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FULLY imported electric vehicles already brought into Malaysia before Dec 28 this year will still qualify for import and excise duty exemptions, even though the incentive is set to end from Jan 1, 2026, according to the Malaysian Automotive Association.
MAA president Mohd Shamsor Mohd Zain said the delivery period for completely built-up electric vehicles could be extended, stressing that the key requirement for tax exemption is the timing of entry into the country, not the delivery schedule.
“The delivery period has nothing to do with the tax exemption. What matters is that the stock must have entered the country this year before Dec 28, 2025, and be declared to customs,” he said in an exclusive interview with Buletin Utama.
The tax incentive for imported EVs, first introduced in 2022, has already been extended twice. Mohd Shamsor said the planned termination of the exemption has driven a sharp increase in EV sales in November and December, as consumers and distributors move to secure purchases before the deadline.
He added that the automotive industry is expected to post a strong performance this year, with MAA projecting the total industry volume to exceed 800,000 units. This growth, he said, has been supported by more aggressive promotional activity, particularly in the fourth quarter.
“We are hearing that many players from other brands are interested in producing electric vehicles locally. This will accelerate technological progress in the domestic market,” he said.
The government, meanwhile, is expected to benefit fiscally from the end of the EV CBU tax exemptions. It has been reported that federal revenue collection will rise by 2.3 per cent to RM12.8 billion next year following the withdrawal of the incentive.
Industry observers see the move as a transition phase aimed at encouraging local EV assembly and manufacturing, while gradually reducing reliance on fully imported electric vehicles. - December 21, 2025
