BATU KAWAN, May 8 — 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 said consumers will still have access to a wide range of reasonably priced EVs through completely knocked-down (CKD) models.

Sim said the CKD strategy would ensure 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, while the locally assembled EV segment will continue offering more affordable options such as the Proton e.MAS, Perodua’s QV-E and Chery.

“Chinese brands such as Zeekr and several others are also planning local assembly operations in Malaysia. Therefore, claims that all EVs will become expensive are inaccurate, as consumers will still have many affordable choices,” he told reporters after visiting three factories here today.

Sim said Miti aims to strengthen policies encouraging CKD assembly for EVs as part of efforts to localise the national automotive industry following the expiry of import duty exemptions for EV CBUs from July.

He said the national automotive policy remains consistent in focusing on developing the domestic value chain and reducing dependence on imported CBU EVs, which do not generate significant value for the local economy.

“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.

“That is why our policy encourages local assembly or CKD operations so that companies establish manufacturing facilities in Malaysia. We want them to localise operations, set up plants here and collaborate with local vendors to create jobs,” he said.

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. — Bernama