Malaysia Restricts Import of Chinese Electric Vehicles!

Imports of electric vehicles priced within 200,000 Ringgit (approximately 75.15 million Korean Won) and with a maximum power output below 241 horsepower are prohibited. The policy aims to guide automakers to build factories locally for production!

Malaysian authorities are tightening import controls on Chinese electric vehicle companies led by BYD.

Malaysia's new car sales in 2025 reached 820,752 units, setting a new historical record. Previously, Indonesia had always held the top spot for Southeast Asian car sales; before the pandemic, Indonesia's annual new car sales consistently exceeded 1 million units.

However, affected by the domestic economic environment, Indonesia's 2025 car sales dropped 7.2% from 856,000 units in 2024 to 803,000 units. In contrast, Malaysia's sales rose slightly by 0.5% year-on-year, topping Southeast Asia's car market sales rankings.

Malaysian authorities have introduced two entry thresholds for imported electric vehicles: First, the vehicle's maximum power output must exceed 241 horsepower; Second, the selling price must exceed 200,000 Ringgit. Simply put, non-luxury electric vehicles are universally prohibited from being imported and sold.

Brands like BYD, which focuses on affordable small electric vehicles to grab market share, and Zeekr, whose main models are mid-size cars (Zeekr), will be directly impacted.

BYD currently has 7 models positioned in Malaysia, ranging from the entry-level Dolphin and Yuan PLUS (Atto 3) to the high-end Sea Lion 7 (Sealion 7), with all series starting prices below 200,000 Ringgit. Zeekr's main model, the Zeekr 7X, also has a starting price of less than 200,000 Ringgit and fails to meet import sales standards.

Zeekr 7X

Malaysia's restriction on importing Chinese electric vehicles aims to protect local automakers on one hand, and on the other, to force Chinese electric vehicle enterprises to invest and build factories locally. According to Malaysia's Ministry of Transport statistics, Chinese electric vehicles already occupy about 60% of the country's electric vehicle market share.

Malaysia also introduced restriction clauses for locally produced electric vehicles, providing dual protection for the local market: the minimum price for locally produced electric vehicles is 100,000 Ringgit, domestic sales share must not exceed 20%, at least 80% of production must be used for export, otherwise production is not allowed. Additionally, the policy mandates that the three core processes of welding, painting, and final assembly must be completed within Malaysia, thereby curbing the influx of large quantities of Chinese electric vehicles into the local market.

Following the European market, the Southeast Asian economic powerhouse Malaysia has also erected trade barriers against Chinese automakers, forcing Chinese electric vehicle enterprises to adjust their overseas sales strategies. It is reported that Malaysia's restrictive policies are beginning to show results, with some Chinese automakers such as Xpeng, MG, and Wuling planning to cooperate with local enterprises to implement complete vehicle production projects in Malaysia.