Revised EV rules to bolster Proton and Perodua from July 2026
The government’s tightened rules for imported electric vehicles will shield Proton and Perodua from cheaper foreign competition when the new policy takes effect on July 1, 2026.
Source: The Star · July 21, 2026 at 8:31 AM · AI-assisted report
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KUALA LUMPUR, 21 JULY 2026 —
PETALING JAYA — Malaysia will enforce stricter rules for imported electric vehicles (EVs) starting July 1, 2026, to bolster local automakers Proton and Perodua against cheaper foreign competition.
Market Impact
The revised policy requires imported EVs to have a minimum cost, insurance and freight value of RM200,000 and a power output of at least 180 kilowatts. While this limits affordable imported EV options, manufacturers can still participate through local assembly programmes.
Malaysia’s auto market resilient despite softer demand Industry data shows total vehicle sales in the first five months of 2026 fell 1.5% year-on-year to 315,600 units, due to fewer working days, plant maintenance shutdowns and weaker demand for Japanese brands. However, Proton’s sales surged 39.6% year-on-year, driven by new models like the Saga replacement and e.MAS range, while Mazda’s sales rose 35.6% following the launch of a lower-priced variant.
Policy aims to support national carmakers Hong Leong Investment Bank (HLIB) Research noted Proton has gained an early lead in EVs with its e.MAS models, while Perodua’s upcoming QV-E model is priced at RM63,500 under a battery leasing programme or RM87,500 for outright purchase. The policy shift is expected to further strengthen their market position.
Outlook remains positive despite short-term challenges HLIB Research projects 2026 total industry volume to hold steady at 780,000 units, supported by new model launches, low interest rates and ongoing promotions. The revised EV rules are seen as a strategic move to sustain growth in Malaysia’s automotive sector.