Claims that all electric vehicles will become more expensive are inaccurate, he said.

Reasonably priced EVs will be available through local assembly of completely knocked-down (CKD) packs. The CKD strategy would ensure EVs remain affordable within the RM100,000 to RM200,000 price range, he said.

He said the price increases would affect only the premium EV models that are fully imported as completely built-up (CBU) units, particularly certain luxury brands that do not have sufficient sales volume to justify local assembly.

The locally assembled EV segment will continue offering more affordable options such as the Proton e.MAS, Perodua’s QV-E and Chery, he said.

“Other Chinese brands such as Zeekr and several others are also planning local assembly operations in Malaysia. Therefore, claims that all EVs will become expensive are inaccurate, as consumers will still have many affordable choices,” he told reporters after visiting three factories here today.

Sim said the ministry intends to strengthen policies encouraging local-assembly of EVs as part of efforts to localise the automotive industry following the expiry of import duty exemptions for EVs. Fully imported EVs do not generate significant value for the local economy, he said.

“The reimposition of import duties, sales tax and excise duties on CBU units is not a new tax, but rather a return to the original tax structure after the expiry of the four-year incentive period,” he said.

All imported EVs would be subject to two key conditions from July 1: a revised minimum motor power requirement of 180kW (from the previous 200kW threshold), and a minimum CIF value of RM200,000.