Last week, Toyota shocked the Malaysian auto scene by introducing not one, not two, but three full EVs. This, from a brand that is perceived by many as swimming against the EV current, banking instead on its signature hybrids.
For many, the second shock was sticker shock. The most affordable of the EV trio is the Toyota Urban Cruiser, a B-SUV CBU import from India with an RRP of RM198,000 – that’s double the price of a BYD Atto 2. The rebadged Suzuki eVitara actually makes the RM220k bZ4X facelift looks great value, as the CBU Japan EV is significantly larger and more advanced. Still, the bZ4X is pricier than the top-spec BYD Sealion 7. The Thai-made Hilux EV is yours for RM226,300.
For a car-buying population used to tax-free EVs, often doubled down with Chinese pricing, UMW Toyota Motor’s EV prices seem outrageous. But as tax-free Langkawi prices show, they’re not mad, it’s just taxes.
The Urban Cruiser’s price in paradise is RM133,600, which means that Peninsular Malaysia pays RM64,400 or 48% more for the SUV. The bZ4X’s Langkawi price is RM153,000, which means we’re paying RM67,000 or 43.8% more on the mainland. These LGK prices, while far from a bargain, would have at least made the duo look competitively priced (more so for the bZ4X) against rivals from China.
How does Malaysia’s tax structure for CBU EVs work? Broadly, it’s 30% import duty + 10% excise duty + 10% sales tax. However, the first number, import duty, is influenced by free trade agreements (FTAs) that Malaysia has with other countries or trading blocs.
For instance, the tariff reduction schedule of the ASEAN-China Free Trade Agreement (ACFTA) prescribes that EVs entering our region will face 5% import duty, so it’s 5%+10%+10% for CBU EVs from China, a big advantage over the standard 30%+10%+10%.
Not all FTAs are the same, and the one ASEAN has with China is in stark contrast with the FTA we have with South Korea, for instance. Here, cars are in the ‘highly sensitive’ list so import duty remains at 30% for CBU EVs from Hyundai and Kia. These tariff barriers are erected to protect local industries from being overwhelmed by more cost competitive imports; however, it all boils down to the ‘give and take’ in negotiations. Clearly, China has scored a good one when it comes to EVs.
China is already the world champion in producing good EVs at the lowest possible cost; couple that with their favourable FTA and that’s why we have been getting so much electric car for the ringgit in recent times.
The Urban Cruiser’s production hub is India, and so it gets the full 30%+10%+10% tax slap. The bZ4X is made in Japan, so it’s likely that it kena 5% lower import duties for FTA reasons. Bear in mind that our calculations are a bit skewed because we’re looking at Langkawi prices that factor in extra delivery costs versus Peninsular Malaysia, but you get the point.
As for the Hilux EV, we’re only paying RM16,800 or 8% more than the Langkawi price of RM209,500. This can be explained by the fact that commercial vehicles are duty free, and we’re only paying the 10% sales tax for pick-up trucks.
So, whether it’s low or high, prices happen for a reason. That’s not to say that Toyota’s electric SUVs would automatically be fantastic value next to Chinese EVs without the tax factor (the Urban Cruiser still looks expensive at RM133,600), but they would at least be more competitive, price wise. Bear in mind that RRPs for most Chinese EVs are yet to be revised from their 2025 tax-free prices. It’s likely that new shipments will come with a new price.
Internally, the bZ4X looks fantastic value next to the recently-launched Harrier Hybrid. But then again, CBU ICE cars have a different, higher tax structure. We get the sense that UMWT tried its best here – the bZ4X’s Langkawi price is very close to the Honda e:N1’s tax-free price. The latter is of course a smaller car with a smaller range, and it’s shipped from China instead of Japan.
Of course, all of this can change if UMWT decides to locally assembled the electric SUVs (the Hilux is already import duty-free), but would there be enough volume to warrant the significant CKD effort and investment? Now that we’ve given some context, what do you think?
Looking to sell your car? Sell it with Carro.
What about rm250k price floor for CBU EVs?
Why all India SUV have the same look
If you buy this, you are a m0r0n
Well if this priced with reasonable price, i wont take the C9 too. But again, its not happening. ;) dont say bad word to the ppl if they like it.. we live in the world full of choices, let them be.
