BUSINESS

Malaysia Blocks Low-Cost EV Imports, Hitting Chinese Automakers

Published: Jul. 3, 2026 4:12 a.m. GMT+8

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The Kuala Lumpur International Motor Show in Malaysia. Photo: IC

Malaysia imposed stringent new import thresholds for fully assembled electric vehicles on Wednesday, a move that effectively blocks budget models from leading Chinese manufacturers including BYD Co. Ltd.

Effective July 1, the Ministry of Investment, Trade and Industry mandated that any completely built-up EV imported into the country must have a declared customs value of at least 200,000 ringgit ($49,019) and a motor output of no less than 180 kilowatts.

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Malaysia set minimum EV import values of 200,000 ringgit ($49,019) and 180 kW motor output, blocking budget Chinese models like BYD's Dolphin and Atto 3.
New local production rules require EVs priced above 100,000 ringgit and 80% export, halting BYD's assembly plant plans; Proton benefits as the national carmaker.
Chinese automakers seek workarounds via local partnerships, such as Leapmotor at Stellantis and Xpeng via a joint venture.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd., a leading Chinese EV maker, faces new Malaysian import thresholds (minimum 200,000 ringgit value, 180 kW power) that block its budget models like Dolphin and Atto 3. BYD led Malaysia's market in 2025 with 14,000 units sold but has stalled plans for a local assembly plant due to stringent export quotas.

Zeekr: According to the article, Zeekr, a Chinese EV brand, faces lockouts from Malaysia due to new import rules requiring EVs to have a customs value above 200,000 ringgit and motor output of at least 180 kW. Its popular models fail to meet these thresholds, blocking their import into Malaysia.

Chery Automobile: According to the article, Chery Automobile's popular models are affected by Malaysia's new import thresholds for fully assembled EVs, which require a minimum customs value of 200,000 ringgit and motor output of 180 kW. Like BYD and Zeekr, Chery faces lockouts from the Malaysian market under these restrictive regulations.

Geely: According to the article, Geely is a Chinese automaker that backs the Malaysian local brand Proton. Proton benefited from Malaysia's new EV import restrictions, which exempted locally produced vehicles, allowing it to overtake BYD as the country's top-selling EV brand in the first half of 2026.

Proton: Proton is Malaysia's national carmaker, backed by Geely. Exempt from new import rules due to local production, it capitalized on its budget-friendly e.MAS series to overtake BYD as the country's top-selling EV brand in the first half of 2026. The government aims to replicate Proton's industrial success.

Perodua: Perodua is a Malaysian national carmaker cited as a successful local peer to Proton. According to the article, the trade ministry aims to replicate Perodua's industrial success, as it anchors a supply chain supporting over 700,000 jobs. Perodua benefits from Malaysia's new EV import restrictions aimed at protecting domestic manufacturing.

Leapmotor: Leapmotor, a Chinese EV maker, began assembling its C10 model in June at a plant owned by partner Stellantis NV in Malaysia. This move is a workaround to bypass Malaysia's strict import thresholds and export mandates, allowing Leapmotor to enter the market without building a new factory.

Stellantis NV: According to the article, Stellantis NV is a partner of Chinese automaker Leapmotor. In June, Leapmotor began assembling its C10 model at a plant owned by Stellantis in Malaysia, as a workaround to avoid stringent import and export mandates on new EV production facilities.

Xpeng Inc.: According to the article, Xpeng Inc. rolled out its first locally assembled SUV in Malaysia through a joint venture with a domestic manufacturer, as a workaround to avoid new import restrictions on fully assembled EVs.

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What Happened When

First half of 2026：: Proton overtook BYD as Malaysia's top-selling EV brand, benefiting from exemption due to local production.

January 1, 2026：: Malaysia reinstated tariffs on fully assembled EVs, including a 5% levy for Chinese-made cars, and additional consumption and sales taxes.

June 2026：: Leapmotor began assembling its C10 model at a plant owned by partner Stellantis NV; Xpeng rolled out its first locally assembled SUV through a joint venture.

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