The End of Crazy Price Drops: A Market Analyst Says EV Pricing Is Finally Becoming "Rational" In Malaysia

If you’ve been keeping an eye on the Malaysian automotive market over the last year or two, you’ve probably witnessed an absolute bloodbath in the electric vehicle (EV) segment. 

Brands have been undercutting each other aggressively, dropping massive discounts, and slashing prices to win over local buyers looking to ditch traditional petrol cars. But according to a market analyst, that wild era of crazy price wars is officially drawing to a close.

Following the Ministry of Investment, Trade and Industry’s (MITI) massive announcement to drastically tighten the rules for fully imported (CBU) electric vehicles starting this July 1, the local EV landscape is about to undergo a massive vibe shift.

Mohd Shanaz Noor Azam, an automotive analyst at CIMB Securities, recently dropped a major research note breaking down exactly why this policy move will change everything for Malaysian car buyers, and why it’s actually a massive win for our local automotive players.

Here is why the era of the budget imported EV is wrapping up, and why pricing is finally about to become "rational":

1. The "Double Threshold" That Kills Mass-Market Chinese Imports

A strict new gatekeeper rule that essentially filters out entry-level urban EVs overnight. Under MITI’s brand-new framework, any fully imported EV entering Malaysia must now hit a minimum Cost, Insurance, and Freight (CIF) landing value of RM200,000, alongside a minimum motor power output of 180 kW (around 245 PS). 

The analyst points out that this raises the entry barrier so high that affordable mass-market models, especially the popular ones coming out of China, will no longer qualify for new import approvals.

2. Why "RM200,000" Actually Means Showroom Prices Will Start Above RM300k

Many Malaysians initially misread the announcement, assuming the RM200,000 limit referred to the final showroom retail price. The CIMB Securities analyst clarifies that the RM200,000 threshold strictly refers to the pre-tax landing cost at Port Klang. 

By the time you stack up the sequential import duties, excise taxes, distributor margins, and local handling fees, the absolute cheapest imported CBU EV on a showroom floor will easily launch above the RM300,000 mark.

3. Huge Fan-Favorites Are Directly In The Line Of Fire

Because of that strict 180kW motor power threshold, the analyst specifically warns that several of Malaysia’s most recognizable and top-selling entry-level models are bound to be affected. 

Beloved mass-market heroes like the BYD Atto 3, BYD Dolphin, and Ora Good Cat simply do not pack that kind of high-performance electric motor power in their standard trims, meaning their days as fresh CBU imports are numbered.

4. Proton And Perodua Are Perfectly Positioned To Win Big

Kicking out cheap overseas imports is a deliberate chess move by the government to force a shift toward localization, and national carmakers are set to reap the rewards. The analyst notes that Proton is sitting pretty with its rapidly expanding electrified portfolio and existing local manufacturing infrastructure. 

Meanwhile, Perodua is projected to see a massive EV sales surge in the second half of this year as its domestic production capabilities ramp up significantly.

5. Foreign Brands Are Being Forced to Build Local (CKD) Plants

With pure importing becoming heavily unprofitable, the new policy serves as a major wake-up call for global brands to utilize local assembly incentives (which run until the end of 2027). 

We're already seeing clever timing plays; the analyst highlights that Bermaz has already kickstarted local CKD assembly for its XPeng EV models, rushing out its first batches ahead of the July 1 deadline. In the long run, this pivot will fuel massive domestic investments in local assembly jobs, logistics, and parts vendors.

The wild west era of walking into a showroom and walking out with a fully imported, tech-loaded EV for under RM120k is hitting a massive brick wall on July 1. While it might sting for consumers who were waiting for prices to drop even lower, the CIMB Securities analysis reminds us that a chaotic price war isn't sustainable for the local industry. 

By forcing a more "rational" pricing ecosystem, the government is successfully shifting the spotlight to local manufacturing. If you still want an affordable imported EV, your window to buy existing port and dealer stock is shrinking fast, otherwise, your mass-market budget future belongs entirely to Proton, Perodua, and early CKD adopters.

Read: We're Lagging Behind! MAA Reminds MITI That Malaysia Is Already Losing The EV Race To Our SEA Neighbours

Read: RM300,000 Is The New Entry Level: 10+ Popular EVs That Won't Survive MITI’s July 1 Rule