Malaysia Revises CBU EV Import Rules With New CIF Value And Motor Output Threshold

Malaysia will introduce revised conditions for the import of fully assembled electric vehicles under the Franchise AP scheme beginning July 1, 2026. The updated policy establishes two key requirements for imported completely built-up (CBU) EVs, including a minimum Cost, Insurance and Freight (CIF) value of RM200,000 and a revised motor output threshold of 180 kW. The latest adjustment lowers the previous power requirement from 200 kW, reflecting a recalibration of the country’s EV import framework while maintaining oversight of premium electric vehicle entries into the market.

The policy update was officially announced on May 6, 2026, by the Malaysia Ministry of Investment, Trade and Industry (MITI). According to the ministry, the earlier four-year exemption granted for Franchise AP imports of CBU electric vehicles expired on December 31, 2025. Following the conclusion of that exemption period, the import framework has reverted to the prevailing regulatory structure, with the newly revised conditions now becoming applicable to future imported EV models entering the market.

MITI clarified that vehicles already positioned within the supply chain before the implementation date will continue to receive transitional flexibility. Existing dealership inventories, vehicles currently stored at ports, and units already in transit can still be sold based on the earlier conditions until the available stock is fully depleted. This transition mechanism is intended to prevent disruption across dealerships, distributors, logistics operators, and customers who had already committed to vehicle procurement under the previous policy structure.

Key Conditions Under Malaysia’s Revised CBU EV Import Policy

The revised Franchise AP framework introduces updated import eligibility parameters for fully assembled electric vehicles entering the domestic market. Authorities indicated that the changes are intended to balance industry growth with long-term economic considerations and consumer protection objectives.

MITI stated that the revised measures are designed to support a transparent, balanced, and consistent business environment for the automotive sector. The ministry also emphasized that the framework aims to protect broader economic interests while preserving consumer rights and supporting sustainable industry development. By maintaining controlled import conditions for high-value EVs, policymakers are expected to continue encouraging long-term domestic automotive ecosystem growth alongside electrification expansion.

Frequently Asked Questions

What are the new requirements for importing CBU EVs into Malaysia?
The updated rules require imported fully assembled electric vehicles under the Franchise AP scheme to meet a minimum RM200,000 CIF value and a minimum motor output threshold of 180 kW from July 1, 2026. The revised framework replaces the earlier temporary exemption period that ended on December 31, 2025. Authorities stated that the policy supports balanced automotive industry development, maintains market transparency, and safeguards both economic interests and consumer protection objectives within Malaysia’s evolving electric vehicle ecosystem.

Can existing imported EV inventory still be sold under the previous rules?
Yes, existing inventories that entered the supply chain before the revised rules take effect can still be sold under earlier conditions. This includes dealership inventory, vehicles currently stored at ports, and units already in transit. The transition arrangement allows distributors and dealerships to clear existing stock without immediate disruption to operations or customer commitments. Malaysian authorities introduced this temporary continuation measure to ensure smoother market adjustment while implementing the updated Franchise AP framework for future CBU EV imports.