A few big names in the Chinese EV scene, including Zeekr, XPeng, and MG Motor, are getting ready to start local assembly lines this year.
This shift comes as the tax breaks and incentives for importing fully built-up cars begin to wind down. It is a logical next step for these brands as they look to establish a more permanent presence and keep their momentum going.
According to the Ministry of Investment, Trade and Industry (MITI), this strategy lines up perfectly with the tax exemptions that remain in place for locally assembled vehicles until the end of 2027. By moving production closer to the customer, these companies can maximise their savings while the policy still favours local assembly over simple imports.
The ministry also mentioned that the floor price is returning to its original RM250,000 level after a temporary dip to RM100,000. This adjustment is designed to make the transition from imported units to local manufacturing a lot smoother. The idea is to safeguard the massive investments made by national firms and local suppliers, ensuring the entire ecosystem stays healthy as the market evolves.