KUALA LUMPUR, March 10 — Several electric vehicle (EV) companies from China, including Zeekr, XPeng, and MG Motor, have planned to start local assembly activities in 2026 following the expiration of the tax relaxation and incentives for imported completely built-up (CBU) EVs.
The Investment, Trade, and Industry Ministry (MITI) said the plan takes into account the full tax exemption that continues to apply to locally assembled EVs until December 31, 2027.
Meanwhile, the end of the RM100,000 floor price relaxation period and the return to the original RM250,000 structure were appropriate to ensure a clearer transition from CBU imports to local assembly, and to protect investments by national companies and local vendors.
“In addition, the domestic EV ecosystem will continue to grow sustainably, and high-skilled job opportunities in the country can be created and preserved,” it said in a reply posted on the Parliament website today.
MITI was responding to Senator Datuk Mustafa Musa's query on the floor price determination for CBU EV cars and on Chinese EV companies' investment in the CBU market in Malaysia.
