Electric vehicles (EVs) brought into Malaysia before Dec 28, 2025 will not lose their tax breaks, even though the exemption officially ends from Jan 1, 2026.
The Malaysian Automotive Association (MAA) said the key factor is when the vehicles entered the country and were declared to customs, not when buyers eventually receive them. This should come as a relief to customers still waiting for delivery.
According to The Vibe, MAA president Mohd Shamsor Mohd Zain said the exemption remains valid as long as the vehicles arrive before the cut-off date.
He explained that delivery schedules have no bearing on tax treatment, stressing that once a vehicle has been properly declared within the qualifying period, its status does not change.
The tax exemption for fully imported EVs was first introduced in 2022 and has already been extended twice. With its final expiry now confirmed, the industry has seen a rush in demand over the past two months as buyers and distributors move quickly to beat the deadline.
That late-year surge has helped lift overall industry performance. MAA expects total vehicle sales to cross 800,000 units this year, supported by stronger promotions and renewed consumer interest.
Mohd Shamsor also said more global automakers are showing interest in building electric vehicles locally, a shift that could bring new technology and investment into Malaysia’s automotive sector.
For the government, the end of the CBU EV tax exemption is expected to boost revenue. Reports suggest federal collections could rise by 2.3% to RM12.8 billion next year following the policy change.
Complete list of EVs in Malaysia and its corresponding NEW EV ROAD TAX rate.
Jan 1, 2026 will also mark the end of the EV road tax holiday, another incentive that has helped drive early adoption. Still, EV owners will not be returning to the old road tax structure.
In June 2024, Transport Minister Anthony Loke announced a new road tax system for EVs based on electric motor power. The revised rates are expected to be up to 85% lower than current charges, helping to soften the impact of the broader incentive rollback.
Taken together, industry watchers see these changes as part of a gradual reset — one that nudges the market away from fully imported EVs while setting the stage for local production and longer-term growth.