You know, we could have obtained these cars at a much more reasonable price, but noooo….you have to support the livelihoods of allegedly 700,000 people (doubtful)
Madani Style sakau 60k++ tax per car too gready. reformasi my a$$ , worse than previous gomen.
need to consider our fellow malaysian working in auto industry…
then who consider the remaining 95% of fellow malaysian who need to pay crazy price just to buy a good car???
Remove the taxes and force scum like Perodoua to actually compete. Protectionism is for cronies.
All money goes into AP pocket cronies for decades yummy and still on and on no matter which support.
Malaysian Govt is staunch supporter of Trump’s tariff regime which is to impose high tariff to imports from other countries to protect local industries. Sama lah macam trump, to protect american manufacturer ….Make America Great Again….so our govt pun nak Make Malaysia Great Again…..pastu kalut bila trump impose high tariff to Msian products, you get what you sow lah…cakap tariff against free trade, padahal kita pun impose tariff ….2 X 5 sahaja macam trump!
I guess I will be using Budi95 as long as it’s still there.
Deswai, we must press the gomen to maintain Budi95 becos gomen already make too much money from car tax
The elephant in the room no one is talking about is, why didn’t UMWT bring in the Bz4X earlier? the car was launched in Europe in late 2021 ! the car was on display at the Shah Alam HQ in 2022. Toyota had all the time in the world to take advantage of the EV tax holiday in MY, but they believed that EVs would die off. Suddenly realizing they were left behind, they scrambled to do JV with China and release CDM models like the BZ3. This launch is just to tell people in MY, “hey we’re also in the EV game, but it’s OK if you don’t buy… we’re happy selling 80k ICE & hybrid cars to you”.
Because Malaysian automotive marketing culture is like that.
Classic example: ETCM and Nissan, and eventually and/or already all of the chinese brands under them.
Latest example: QV-E (A perfectly fine car) with their stupid BAAS system (Could have worked, but everything last minute and screwed up)
QVE isn’t a great car to begin with. Putting the price and baas aside, the tech is very2 lacking. Heck not even rear AC vent. The rear is cramped and not to mentioned the part vendor are mostly Chinese and not local. Even if it’s priced exactly like emas 5 it’s no competition at all
@Danny, please change the title of the article to “Toyota Urban Cruiser and bZ4X EVs too expensive? It’s the PROTECTIONISM – they’re much cheaper in tax-free Langkawi”
India is not open to our P1 nor P2. So import duty of 30% is fair. Unless, India have FTA that is open to lower import duty for both ways, we wont see favorable exchange of vehicles between India and Malaysia.
India have big market for Saga and Persona…
Want to avoid tax? Speak to Tesla to get permission to slap a Tesla badge on the car…
sometime i just wonder who control this car price? government or manufacture? why chinese auto maker can sell for lower price but Japanese marque sell for higher
bcoz jepunis r greedy
even without tax still cannot compete with chinese brands in term of price or quality offered. at the moment, ev = tesla / chinese brands
One thing we need to bear in mind – UMWT is under Sime Darby ownership (that’s both Toyota/Lexus and Perodua).
Now remember again, what Sime Darby had done to Alfa Romeo from 90k Alfa Romeo 155 2.0S in 1998 to 200k 156 2.0 Selespeed in year 2001.
Hyundai Sonata from 110k (EF facelift in 2001) to 205k today.
And BMW all double the price from the days BMW Concessionnaire to the days of Auto Bavaria as main distributor (it is now left as multi dealership after BMW AG came in and set up its own subsidiary in the country, lead by a German CEO). I heard it was becaus AB was refusing to sell other than 3,5 and 7 series when BMW was planning to introduce X5, X3, X6, X1, and 4 series, and 6 series as well as Mini. And also later the 2 series, 8 series and 5GT, 3GT and 6GT.
So that’s what happening now to Toyota cars and Lexus.
toyota has been fleecing its customers for too long now with their over-priced, under-speced malaysian versions and you know what, because of the brand “toyota”, they actually got away with it – ppl better wake up to how much they been “played” …