Chinese EV Makers Plan CKD Assembly in Malaysia by 2026

Several major Chinese electric vehicle (EV) manufacturers are reportedly planning to start Completely Knocked Down (CKD) assembly operations in Malaysia as early as 2026. The key brands mentioned include Zeekr, XPENG, and MG Motor—all well-known for their advanced EV technologies and popular models in global markets.

This move comes as the government’s exemptions and tax incentives for fully imported (CBU) EVs are set to end, a step aimed at boosting the local EV market and encouraging a shift to local assembly. For Malaysian car buyers and the local automotive industry, this transition is expected to make EVs more accessible in the long run.

The Ministry of Investment, Trade and Industry (MITI) confirmed that these companies’ plans are driven by the full tax exemption for CKD-assembled EVs, which will remain in effect until December 31, 2027. This incentive makes Malaysia an attractive destination for EV manufacturers looking to expand in Southeast Asia.
Alongside this, MITI clarified that the floor price for fully imported (CBU) EVs will revert to its original RM250,000 per unit, after the RM100,000 floor price exemption ends. This decision is to ensure a clear transition from CBU to CKD models, protecting local automotive investments and supporting local vendors in the EV ecosystem.

“This approach is crucial to safeguard investments by national automotive companies and local vendors, while promoting the sustainable development of Malaysia’s domestic EV ecosystem. It will also create and retain high-skilled jobs in the country,” MITI stated in a written reply to Parliament.

The clarification came in response to a question from Senator Datuk Mustafa Musa, who sought details on the CBU EV floor price and Chinese EV makers’ CKD investments in Malaysia ahead of 2027. This development reaffirms Malaysia’s position as a key destination for global EV manufacturers looking to tap into the ASEAN market.