A Major Shift in Malaysia’s Green Policy
In a move that is set to redefine the local automotive landscape, the Ministry of International Trade and Industry (MITI) has officially established a minimum price floor for Completely Built-Up (CBU) electric vehicles (EVs) at RM250,000. This policy change signals a significant pivot in how Malaysia intends to manage the influx of foreign electric cars while balancing the growth of the local manufacturing ecosystem.
For the average Malaysian consumer, this news might come as a bit of a shock. Over the last two years, we have seen a surge of affordable EV options entering our shores, with many models hovering around the RM100k to RM150k mark. By setting a quarter-million Ringgit baseline, the government is clearly drawing a line in the sand between premium imports and the mass-market segment.
Protecting Local Industry or Slowing Down Adoption?
My analysis of this move suggests a dual-purpose strategy. On one hand, this price floor acts as a protective shield for local carmakers like Proton and Perodua. As these national brands gear up to launch their own EV lineups—such as the highly anticipated Proton e.MAS series—the RM250,000 floor ensures that foreign CBU models don’t undercut local products before they even hit the showrooms.
On the other hand, there is a valid concern regarding the pace of EV adoption. If the goal is to reach net-zero emissions, making EVs more expensive seems counterintuitive. However, the government’s perspective appears focused on industrialization rather than just consumption. They want brands to stop just shipping cars in and start building them here in Malaysia through Completely Knocked-Down (CKD) operations.
What This Means for Prospective EV Buyers
If you have been eyeing a premium EV that currently sits just below the RM250,000 mark, your window of opportunity is closing fast. This policy change will likely lead to a bifurcation of the market:
- The Luxury Segment: High-end European and American EVs will continue to dominate the RM250k+ space, unaffected by the price floor.
- The CKD Segment: We expect to see more brands announcing local assembly plans to bypass this minimum price, which could eventually lead to more stable pricing in the long run.
- The National Segment: Proton and Perodua will now have a massive “safe zone” to price their upcoming EVs competitively without fear of being drowned out by cheap CBU imports.
The TechSlack Verdict
While this might feel like a step backward for those hoping for a “cheap” Tesla or BYD import, it is a strategic play for Malaysia’s long-term automotive sovereignty. By forcing a higher entry price for imports, MITI is essentially incentivizing global brands to invest in local factories, which translates to jobs and technology transfer for Malaysians.
As we move through 2026, the “reality check” for the EV boom is here. The question is no longer just about how many EVs are on the road, but how many of them are actually made on Malaysian soil.