Electric vehicle import rules end as CBU exemption period closes

THE Government is set to impose stricter conditions on the importation of fully built electric vehicles following the expiry of a four-year exemption scheme that had eased market entry for foreign EV models.

The Ministry of Investment, Trade and Industry (MITI) confirmed that the special exemption granted to Completely Built-Up (CBU) electric vehicles under the Approved Permit Franchise framework ended on 31 December 2025, signalling a transition towards a more standardised regulatory approach.

In a statement released on Wednesday, MITI said, with the exemption period concluded, the import policy has reverted to its original structure.

However, authorities have allowed a grace period for companies to clear remaining inventories, including vehicles already in showrooms, at ports, or in transit, which may still be sold under the previous exemption terms until stocks are depleted.

Beginning 1 July 2026, all newly imported fully assembled electric vehicles will be required to meet enhanced entry criteria.

These include a minimum cost, Insurance and Freight value of RM200,000, alongside a revised minimum motor output threshold set at 180kW and above, adjusted from the previous 200kW requirement.

The ministry said these changes had been formally communicated to Approved Permit holders during an engagement session held on 30 April 2026, providing industry players with advance notice to adapt to the updated framework.

In outlining the rationale behind the policy reset, the ministry emphasised its commitment to fostering a transparent, consistent and balanced regulatory environment, aimed at supporting long-term growth in the automotive sector while protecting national economic interests and the rights of consumers. - May 6, 2026