Proton, Perodua to benefit from revised EV policy

PETALING JAYA: The revised policy on completely built-up (CBU) electric vehicles (EVs) is expected to strengthen the competitive position of national original equipment manufacturers, particularly Proton and Perodua, due to tighter import requirements.

The Investment, Trade and Industry Ministry’s revised CBU EV policy, effective July 1, 2026, restricts imported EVs to models with a minimum cost, insurance and freight value of RM200,000 and a minimum power output of 180 kilowatt.

While the policy reduces the availability of affordable imported EVs, manufacturers can continue participating in the market through completely knocked down local assembly programmes.

Hong Leong Investment Bank (HLIB) Research noted Proton has already established an early lead in the EV segment through its e.MAS models, while Perodua recently revised the pricing of its upcoming QV-E model to RM63,500 under a battery leasing programme or RM87,500 for outright purchase.

Overall industry conditions appear to remain resilient despite softer industry volumes during the first five months of 2026.

Total industry volume (TIV) in the first five months declined 1.5% year-on-year to 315,600 units, mainly due to fewer working days, scheduled maintenance shutdowns at Perodua plants and weaker demand for major Japanese brands.

However, Proton recorded sales growth of 39.6% year-on-year, supported by the launch of the new Saga replacement model and the e.MAS range, while Mazda’s sales rose 35.6% following the introduction of the lower-priced Mazda3 1.5-litre variant.

HLIB Research expects 2026 TIV to remain resilient at 780,000 units, supported by new model launches, an accommodative interest rate environment and continued promotional campaigns.