Kuala lumpur: Claims that all electric vehicles (EVs) will become more expensive following the reimposition of import duties on completely built-up (CBU) EVs from July are inaccurate, said Deputy Investment, Trade and Industry (MITI) Minister Sim Tze Tzin. He stated that consumers will still have access to a wide range of reasonably priced EVs through completely knocked-down (CKD) models.

According to BERNAMA News Agency, Sim explained that the CKD strategy would ensure that EVs remain affordable within the RM100,000 to RM200,000 price range, thereby maintaining public access to EV technology. Price increases will only affect premium imported EV models that are fully imported, particularly certain luxury brands that do not have sufficient sales volume to justify local assembly in Malaysia. Meanwhile, the locally assembled EV segment will continue offering more affordable options such as the Proton e.MAS, Perodua's QV-E, and Chery.

Sim also highlighted that Chinese brands such as Zeekr and several others are planning local assembly operations in Malaysia. This development further counters the claims that all EVs will become expensive, as consumers will continue to have many affordable choices. He conveyed this information to reporters during visits to three factories.

Sim mentioned that MITI aims to strengthen policies encouraging CKD assembly for EVs as part of efforts to localize the national automotive industry following the expiry of import duty exemptions for EV CBUs from July. The national automotive policy remains consistent in its focus on developing the domestic value chain and reducing dependence on imported CBU EVs, which do not generate significant value for the local economy.

He clarified that the reimposition of import duties, sales tax, and excise duties on CBU EVs is not a new tax but rather a return to the original tax structure after the expiry of the four-year incentive period. The policy encourages local assembly or CKD operations to encourage companies to establish manufacturing facilities in Malaysia, thereby localizing operations, setting up plants, and collaborating with local vendors to create jobs.

Previously, MITI announced that all imported CBU EVs would be subject to two key conditions beginning July 1: a revised minimum motor power requirement of 180kW (from the previous 200kW threshold) and a minimum cost, insurance, and freight (CIF) value of RM200,000.