Price range 2026: No extension for tax-free CBU EVs – costs to go up by 30-100% from January 1, 2026?

The tabling of Price range 2026 has come and gone with none point out of an extension of import and excise obligation exemptions for CBU fully-imported electrical automobileswhich the nation has loved since 2022. Because of this as anticipated, costs of those vehicles will improve ranging from January 1, 2026.

Malaysia’s ministry of finance (MOF) confirmed the information in its Fiscal Outlook and Federal Authorities Income Estimates report. In it, the ministry stated it expects to gather RM12.79 billion subsequent yr, up from an estimated RM12.51 billion in 2025, partly because of the EV incentives expiring.

The federal government had twice prolonged the interval for tax-free CBU EVs – initially slated for the top of 2023, the deadline was then postponed to end-2024 throughout Price range 2023, then to end-2025 as soon as the present Madani authorities got here to energy quickly after. There was no point out of an extension in Price range 2025whilst trade gamers continued to push for it.

After all, there’s no surefire approach of figuring out how rather more costly CBU EVs can be subsequent yr, however Francis Lee, group CEO of Bermaz Auto that distributes the Xpeng model, has not too long ago stated he expects costs to go up by “at the very least 20 to 30% minimal.” Tesla has additionally marketed “a minimal of RM20,000 in financial savings” if consumers guide now, that means it anticipates costs rising by at the very least that quantity in 2026.

In the meantime, GWM Malaysia COO Roslan Abdullah Tild Day by day information we might see as a lot as a 100% improve, on condition that clients are anticipated to bear the brunt of the reinstated import tax (10 to 30% of the automotive’s worth) and excise obligation (50 to 100%). Compounding issues is the truth that highway tax will even be reapplied to EVs beginning subsequent yr.

Tax incentives will stay for CKD locally-assembled EVs till the top of 2027, which might even see a discount in costs as the present RM100,000 flooring worth can be eliminated for these vehicles. Main the cost are the nationwide carmakers – Proton has began manufacturing at its EV plant in Tanjong Malim, whereas Perodua can be launching its indigenously developed and produced mannequin by the top of the yr.

Apart from these two corporations, most mainstream manufacturers have dedicated to producing vehicles domestically, except BMW and Tesla. The latter is a part of the BEV International Leaders programme that grants its personal set of privileges, together with the power to amass an authorised allow (AP) with out the necessity for a neighborhood companion.

Some manufacturers, similar to Volvo and Mercedes-Benz, already produce at the very least a few of their EVs in Malaysia and will see no worth will increase into the brand new yr. Nonetheless, others similar to BYD and Xpeng anticipate to solely begin car manufacturing within the second half of 2026, so costs of their vehicles are anticipated to go up, at the very least for a number of months.

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