Malaysia

Electric vehicle import rules end as CBU exemption period closes

Higher value and performance thresholds to take effect from July 2026 as government recalibrates EV policy after four-year incentive window

Updated 2 months ago · Published on 06 May 2026 4:49PM

Electric vehicle import rules end as CBU exemption period closes
Beginning 1 July 2026, all newly imported fully assembled electric vehicles will be required to meet enhanced entry criteria - May 6, 2026

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

Spotlight

Malaysia

Malaysian man arrested at Singapore checkpoint with over 10kg of drugs

Malaysia

Thai border town Dan Nok fades as new border crossing diverts Malaysian traffic

Malaysia

1MDB Trial: UK investigator concedes he did not trace returned US$620mil back to Najib

Malaysia

11 dead, 35 injured during RXZ Members 8.0 event

Malaysia

Selangor MB apologises for police escort's behaviour towards road user (video)

Malaysia

Two detained in MACC probe into Tabung Haji RCI findings

Malaysia

Penang orders owners, operators of heritage shophouses to conduct regular inspections

By Ian McIntyre

Malaysia

‘Do not reveal information about your child on social media’ - Minister

Malaysia

Penang: Two tourists injured by falling debris along Armenian Street

Malaysia

Police identify KLIA screening officer as probe deepens into pilot drug case

You may be interested

Malaysia

3 men arrested for smashing car windows in Desa Mentari (videos)

Malaysia

KLIA security breach: Police investigate possible inside help in pilot drug case

Malaysia

DAP to let delegates decide whether to remain in unity government, says Loke

By Alfian Z.M. Tahir

Malaysia

Two remanded over murder of businessman whose body was found wrapped in netting

Malaysia

Selangor records over 3,700 child sexual crime cases over five years

Malaysia

Khairy calls on UMNO to admit Tabung Haji governance failings to show reform commitment

Malaysia

Teachers recount heroic response in closed-door trial of fatal Bandar Utama school stabbing

Malaysia

Subang among nation’s hottest as MetMalaysia urges vigilance over changing weather