New Policy Shake-up: The RM250,000 Minimum Price for CBU EVs
In a move that is set to redefine the automotive landscape in Malaysia for 2026, the Ministry of International Trade and Industry (MITI) has officially enforced a minimum price of RM250,000 for completely built-up (CBU) electric vehicles. This isn’t just a minor administrative tweak; it is a major policy shift that will fundamentally change which EVs you see on Malaysian roads and how much you’ll need to shell out for them.
For the past few years, we’ve enjoyed a relatively open market where entry-level EVs from various global brands were starting to become accessible to the middle class. However, this new floor price effectively pushes all imported CBU EVs into the luxury bracket. If you were eyeing a budget-friendly imported EV, your window of opportunity is rapidly closing.
Why the RM250k Floor Price Matters
The logic behind this move is clear: the government wants to protect and stimulate the local automotive manufacturing industry. By setting a high price ceiling for imports, MITI is essentially forcing car manufacturers to consider local assembly (CKD) if they want to remain competitive in the mass-market segment. For us as consumers, this means the days of “cheap” imported EVs are over, but it might pave the way for more locally-made electric cars that could benefit from different tax incentives.
However, this creates an immediate “reality check” for the EV boom we’ve been witnessing. With a RM250,000 entry point for CBUs, many aspiring EV owners might find themselves priced out, shifting their attention back to internal combustion engines (ICE) or hybrid alternatives unless local brands can fill the gap quickly.
The Impact on Luxury Brands and New Models
This news comes just as we are seeing high-end prototypes hitting our shores. For instance, the upcoming BMW iX3 Long Wheelbase is already making waves as a potential benchmark for driving dynamics. For luxury brands already operating above the RM250,000 mark, it’s business as usual. But for brands that were planning to bring in mid-range electric SUVs and sedans, their entire Malaysian product roadmap just got hit with a massive roadblock.
We expect to see a surge in interest for the remaining stock of EVs currently priced below this threshold before the regulation fully takes hold of the inventory. If you’ve been sitting on the fence about a sub-RM200k EV, the time to act is likely right now.
TechSlack’s Take: A Double-Edged Sword
While we understand the need to bolster local industry, this move feels like a step back for the democratization of green technology in Malaysia. High adoption rates usually require affordability. By making the “barrier to entry” for imported EVs so high, we risk slowing down the transition to sustainable transport for the average Malaysian family. All eyes are now on our local manufacturers to see if they can produce world-class EVs at a price point that makes sense for the rakyat.