Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain has said at today’s Kuala Lumpur International Mobility Show (KLIMS) 2026 media update event that the association supports MITI’s latest CBU EV policies “to reduce trade imbalance in the automotive sector, however, these need to be properly crafted and carried out in phases to enable the industry to react and adapt.”
“Limiting the choices of EVs in the market could derail the government’s intention towards net zero emissions by 2050 and to achieve 20% [of TIV for EVs] in Malaysia by 2030. In 2025, EV sales only accounted for less than 4% of the TIV. Malaysia still lags behind countries like Vietnam, Thailand and Indonesia where [EV market share] has [exceeded] 15%,” he said.
“In terms of EV adoption rates, it is also the aspiration of MAA and the industry to see that these goals are met for the betterment of our future generations, and this recent move will eventually lead to a healthy market environment that is balanced and sustainable for the EV ecosystem, one [which] encourages greater localisation through CKD assembly as well as attracts higher-value investments, opens up new job opportunities and enhances Malaysia’s position within the regional EV ecosystem,” Shamsor added.
MITI’s latest CBU EV policy, which comes into effect July 1, states that all CBU EVs will need to have a cost, insurance and freight (CIF) value of at least RM200k and a power output of at least 180 kW (245 PS). This supersedes a ruling announced less than four months prior, which mandated a RM250k floor price and a power output of at least 200 kW (272 PS).
There are new CKD EV rules too – for all new EV plants after September 2025, the vehicles must not be priced below RM100k, 80% of production must be exported, and there must be a paint shop, which is a costly element in a car factory and a sign of ‘serious work’ being done there, so to speak.
But it’s the 80% export requirement that’s the hardest to satisfy. To circumvent this, carmakers that don’t already have a local CKD partner (like BYD) will have to find one instead of setting up their own plant – if they didn’t do so by September 2025.
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