CBU EV Sales Surge Ahead of Dec 31 Tax Deadline

Sales of fully imported electric vehicles (EVs) jumped 33% last month as buyers rushed to lock in tax-free prices ahead of the Dec 31 deadline, according to The Star.

The import and excise duty exemption for completely built-up (CBU) battery electric vehicles was first introduced under Budget 2022. The same budget also granted road tax exemptions for all EVs, including both CBU and locally assembled (CKD) models.

That road tax exemption will also end on Dec 31. From Jan 1, EV owners will be required to pay road tax based on the vehicle’s power output. At present, EVs in Malaysia enjoy full exemptions on import duty, excise duty and road tax, though sales tax still applies.

Latest Road Transport Department (JPJ) data shows CBU BEV registrations hit a record high of 4,282 units in Nov. This is the highest monthly figure recorded and marks a sharp increase from 3,211 units in Oct.

It was also the fourth consecutive month of growth since Aug, when registrations stood at 2,557 units, underlining the urgency among buyers ahead of the incentive expiry. Including both CKD and CBU models, total BEV registrations rose 24.7% month-on-month in Nov to 5,417 units, compared with 4,345 units in Oct.

For the year to date, the Proton e.MAS 7 is Malaysia’s best-selling EV, with 7,413 units registered up to the end of Oct. Proton has also confirmed that the upcoming e.MAS 5 has received 10,000 bookings so far.

Among non-national brands, BYD’s Atto 3 and Sealion 7 are the top-selling CBU BEVs, with 3,569 units each registered between Jan 1 and Nov 30. They are followed by the Tesla Model Y with 3,490 units and the Model 3 with 1,977 units.

Currently, five manufacturers have local CKD EV facilities in Malaysia: PRO-NET, Perodua, Volvo, Chery and Mercedes-Benz. Several others, including MG, Xpeng, BYD, Zeekr, iCaur, Leapmotor and TQ Wuling, have announced plans to begin CKD operations next year.

BYD Malaysia managing director Eagle Zhao said demand has risen sharply as the Dec 31 deadline approaches. He noted that BYD and Denza combined have recorded 12,872 units year-to-date in 2025, representing a 76% year-on-year increase.

The Atto 3 continues to be a key growth driver, posting a 30% year-on-year increase and maintaining its position as Malaysia’s best-selling EV SUV. Meanwhile, the Denza D9 has crossed 1,000 units sold since its launch earlier this year.

On potential price increases after Jan 1, Zhao said the impact is still being assessed as the Finance Ministry has yet to confirm the new tax structure. He noted that while the introduction of excise duty on imported EVs could lead to market-wide price adjustments, BYD and Sime Motors remain focused on keeping EVs accessible.