a plant in KLK TechPark, Tanjong Malim, but it’s only expected to be ready by the second half of 2026. CBU EV stock unsold by January 1 could be subjected to price hikes – industry players have previously speculated increases between 30% and 100%. So brands that want to stay competitive will have to assemble their EVs in the country.

Carmakers already producing EVs in Malaysia include Proton, Perodua, Volvo, Chery, Mercedes-Benz and TQ Wuling. Besides BYD, Zeekr could do it at DRB-Hicom’s Automotive Hi-Tech Valley (also in Tanjong Malim), Leapmotor is expected to use Stellantis’ Gurun plant, EPMB will do it for Xpeng and MG, and Volkswagen has EV plans for DRB-Hicom’s Pekan plant.

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