Govt has no plans to reverse new EV import rules

 The policy aims to manage the entry of electric vehicles into the market while ensuring the development of a competitive and sustainable local automotive industry.

The investment, trade and industry ministry previously said the two new conditions imposed on the import of CBU electric vehicles followed the end of a four-year special exemption on Dec 31 last year. (Reuters pic)

KUALA LUMPUR:

The government has no plans to reverse its recently announced rules on the import of completely built-up (CBU) electric vehicles (EVs), according to the investment, trade and industry ministry.

In a written parliamentary reply, the ministry said the measure was in line with the objectives of the National Automotive Policy (NAP), which aims to manage the entry of EV models into the market while ensuring the development of a competitive and sustainable local automotive industry.

“The government has always adopted a balanced approach between protecting consumers’ interests and developing the local automotive industry.

“Consumers have the right to access affordable EVs. The country also needs a strong automotive industry to create high-skilled jobs, develop local vendors, attract quality investments and strengthen the domestic supply chain,” the ministry said.

It was responding to a question from Pang Hok Liong (PH-Labis), who asked whether the government would retract its recent decision to increase EV prices, which he said contradicted efforts to accelerate EV adoption and consumers’ right to own affordable EVs priced below RM100,000 or RM150,000.

The ministry previously confirmed two new conditions for the import of CBU EVs following the end of a four-year special exemption on Dec 31, 2025.

The ministry said all imported CBU EVs from July 1, 2026 would be subject to a minimum cost, insurance and freight (or CIF) value of RM200,000.

The second requirement is that the minimum motor power threshold had been lowered to 180kW from the previous 200kW.

In today’s written parliamentary reply, the ministry said the government had not stopped promoting EV adoption and would continue providing 100% exemption from import duty, excise duty and sales tax for locally assembled completely knocked-down (CKD) EVs until Dec 31, 2027.

“This measure allows manufacturers to offer EV models at more competitive prices while encouraging local assembly activities, technology transfer and the development of local vendors,” it said.

The ministry added that the government was also accelerating the development of the EV ecosystem by expanding the nationwide charging network.

“This approach is important as consumers’ ability to own EVs depends not only on vehicle prices but also on the availability of easily accessible charging facilities.

“Experience from the internal combustion engine vehicle industry shows that consumer adoption grows alongside a strong ecosystem, including support from more than 3,000 petrol stations nationwide,” it said. - FMT