TA Research said Sime Darby could face some “near-term headwinds” given its exposure to BYD’s imported EV line-up in Malaysia.
“Most BYD models currently sold locally may not fully meet Miti’s revised CBU EV import requirements,” it said in a note today.
The ministry of investment, trade and industry (Miti) said yesterday a minimum cost, insurance, and freight (CIF) value requirement of RM200,000 will be imposed on imported completely built-up (CBU) EVs effective July 1, 2026.
In addition, the minimum motor power limit of these vehicles will be revised to 180 kilowatts (kW) and above from 200kW previously.
“For example, (BYD’s) Atto 3 reportedly delivers around 150kW of motor output, below the revised minimum requirement of 180kW, while its pricing also remains below the RM200,000 threshold.
“As a result, lower-powered and lower-priced imported EV models may face reduced eligibility under the revised framework beginning July 2026,” it said.
However, TA stated the longer-term impact could be mitigated if BYD accelerates localisation and completely knocked-down (CKD) assembly plants in Malaysia.
TA kept its “sell” call on Sime Darby with a target price of RM2.10. At the time of writing, the stock was down 3 sen or 1.4% at RM2.18, valuing the group at RM14.86 billion.
The updated regulations follow the expiry of a four-year special exemption period under the franchise Approved Permit (AP) scheme which ended on Dec 31, 2025, after which the policy reverted to its standard requirements.
Without the exemption, CBU EVs will be subject to import duty, excise duty and a 10% sales and service tax (SST), which are applied sequentially on top of the vehicle’s CIF value, significantly increasing the final retail price.
The group’s automotive arm, Sime Darby Motors, is the official and exclusive distributor of BYD vehicles in Malaysia. Its subsidiary Beyond Auto manages the sales, distribution, and aftersales services for BYD in the country.
Sime Darby Motors unveiled its first BYD EV in the Malaysian market – the Atto 3 – in December 2022.
News reports then said Sime Darby would invest RM500 million to establish a wide network of BYD showrooms to serve the country’s growing appetite for EVs.
Chinese automaker BYD is considered the world’s largest manufacturer of EVs, having surpassed Tesla in total sales and production.