MITI Sets Minimum Price & Output For New CBU EVs From New Brands

Leaked circular from MITI stipulating new conditions for new CBU EVs imported into Malaysia this year by new brands and OEMs using Franchise APs. (Source: LinkedIN)

Here’s a surprise leaked circular from the Ministry of Investment, Trade & Industries (MITI) that we chanced upon sighting on LinkedIN on New Year’s Eve.

It seems the ministry has set some new minimum standards for new fully imported (CBU) electric vehicles (EVs) from any new brand and manufacturer (OEM) entering Malaysia in 2026 via Franchise APs. This new ruling takes effect starting from Jan 1, 2026 onwards.

For existing brands and OEMs with CBU EVs on sale in Malaysia, there are no changes - these are still subjected to the RM100,000 floor price requirement, but they're not levied with import and excise duties.

Before we proceed, let us stress that these new conditions only apply to new CBU EV offerings from new brands and manufacturers. As for existing ones with EVs already on sale in Malaysia currently see no changes to the conditions they were subjected to prior.

In other words, the latter group with CBU EVs imported using Franchise APs must still adhere to the minimum floor price RM100,000. Additionally, CBU EVs from existing brands imported into Malaysia after Dec 28, 2025 will be levied with import and excise duties.

With those out of the way, here’s what we can garner…

For new EV brands and OEMs entering Malaysia this year, their CBU EV offerings must not be priced lower than RM250,000 OTR. (Images for illustration purposes only)

RM250,000 Minimum Price

We’ll start with the easiest part to fathom – price. From said circular, MITI will only allow new EV brands to enter Malaysia in 2026 with new CBU EV models imported using Franchise APs that carry on-the-road (OTR) prices no less than RM250,000 per unit.

There’s indeed plenty of reasons for this, but one stands out clearly – the government wants new brands and manufacturers to consider localising their products, likely through efforts like local assembly (CKD), and for them to do so from the very beginning.

There are pros and cons to this. Minimum price aside, what’s also very curious is the next accompanying condition.

The 200 kW (272 PS) minimum output requirement now rules out things like the Dacia Spring pictured - one of the most affordable small EVs from Europe - from entering Malaysia, at least as a CBU offering.

200 kW Minimum Output

Besides price, new CBU EV models from new brands and manufacturers imported into Malaysia in 2026 using Franchise APs must also possess a minimum power output of 200 kW – which roughly equates to 272 PS.

We reckon this stems from a safety perspective – this ensures newly imported CBU EVs are at least highway-capable in terms of performance and speed – and perhaps range. In short, don’t expect to see small EVs from brands not currently in Malaysia like the Dacia Spring – which only has a peak output of 65 PS – entering our market as a CBU offering.

Again, there are plenty of advantages and disadvantages to this too, but you can share your take on this via the comments section below too.

Proton EV CKD plant pictured for illustration. Clearly, for any new EV brand or OEM seeking to enter Malaysia, the govt wants them to consider localisation (CKD) from the very beginning.

CBU EV Duties For Existing Brands Still Unclear

Whilst the new conditions detailed are set clearly for new EV brands and OEMs entering Malaysia in 2026, one key question remains for existing crop of EV brands and manufacturers already in Malaysia – what are the new CBU EV duty rates for them? This has not been publicly disclosed yet

What’s clear though instead is that these marques must consider localisation (CKD) of their EV products to stay competitive. Besides Proton and Perodua, OEMs producing EVs locally now include Volvo, Mercedes-Benz, Chery and, more recently, TQ Wuling. This year, Leapmotor (Stellantis Malaysia), MG, XPeng, as well as Volkswagen and BYD will join them.