KATHMANDU: Malaysia has introduced stricter rules for importing completely built-up (CBU) electric vehicles, making it harder for many affordable Chinese EV brands to bring new models into the country, according to Malaysian media reports.
The new policy took effect on July 1. Under the revised rules, imported EVs must have a minimum Cost, Insurance and Freight (CIF) value of 200,000 Malaysian ringgit (around USD 29,400) and an electric motor producing at least 180 kW.
The move is expected to reduce imports of lower-priced models from brands such as BYD, Zeekr, and Chery. Popular EVs, including the BYD Dolphin, entry-level Atto 3, Zeekr 7X, and Chery Omoda E5, do not meet one or both of the new requirements. As a result, they can no longer be imported under the new framework.
However, vehicles that had already arrived in Malaysia or were in transit before July 1 can still be sold under the previous rules until the existing inventory is exhausted. This means the impact on buyers is expected to be gradual rather than immediate.
Chinese brands accounted for around 60 percent of Malaysia’s new energy vehicle market in 2025, excluding Proton. Most of their growth came from affordable EVs. The new policy shifts the focus towards higher-value vehicles and local manufacturing.
Malaysia has also tightened rules for new EV assembly projects. Factories approved after September 2025 must build vehicles priced above 100,000 ringgit (around USD 24000), complete key manufacturing processes locally, and export at least 80 percent of production. Only 20 percent of output can be sold in the domestic market.
The new conditions have reportedly slowed BYD’s planned CKD plant in Tanjung Malim. However, companies using existing production facilities, such as Leapmotor and Xpeng, can continue local assembly without the 80 percent export requirement. Locally assembled EVs will also continue to receive tax incentives until the end of 2027.
Industry analysts say the new policy may temporarily reduce choices in the affordable EV segment until more locally assembled models become available. Over the long term, it is expected to encourage investment, technology transfer, and the development of Malaysia’s EV manufacturing ecosystem.
For smaller markets like Nepal, the policy highlights the importance of gradually developing local EV assembly and supplier networks. However, Nepal still depends heavily on affordable imported EVs. A balanced approach that supports local production while maintaining consumer access is likely to be more practical.
