Minimum price cap of RM100k for CBU electric vehicle is short term, market will liberalize, open after 2025 – Tengku Zafrul

In Budget 2023, it was announced that the current import duty and excise exemption for imported battery electric vehicles (BEVs) (CBUs) have been extended until December 31, 2025. that is originally scheduled to end on December 31, 2023before being expanded in Prepare the first Budget 2023 to December 31, 2024.

While the import duty and excise tax exemption for CBU BEVs benefits buyers, it only benefits those on the higher end of the scale, because no imported BEVs with a floor price below RM100,000 can be sold in Malaysia until the end of the duty-free period.

This condition is listed specifically for electric vehicles imported under the Ministry of Investment, Trade and Industry (MITI). Guide to requesting an approved franchise license (AP) for 2023. That way, you can forget about things like cheap electric cars like weapon will soon enter our market for about 50-60 thousand RM. Likewise, the Dolphin BYDpreviously rumored to be coming for less than RM100k.

While this may seem counterproductive given the government’s efforts to increase electrification in the country, the move is well-intentioned, very much aimed at protecting trade in the short term. However, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said that this timeframe is very much defined.

“Currently, electric cars priced below RM100,000 and electric motorcycles under RM12,000 cannot be sold in Malaysia. We can’t do this forever, so only 2025. Then we have to open up,” he said on the sidelines of the conference. Launching Tesla Supercharger Station at Pavilion KL Last Wednesday, the day before Brand Launch domestic.

He said the condition was put in place to allow local players to get ready for electrification. Although not specifically mentioned in the document, this move essentially prevents imported cars from affecting the locally assembled car market in the sub-RM100,000 price segment.

“We are giving them (local carmakers) time to prepare for electric vehicles. There have been questions about why we don’t liberalize faster, but we have to look at the big picture to protect our local auto industry for a while to have a fair transition, because it involves a lot of jobs, from jobs to suppliers,” he said. paultan.org.

“I hope by 2025 our local companies have transformed, because the technology of Tesla and the Chinese automakers have shown that they are ready,” he said. He added that mass electrification would make it possible for the country to achieve its net-free goal sooner.

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