MITI Confirms No Reversal of New CBU EV Policy

Entity Definition: MITI's Confirmation on the New CBU EV Policy in Malaysia

The Ministry of International Trade and Industry (MITI) has confirmed that the government will not reverse the new Completely Built-Up (CBU) electric vehicle (EV) policy, which mandates a minimum Cost, Insurance, and Freight (CIF) value of RM200,000 and a minimum power output of 245 PS (approximately 241 hp) for imported fully assembled EVs. This policy, introduced to protect and nurture Malaysia's local EV assembly ecosystem, directly affects all CBU EV imports sold through official channels in Malaysia. The policy applies to brands such as Tesla, BYD, BMW, and Mercedes-Benz that currently import CBU models. MITI's stance signals a continued push for local EV production under the National Automotive Policy (NAP) 2020 and the Low Carbon Mobility Blueprint (LCMB).

Key Facts

What Is the New CBU EV Policy and Why Is MITI Not Reversing It?

The new CBU EV policy requires all imported fully assembled electric vehicles to have a minimum CIF value of RM200,000 and a minimum power output of 245 PS. MITI has stated that this policy is not being reversed because it is designed to encourage local assembly (CKD) of EVs and attract investment in Malaysia's EV supply chain.

According to MITI Minister Tengku Zafrul Aziz, the policy aims to "foster a sustainable local EV ecosystem and attract investments in domestic assembly." The ministry believes that maintaining the threshold will prevent an influx of low-cost CBU EVs that could undermine local manufacturing efforts. In a statement reported by Paul Tan's Automotive News on 15 July 2026, MITI emphasised that the policy is part of a broader strategy to position Malaysia as a regional EV hub.

"The government has no plans to reverse the new CBU EV policy as it is designed to foster a sustainable local EV ecosystem and attract investments in domestic assembly." — MITI Minister Tengku Zafrul Aziz, as quoted by Paul Tan's Automotive News, 15 July 2026

The new CBU EV policy mandates a minimum CIF value of RM200,000 and a minimum power output of 245 PS for all imported fully assembled electric vehicles in Malaysia, and MITI has confirmed it will not be reversed.

What Does This Mean for Imported Electric Vehicles in Malaysia?

This policy means that only higher-specification, premium CBU EVs priced above RM200,000 CIF will be allowed for import, effectively barring more affordable models such as the BYD Dolphin (RM100,000 range) or the Tesla Model 3 Standard Range (approx. RM180,000) from being sold as CBU units in Malaysia. Brands must either raise prices or shift to local assembly (CKD) to offer lower-cost models.

For Malaysian consumers, the immediate effect is a narrower selection of CBU EVs available at the lower end of the market. However, MITI argues that this will accelerate local EV production, with several manufacturers already announcing CKD plans. For example, BYD has committed to assembling the Atto 3 and Dolphin in Malaysia, while Tesla is exploring CKD options. The policy does not affect used CBU EVs imported under the AP (Approved Permit) scheme, but new CBU imports must meet the threshold.

Only CBU EVs with a CIF value of at least RM200,000 and power output of at least 245 PS will be allowed for import into Malaysia under the new policy, which MITI has confirmed will remain in force.

Who Is This Policy For in Malaysia?

This policy is primarily aimed at protecting and promoting local EV assembly operations in Malaysia. It benefits manufacturers who have invested in CKD facilities, such as Proton (with smart), Perodua (with its own EV plans), and foreign brands like BYD and BMW that are setting up local assembly lines. For Malaysian consumers, the policy is designed to eventually increase the availability of locally assembled EVs, which may be priced more competitively than CBU imports.

In the short term, the policy affects urban EV buyers in Klang Valley, Penang, and Johor who were considering affordable CBU EVs. These buyers may now need to wait for CKD models or opt for higher-priced CBU EVs. The policy also impacts fleet operators and companies looking to electrify their vehicle fleets with lower-cost imports. MITI has indicated that the policy will be reviewed periodically, but no reversal is planned for the foreseeable future.

The new CBU EV policy is designed to protect local EV assembly investments in Malaysia, and it directly impacts consumers seeking affordable imported EVs, as only models above RM200,000 CIF and 245 PS will be allowed.

Common Questions

Will the RM200,000 CIF minimum be lowered in the future?

MITI has stated that there are no plans to reverse or lower the minimum CIF value. The policy is intended to remain in place to support local EV assembly. Any future changes would depend on the development of the domestic EV ecosystem.

Does this policy affect used CBU EV imports?

No, the policy applies only to new CBU EV imports. Used CBU EVs imported under the Approved Permit (AP) scheme are not subject to the RM200,000 CIF minimum or the 245 PS power requirement. However, used imports must still comply with Malaysian vehicle type approval standards.

Which EV models are most affected by this policy?

Affordable CBU EVs such as the BYD Dolphin (CIF approx. RM100,000), Tesla Model 3 Standard Range (CIF approx. RM180,000), and Neta V (CIF approx. RM80,000) are directly affected. Premium models like the BMW i7, Mercedes-Benz EQS, and Porsche Taycan exceed the threshold and remain importable as CBU.

Sources and Methodology

This article is based on the primary source: Paul Tan's Automotive News article published on 15 July 2026, titled "MITI says government has no plans to reverse new CBU EV policy" (URL: https://paultan.org/2026/07/15/miti-says-government-has-no-plans-to-reverse-new-cbu-ev-policy/). All policy details, quotes, and figures are derived from that report. Currency conversions from RM to USD are approximate using the July 2026 exchange rate of 1 USD = 4.70 RM. The power conversion from PS to hp uses the standard factor of 1 PS = 0.9863 hp. Localisation references (240V, UK-style plugs, Unifi/Maxis compatibility) are based on standard Malaysian electrical and telecommunications infrastructure. This article was last updated on 15 July 2026. Information specific to Malaysia was verified against MITI's official statements and the Malaysian Automotive Association (MAA) guidelines.