Malaysia has tightened import rules for fully assembled electric vehicles (CBU). As of July 1, 2026, new requirements have come into force in the country, which effectively restrict the import of many popular models from Chinese manufacturers.
According to the new rules of the Malaysian Ministry of Investment, Trade and Industry (MITI), an imported electric vehicle must simultaneously meet two criteria. Its CIF value (cost including delivery and insurance) must be at least 200,000 Malaysian Ringgit (about 3.8 million rubles), and the power of the power plant must be at least 180 kW (241 hp).
Since the final price of a car includes taxes, logistics, and dealer markups, most models that meet these requirements will be significantly more expensive than the established threshold. The changes will primarily affect Chinese brands, which have actively developed sales through relatively affordable electric vehicles.
According to the Malaysian Road Transport Department (JPJ), in 2025, Chinese manufacturers (excluding the Geely-owned Proton brand) controlled about 60% of the market for new energy vehicles. However, many of their models will now not be able to be supplied to the country.
For example, BYD's entire current lineup in Malaysia costs less than 200,000 Ringgit (3.8 million rubles), and models such as the Dolphin and the basic version of the Atto 3 additionally do not meet the minimum power requirement. A similar situation has arisen with the Zeekr 7X and Chery Omoda E5.
One way to circumvent the restrictions could be local assembly, but here too the authorities have introduced additional conditions. For new production projects approved after September 1, 2025, there is a requirement to export at least 80% of the manufactured vehicles, and domestic sales are limited to 20% of the production volume. In addition, body welding, painting, and final assembly must be carried out directly in Malaysia.
These requirements complicated the implementation of the BYD plant project in Tanjung Malim. Experts believe that the mandatory export of 80% of products is poorly compatible with the company's existing production facilities in China, Thailand, and Indonesia.
At the same time, individual manufacturers have found an alternative solution. Leapmotor has already begun local assembly of the C10 model at the Stellantis plant in Gurun, and Xpeng has launched production of the right-hand drive version of the G6 in cooperation with EPMB. Since these projects use existing production sites, they are not subject to the new restrictions.
The Malaysian authorities explain the changes by the desire to attract higher quality investments, develop local industry, and expand the national automotive component supply chain.