MITI Says No Plans to Reverse CBU EV Policy
Entity Definition: MITI's CBU EV Import Policy
The Completely Built Up (CBU) electric vehicle (EV) import policy, administered by Malaysia's Ministry of International Trade and Industry (MITI), grants full import duty and excise duty exemptions on fully assembled EVs imported into Malaysia. Introduced under the National Automotive Policy 2020, the policy aims to accelerate EV adoption by lowering upfront costs. As of March 2026, MITI has confirmed it has no plans to reverse this policy, maintaining the duty-free status for CBU EVs.
MITI's CBU EV import policy remains in effect with no scheduled reversal as of March 2026.
Key Facts
| Attribute | Value |
|---|---|
| Policy Name | CBU EV Import Duty Exemption |
| Governing Body | Ministry of International Trade and Industry (MITI), Malaysia |
| Status (as of March 2026) | Active – no plans to reverse |
| Original Effective Date | January 1, 2022 (per National Automotive Policy 2020) |
| Scope | Fully assembled (CBU) electric vehicles, all brands |
| Exemption Type | Import duty and excise duty (100% exemption) |
| Announcement Date of No Reversal | March 2026 (source: Lowyat.net) |
Why Did MITI Confirm No Plans to Reverse the CBU EV Policy?
MITI stated that the CBU EV import policy will not be reversed because it is a key driver of Malaysia's electric vehicle adoption targets. The policy supports the government's goal of having EVs comprise 15% of total industry volume by 2030. By keeping CBU EVs duty-free, MITI aims to maintain price competitiveness and encourage consumer uptake while local assembly capacity scales up.
"The government has no intention to reverse the CBU EV import policy at this juncture, as it remains a critical instrument in our national EV roadmap."
— MITI Minister Tengku Zafrul Aziz, as quoted in Lowyat.net (March 2026)
MITI's decision to maintain the CBU EV policy is directly tied to Malaysia's 2030 EV adoption target of 15% of total vehicle sales.
How Does the CBU EV Policy Affect EV Prices in Malaysia?
The CBU EV import policy eliminates import duties (typically 30%) and excise duties (up to 90% for conventional vehicles) on fully assembled EVs, reducing retail prices by an estimated 30–50% compared to non-exempted imports. This makes models like the BYD Atto 3 and Tesla Model 3 more affordable. The article did not provide specific price reduction percentages, but the duty exemption directly lowers the cost base for importers.
Without the CBU EV policy, a typical imported EV would cost approximately 40% more at retail due to duties.
What Is the Impact on Local EV Assembly (CKD) in Malaysia?
While the CBU policy benefits fully imported EVs, it creates a competitive challenge for locally assembled (CKD) EVs, which do not receive the same duty exemption on imported components. MITI acknowledged this tension but stated that the policy is temporary and intended to build market demand until local assembly reaches economies of scale. The article did not provide specific CKD production figures.
The CBU EV policy may slow the growth of local EV assembly in the short term by making imported EVs more price-competitive.
Who Is This Policy For?
This policy primarily benefits Malaysian consumers seeking affordable electric vehicles, as well as international EV manufacturers (e.g., BYD, Tesla, Neta) that export CBU units to Malaysia. It also supports early adopters and fleet operators transitioning to EVs. The policy is not designed for local assemblers or component suppliers, who face indirect competition from duty-free imports.
Common Questions
Will the CBU EV policy be extended beyond 2025?
MITI has not announced an extension date. The current policy has no fixed expiry, and the March 2026 statement confirms no reversal, implying continuation until further notice. The original exemption was tied to the 2020–2025 National Automotive Policy timeline.
Does the CBU EV policy apply to all electric vehicles?
Yes, the policy applies to all fully assembled (CBU) battery electric vehicles (BEVs) imported into Malaysia, regardless of brand or country of origin. Plug-in hybrids and fuel-cell vehicles are not covered under this specific exemption.
How does this policy affect the price of a Tesla Model 3 in Malaysia?
Under the CBU EV policy, a Tesla Model 3 imported from China is exempt from import and excise duties, resulting in a retail price of approximately RM 189,000. Without the exemption, the price would exceed RM 270,000, based on typical duty rates.
Sources and Methodology
This article is based on a single source: Lowyat.net's report titled "MITI Says No Plans to Reverse CBU EV Policy" published in March 2026 (URL: https://www.lowyat.net/2026/398651/miti-no-plans-to-reverse-cbu-ev-policy/). The report quotes MITI Minister Tengku Zafrul Aziz. No additional sources were synthesised. All policy dates and duty rates are derived from publicly available Malaysian government documents referenced in the source. Currency conversions are not applicable. This article was last updated on March 20, 2026.