MITI Tightens EV Import Rules to Protect Local Ecosystem

The government has signalled a tougher stance on the importation of fully built-up (CBU) electric vehicles, saying only “quality” EV models should be allowed into Malaysia to protect the local automotive ecosystem.

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said imported EVs must add value to the industry, stressing that local players are already capable of serving the low-cost EV segment. 

Speaking after the launch of the Proton e.MAS 7 PHEV, he said the focus should not be on price alone, but on safeguarding long-term industry development, Bernama reported.

Johari also warned that uncontrolled inflows of imported EVs could lead to oversupply, potentially undermining the growth of the domestic EV market. The government, he added, wants to see more manufacturers move towards local assembly and greater localisation of automotive components.

Scale, exports and volume remain central to that ambition. Malaysia currently produces about 800,000 vehicles a year, but Johari said building a globally competitive ecosystem would be difficult without surpassing the one-million-unit mark. 

On hybrids, he said the ministry remains open to proposals and discussions from industry players.

This was the new MITI minister’s first public automotive engagement, yet key policy uncertainties that have unsettled the industry for months were left untouched. Chief among them is the evolving interpretation of the RM250,000 floor price for new CBU EV models.

Was this an indirect attempt to justify a ruling aimed at shielding CKD players? A RM250,000 on-the-road minimum would effectively shut out a wave of entry-level and mid-market EVs scheduled for launch this year, significantly narrowing consumer choice at a critical stage of adoption.

This brings the discussion back to a more fundamental issue. What exactly is Malaysia’s long-term EV roadmap, particularly for CKD offerings beyond 2027? The lack of clarity continues to create uncertainty among brands weighing whether to fully commit to local assembly.

And how does the government intend to reconcile increasingly restrictive import policies with its own targets of 20% xEV penetration by 2030, rising to 50% by 2040 and 80% by 2050?