Have all automotive statistics at your finger tips:
Passenger cars, commercial vehicles and two-wheelers.
Asian markets
Thailand, Malaysia, Indonesia, Vietnam, Philippines, Singapore, Brunei, China, Hong Kong, Taiwan, Korea, Japan, India, Pakistan, Sri Lanka, Australia and New Zealand.
Detailed
Make, Model, Version
Updated monthly
ASIAN
TWO-WHEELER DATA
NEW MODEL RELEASES, PRICES, SPECIFICATIONS, SALES, PARC
2500 Specifications & Prices
POPULATION DATA - PARC - ON THE ROAD - FLEET DATA
NEED TO KNOW HOW MANY
VEHICLES ON THE ROADS
IN ASIA?
UNITS IN OPERATION (UIO) - VEHICLES IN USE (VIU)
Subscribe to Automotive NEWS
Malaysia delays revised CKD vehicle excise duty framework to end-2026
Paul Tan, 1 July '26Headlines 1 July '26
- Tata Motors prepares for UK entry, expands capacity to support growth
- GWM begins nationwide deliveries of all-new Haval H7
- GIIAS 2026 to showcase EVs, dozens of new launches
- Chery to expand local plant for V23, Q EV production
- Paramount Motors to unveil four new Wuling EV models at NAIMA Mobility Expo
- Governments sign MoU on EV batteries, charging infrastructure
After years of repeated postponements, the implementation of the revised open market value (OMV) excise duty framework for completely knocked down (CKD) vehicles has once again been deferred, extending regulatory uncertainty for automakers in Malaysia.
The revision was originally scheduled to take effect at the beginning of 2026 and was expected to have only a minimal impact on CKD vehicle prices. However, after the Ministry of Finance (MoF) postponed its implementation by six months to July 2026 to allow for the finalisation of calculations, the PU(A) 402/2019 Excise Tax Regulations (Determination of Value of Locally Produced Goods for Excise Tax Purposes) have now been deferred for a further six months, pushing implementation to the end of 2026.
In a letter sent by the MoF to the Malaysian Automotive Association (MAA) on June 26th, the ministry stated that the implementation of the OMV framework will now be deferred until December 31st, 2026. Consequently, no additional excise duty will be imposed on the cost of sales, general and administrative expenses, or the profit component of CKD vehicles until that date.
The additional timeframe is intended to allow the ministry and relevant stakeholders to finalise their calculations. In January, MAA President Mohd Shamsor Mohd Zain stated that further refinement was required because different original equipment manufacturers (OEMs) involved in CKD operations used different methods of declaring their business activities.
On June 30th, he reiterated that this remains the reason for the implementation being postponed until December. "The reason for the extension is to finalise all calculations and ensure that the proposal is fair, and that everyone is managed on a level playing field," he told media sources during a telephone interview. As previously indicated, the new method is expected to have "very little or no impact" on CKD vehicle pricing, and that position remains unchanged, he further added.
The OMV/402 framework has undergone multiple implementation delays. Gazetted on the final day of 2019, the revision introduced a new methodology for calculating a CKD vehicle's OMV, which influences the amount of tax payable and, consequently, its selling price.
Defined as the final ex-factory market value of a CKD vehicle before excise duties are imposed, the OMV primarily comprises the cost of the CKD pack, manufacturing and component costs, as well as assembly and administrative charges. This differs from the valuation method used for completely built-up (CBU) vehicles, whose prices are based on Cost, Insurance and Freight (CIF) values, upon which import and excise duties are levied.
The revision seeks to introduce additional calculations into the valuation framework by expanding excise duties to include non-manufacturing costs associated with vehicle sales. This would also incorporate related elements such as marketing, design work, administrative expenses, and profit, all of which could contribute to higher CKD vehicle prices.
To date, however, any potential impact arising from the OMV/402 framework has not been passed on to consumers. The regulations were originally scheduled to come into force in 2020, but 22 days into that year, the MAA announced that the Ministry of Finance had deferred implementation until 2021.
By the end of 2020, the implementation had been deferred again. Subsequently, the MAA's appeal to the government in 2022 for a further postponement resulted in a two-year extension until December 31st, 2024. This was followed by another deferment to December 31st, 2025, then to July 2026, with the latest announcement extending the implementation deadline to the end of 2026.
Continued delays affect corporate planning, forecasting, and operational decision-making. Uncertainty also remains regarding the extent of any future pricing increases. The government has stated that the OMV/402 revision for CKD vehicles will not affect 90% of Malaysians, particularly those within the B40 and M40 income groups. Further information on the matter is expected by the end of the year, unless the implementation timeline is revised again.
The revision was originally scheduled to take effect at the beginning of 2026 and was expected to have only a minimal impact on CKD vehicle prices. However, after the Ministry of Finance (MoF) postponed its implementation by six months to July 2026 to allow for the finalisation of calculations, the PU(A) 402/2019 Excise Tax Regulations (Determination of Value of Locally Produced Goods for Excise Tax Purposes) have now been deferred for a further six months, pushing implementation to the end of 2026.
In a letter sent by the MoF to the Malaysian Automotive Association (MAA) on June 26th, the ministry stated that the implementation of the OMV framework will now be deferred until December 31st, 2026. Consequently, no additional excise duty will be imposed on the cost of sales, general and administrative expenses, or the profit component of CKD vehicles until that date.
The additional timeframe is intended to allow the ministry and relevant stakeholders to finalise their calculations. In January, MAA President Mohd Shamsor Mohd Zain stated that further refinement was required because different original equipment manufacturers (OEMs) involved in CKD operations used different methods of declaring their business activities.
On June 30th, he reiterated that this remains the reason for the implementation being postponed until December. "The reason for the extension is to finalise all calculations and ensure that the proposal is fair, and that everyone is managed on a level playing field," he told media sources during a telephone interview. As previously indicated, the new method is expected to have "very little or no impact" on CKD vehicle pricing, and that position remains unchanged, he further added.
The OMV/402 framework has undergone multiple implementation delays. Gazetted on the final day of 2019, the revision introduced a new methodology for calculating a CKD vehicle's OMV, which influences the amount of tax payable and, consequently, its selling price.
Defined as the final ex-factory market value of a CKD vehicle before excise duties are imposed, the OMV primarily comprises the cost of the CKD pack, manufacturing and component costs, as well as assembly and administrative charges. This differs from the valuation method used for completely built-up (CBU) vehicles, whose prices are based on Cost, Insurance and Freight (CIF) values, upon which import and excise duties are levied.
The revision seeks to introduce additional calculations into the valuation framework by expanding excise duties to include non-manufacturing costs associated with vehicle sales. This would also incorporate related elements such as marketing, design work, administrative expenses, and profit, all of which could contribute to higher CKD vehicle prices.
To date, however, any potential impact arising from the OMV/402 framework has not been passed on to consumers. The regulations were originally scheduled to come into force in 2020, but 22 days into that year, the MAA announced that the Ministry of Finance had deferred implementation until 2021.
By the end of 2020, the implementation had been deferred again. Subsequently, the MAA's appeal to the government in 2022 for a further postponement resulted in a two-year extension until December 31st, 2024. This was followed by another deferment to December 31st, 2025, then to July 2026, with the latest announcement extending the implementation deadline to the end of 2026.
Continued delays affect corporate planning, forecasting, and operational decision-making. Uncertainty also remains regarding the extent of any future pricing increases. The government has stated that the OMV/402 revision for CKD vehicles will not affect 90% of Malaysians, particularly those within the B40 and M40 income groups. Further information on the matter is expected by the end of the year, unless the implementation timeline is revised again.