The Malaysian Automotive Association (MAA) has expressed concern over Malaysia’s updated CBU EV policy, saying any changes involving electric vehicle policies must be implemented carefully and in phases to avoid disrupting the industry and slowing EV adoption.
Speaking during the Kuala Lumpur International Mobility Show (KLIMS) 2026 media event, MAA President Mohd Shamsor Mohd Zain said the association supports the government’s efforts to strengthen the local automotive industry and reduce trade imbalance, but stressed that policy changes must allow enough time for the industry to adapt.
He said, “Policies need to be properly crafted and carried out in phases to enable the industry to react and adapt.”
He added, “Limiting the choices of EVs in the market could derail the government’s intention towards net zero emissions by 2050 and to achieve 20% in Malaysia by 2030.”
According to Shamsor, EVs account for less than 4% of Malaysia’s Total Industry Volume (TIV) last year, while neighbouring countries such as Thailand, Indonesia and Vietnam have already surpassed 15%.
The comments were made following MITI’s latest policy revision for fully imported (CBU) EVs which will take effect from 1 July 2026. The announcement was made on 30 April 2026, leaving the automotive industry with about two months to respond.
Under the updated ruling, new CBU EVs must have a minimum Cost, Insurance and Freight (CIF) value of RM200,000 and produce at least 180kW (241hp) of power.
MITI has said the move is intended to encourage more local EV assembly and higher-value investments in Malaysia’s automotive sector.
However, the updated requirements would affect many EV models currently priced below RM300,000 from brands such as BYD, Mini, Smart, Toyota, BMW and Mercedes-Benz. Concerns have also been raised previously that local CKD EV production capacity may not be able to scale up quickly enough to meet growing EV demand in Malaysia.
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