Malaysia shifts EV push from consumers to factories
New import rules aim to spur local EV investment, but affordability and consumer choice remain key concerns
[KUALA LUMPUR] As sales of electric vehicles surge, Malaysia is tightening import rules and localisation requirements as it aims to shift gears from building consumer demand to forcing automakers to invest and put factories and supply chains on the ground.
The strategic pivot comes after four years of tax incentives boosted EV sales that jumped 85.1 per cent year on year to 31,738 units in the first half of 2026, or about 7.8 per cent of total vehicle sales, according to data from Malaysia’s Road Transport Department.
From Jul 1, newly approved, fully imported completely built up EVs must meet a minimum cost, insurance and freight value of RM200,000 (US$48,863) and a minimum motor output of 180 kilowatts following the expiry of temporary tax incentives for imported EVs.
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