Perodua EV coming end-2025 – tax-free incentives for CBU EVs, RM100k min price to end in Malaysia then?

Perodua ‘MyEV’ rendered based on the 2023 EMO Concept

Earlier this week, minister of international trade and industry Tengku Datuk Seri Zafrul Abdul Aziz revealed that mass production of Perodua’s EV is scheduled to start in end-2025.

According to the MITI minister, in line with the appointment of Perodua as the lead in production of affordable EVs under the New Industrial Master Plan 2030 (NIMP 2030), the Malaysian market leader has developed an electric-powered prototype in cooperation with an ‘international automotive company’. This has to be technical partner and shareholder Daihatsu, which is owned by Toyota.

With an affordable ‘EV rakyat’ in the market, will tax-free incentives for CBU imported EVs continue? There’s a likelihood that the tax-free window that we’re enjoying now will be shut, and the current RM100k minimum price barrier for imported EVs will be lifted.

Current RM100k minimum price for CBU EVs prevent the likes of Wuling’s Air EV to enter Malaysia

In Budget 2023, it was announced that import duty and excise duty exemption for CBU EVs had been extended to December 31, 2025. It was originally set to end in December 31, 2023 before being extended till end-2024 in first tabling of Budget 2023. There was no mention of a further extension in the most recent Budget 2024, so it’s end-2025 as things stand.

While duty exemption for CBU EVs is beneficial to buyers, it is only so to those in the upper spectrum of the scale, because no imported EV with a floor price under RM100,000 can be sold in Malaysia until the end of the exemption period. This condition was specifically listed for imported EVs under MITI guidelines on franchise approved permit (AP) requirements for 2023.

It’s a measure that’s both protectionist and anti-dumping, but it was designed to be temporary in nature. “We can’t do this forever, so it’s only up to 2025. Then, we have to open up,” Zafrul told us in July 2023, adding that the RM100k condition was put in place to allow national makes to get themselves ready for electrification.

Starting from RM100k, BYD’s Dolphin is currently the most affordable tax-free CBU EV in town

“We are giving them (local carmakers) time to prepare for EVs. There have been questions as to why we are not liberalising quicker, but we have to look at the big picture to protect our local automotive industry for a while so that there is a just transition, because it does relate to a lot of employment, from jobs to suppliers,” Zafrul told paultan.org.

“I hope by 2025 our local companies have already transitioned, because Tesla’s and Chinese carmakers’ technologies have already shown that they are ready,” he added.

Tax-free CBUs to kickstart the tech among early adopter motorists and boost market acceptance before closing it in favour of local production – reminds me of the tax-free window for CBU hybrid cars in the early-2010s. More on the upcoming Perodua EV here.

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