OMV Revision Resolved, No Price Increase for CKD Cars in 2026 – MAA

No price increase for CKD cars in 2026, as the revised OMV framework issue has been resolved, said the MAA.

Locally assembled (CKD) vehicles won’t go up in prices this year, as the open market value (OMV) excise duty revision issue that previously threatened to increase prices of CKD models has been resolved, according to the Malaysian Automotive Association (MAA).

MAA President Mohd Shamsor Mohd Zain

Announced by its president, Mohd Shamsor Mohd Zain, during the association’s annual press conference earlier today, the proposed PU(A) 402/2019-Excise Tax Regulations (Determination of Value of Locally Produced Goods for Excise Tax Purposes) has already been deferred by six months, as announced by the Ministry of Finance (MoF) late last year.

According to the MAA president, the extra six-month deferment is just to give time for relevant parties to “finalise their calculations,” and the impact of its implementation will be very minimal on the prices of CKD models in Malaysia.

To recap, the proposed OMV revision is set to introduce a new methodology for calculating a CKD vehicle’s open market value, which will influence how much the car will be taxed and eventually priced. Prior to this announcement, industry players have warned that the implementation of this OMV revision could result in vehicle price increases of between 10% and 30%, depending on model and segment.

Originally gazetted in late 2019, the PU(A) 402/2019-Excise Tax Regulations were supposed to be enforced in 2020, but the COVID-19 pandemic forced MOF to defer their implementation to 2021. This was then followed by several more deferments, with the latest one made until Dec 31, 2025.

All these deferments have led to uncertainties among industry players, affecting their planning, forecasting, overall operations, and ultimately investments into the local automotive industry. On the other hand, the implementation of these regulations, which could potentially lead to the price increase of CKD cars of up to 30%, would also disincentivise automakers from investing in local production, thus leading to a huge loss for the industry and the national economy as a whole.