PEKEMA Assures Buyers That Remaining Port Stocks Will Keep Budget EVs Alive For A Bit Longer

If you've been losing sleep over the Ministry of Investment, Trade and Industry's (MITI) massive bombshell regarding fully imported (CBU) electric vehicles, take a deep breath. You don't necessarily have to rush to a showroom tomorrow morning with a panic-induced booking form.

Following the government's announcement that a strict new RM200,000 CIF value floor and a 180kW minimum motor power requirement will kick in on July 1, 2026, the Malay Vehicle Importers and Traders Association of Malaysia (PEKEMA) has stepped forward with some vital reassurance for regular car buyers.

PEKEMA President Datuk Mohamed Nazari Noordin

PEKEMA President Datuk Mohamed Nazari Noordin has assured the public that existing stockpiles, including units currently sitting at local ports, cars already inside transit ships, and current dealership inventories, are highly likely to last until the end of the year.

This means the current wave of highly popular, entry-level imported EVs can still be purchased at their current tax-free rates for a little bit longer.

The Technical Reality: Why the "Honeymoon Phase" is Ending 

While MITI says the new rules are about building the local ecosystem, it perfectly shields local models like the e.MAS 7 from cheap overseas competition.

To understand why PEKEMA's assurance is such a big deal, we have to look at the massive policy wall dropping this July.

MITI confirmed that the special four-year tax exemption period under the franchise Approved Permit (AP) system officially wrapped up at the end of last year. From July 1 onwards, the game changes completely. Every new CBU import must meet two strict baselines:

• Minimum CIF Value of RM200,000: "CIF" stands for Cost, Insurance, and Freight, the price of the vehicle before local taxes and dealer markups are applied.
• Minimum Motor Output of 180kW (245 PS): A power baseline specifically designed to phase out smaller, lower-output commuter EVs.

When you run the math on a vehicle with a baseline port value of RM200,000 and stack the returning cumulative taxes (30% import duty for non-FTA regions, 10% excise duty, and 10% SST) alongside standard distributor and dealer margins, the final showroom price floor instantly rockets past the RM300,000 mark.

This effectively bans future imports of mid-tier consumer favorites like the base BYD Atto 3, BYD Dolphin, GWM Ora Good Cat, and MG4. If it's fully imported and under 180kW, it can no longer clear customs.

Read: RM300,000 Is The New Entry Level: 10+ Popular EVs That Won't Survive MITI’s July 1 Rule

PEKEMA: "We Must Protect Local Industry From Dumping" 

While consumers might feel the pinch, PEKEMA emphasizes that this high entry barrier is a painful but necessary medication to protect Malaysia’s long-term automotive ecosystem.

Datuk Mohamed Nazari noted that without these guidelines, Malaysia was facing a massive risk of becoming a strategic "dumping ground" for excess global EV inventories, particularly from China, where massive domestic manufacturing subsidies and oversupply have caused localized price crashes.

"Some models that should be sold at higher prices are being offered much cheaper due to oversupply. Therefore, the government needs to protect the local industry from dumping,” Nazari bluntly explained.

By locking out cheap CBU imports, foreign brands are forced to make a choice: either abandon the high-volume Malaysian mass market entirely, or aggressively invest in building local assembly (CKD) manufacturing hubs right here in regions like Rawang or Tanjung Malim.

Read: MITI Dropped New EV Rules, But BYD Says "We're Not Going Anywhere"

The 12-to-24 Month "EV Drought" 

What does this mean for the everyday consumer looking to go green over the next couple of years? PEKEMA predicts that the local automotive landscape is officially splitting into two very distinct categories:

• The Luxury CBU Market: Premium, high-performance electric vehicles retailing comfortably above RM300,000.
• The Affordable CKD Market: Mass-market, locally assembled models retailing between RM100,000 and RM200,000.

However, shifting the market to local assembly will take time. PEKEMA warns that because of this transition, EV options in certain segments will temporarily shrink in the short term.

The good news? Datuk Mohamed Nazari Noordin assures buyers that this is just a temporary phase, predicting that more affordable, locally assembled models will make a major comeback within the next 12 to 24 months as production lines expand.

The affordable space will eventually bounce back with an abundance of localized options once foreign partnerships mature, but until those factory lines fire up, the remaining port stock represents the absolute final call for entry-level imported electric mobility.

If you want an affordable EV without waiting two years for local CKD models to fill the void, tracking down current clearing inventory before December might be your best strategic move.

Source: BH