Malaysia’s nascent electric vehicle market may be decimated before it gets up to speed, as business experts warn of a sharp drop in demand and delay in the renewable energy transition if the government imposes strict price curbs on imported units from July, in a move to protect the country’s vehicle makers.
The ministry of investment, trade and industry (Miti) on Wednesday announced that from July 1, it will only allow the sale of imported EVs that have a cost, insurance and freight (CIF) value of at least 200,000 ringgit (US$51,000) and a minimum power output of 180kW.
The move effectively bars the sale of the vast majority of imported EVs – predominantly Chinese marques – from Malaysia’s market once the policy kicks in, although an exception is granted for existing stocks and units in transit.
Advertisement
The ministry said the move was aimed at supporting the development of the country’s automotive industry and protecting Malaysia’s economic interests and consumer rights.
The immediate effects of the new policy, however, are likely to land far off the mark, according to business experts.
Advertisement
“The shock to the system will mean that consumers who have been on the fence about EVs will either buy before the July ban kicks in, or put off buying EVs altogether,” said Timothy Wong, a senior analyst with government affairs consultancy BowerGroupAsia.