Malaysia will implement new regulations for pure electric vehicles (CBU vehicle imports) starting from July 1, 2026, requiring imported electric vehicles to have a motor power of ≥180kW (about 240 horsepower) and a declared CIF price of ≥ 200,000 ringgit (about 330,000 RMB). Low-cost entry-level electric vehicles represented by BYD Seagull (55kW) cannot enter the Malaysian market through vehicle import because they do not meet the power threshold.

Policy purpose and impact

Protect local industries: Malaysia's low-cost scooter market is monopolized by Proton (technical support from Geely) and Perodua (technical support from Daihatsu). The threshold is intended to gain development time for local brands and prevent low-cost China electric vehicles from impacting the mid-to-low-end market. Short-term market gaps: low-priced pure tram models have been delisted, and mid-to-high-end imported tram models that meet the new regulations have high prices (terminals are expected to exceed 300,000 ringgit). Consumers with limited budgets have been forced to return to buy Japanese fuel vehicles.

The direction of car companies 'response

The import roads for complete vehicles are basically blocked, and the government intends to force car companies to switch to local CKD/SKD assembly (build factories or find local foundries to cooperate) to drive local employment and new energy industry chains.

Newly built wholly-owned factories face stricter conditions (such as a local sales cap of about 20%, an export-oriented 80% production capacity, including welding, assembly and coating processes, etc.). Some China brands choose to borrow existing local production lines for cooperation and assembly to circumvent restrictions.

Article Views

It is believed that the market moat formed by relying on policy protection will eventually be broken by technological progress. China car companies need to adapt to the transformation from low-cost travel to localized and deep cultivation when going abroad, and adjust their sailing strategies in the face of setbacks.

Source: Leading the way to the sea by Gaoshen's car

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