China EV firms plan to start assembly in Malaysia this year, says Miti

China EV firms plan to start assembly in Malaysia this year, says Miti

It says the plan takes into account the full tax exemption that still applies to locally assembled electric vehicles until Dec 31, 2027.

zeekr
Electric vehicle companies from China such as Zeekr are looking at assembling their vehicles in Malaysia. (Sentinel Automotive pic)
KUALA LUMPUR:
Several electric vehicle (EV) companies from China such as Zeekr, XPeng and MG Motor have planned to start local assembly activities in 2026 following the expiration of the tax relaxation and incentives for imported completely built-up (CBU) EVs.

According to the investment, trade and industry ministry (Miti), the plan takes into account the full tax exemption that still applies to locally assembled EVs until Dec 31, 2027.

The ministry also said the end of the RM100,000 floor price relaxation period to the original RM250,000 structure was appropriate to ensure a clearer transition from CBU imports to local assembly and to protect investments made by national companies and local vendors.

“In addition, the domestic EV ecosystem will continue to grow sustainably, and high-skilled job opportunities in the country can be created and preserved,” the ministry said in a written parliamentary reply.

Miti was replying to a question from Senator Mustafa Musa on the floor price determination of CBU EV cars and the investment of Chinese EV companies in Malaysia.

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