Zeekr, XPeng, and MG Motor plan local EV assembly in Malaysia by 2026, aligning with the end of tax breaks for imported models to boost the domestic ecosystem.

KUALA LUMPUR: Several major Chinese electric vehicle manufacturers are planning to commence local assembly operations in Malaysia by 2026. This strategic move aligns with the expiration of tax incentives for imported completely built-up units.

Companies including Zeekr, XPeng, and MG Motor have outlined these plans according to the Ministry of Investment, Trade and Industry. The shift to local production will capitalise on the full tax exemption for locally assembled EVs, which remains valid until December 31, 2027.

MITI stated that the conclusion of the relaxed import rules is a necessary step. The policy change reinstates the original floor price structure for CBU EVs from RM100,000 back to RM250,000.

This adjustment ensures a clearer transition from imports to local assembly and protects investments made by national companies and local vendors. The ministry emphasised that the domestic EV ecosystem will grow more sustainably as a result.

High-skilled job opportunities in the country can be created and preserved through this localisation strategy. MITI provided this explanation in a written parliamentary reply posted online.

The ministry was responding to a question from Senator Datuk Mustafa Musa regarding CBU EV pricing and Chinese investment. The reply detailed the coordinated approach between policy timelines and corporate investment plans.

 The Sun Malaysia