Perodua, Dealers And Suppliers Back MITI’s CKD Policy Clarification As EV Ecosystem Evolves

Perodua, together with its dealer and supplier associations, stated that they welcome the Ministry of Investment, Trade and Industry’s (MITI) recent clarification on the National Automotive Policy (NAP) and the conditions for new completely knocked down (CKD) entrants, describing the move as an important step in strengthening Malaysia’s automotive ecosystem.

In separate statements issued, Perodua, the Perodua Dealers Association (PDA) and the Perodua Suppliers Association (P2SA) all expressed support for MITI’s non-discriminatory approach towards local vehicle assembly, saying the policy provides much-needed clarity and confidence for businesses across the automotive retail and supply chain sectors.

Perodua Welcomes Clear NAP Direction

Perodua said it appreciates MITI’s clarification of its position on the National Automotive Policy (NAP) and the intended purpose of encouraging investments that benefit the country.

“By having guidance in accordance with NAP, the automotive industry’s ecosystem will be further strengthened and creates significant economic spillover, ultimately fostering shared prosperity for all stakeholders,” the company said.

According to Perodua, the broader industry roadmap supports long-term sustainable employment, infrastructure investment, human capital development, research and development (R&D), technology sharing, and the growth of local entrepreneurs through vendor and dealer participation.

The company also highlighted the role of the Next Generation Vehicle (NxGV) vision under the NAP, saying it will bring greater innovation and value to Malaysians through improved mobility solutions.

This includes a wider range of services tailored to customer preferences, as well as add-on mobility features such as enhanced safety systems and mobile integration enabled by internet-based technologies.

Perodua added that the existing policy framework, vision and roadmap outlined by MITI serve as a comprehensive, transparent and consistent guide for automotive industry players.

Dealers Welcome Policy Clarity

The PDA said MITI’s consistent stance has been instrumental in helping independent dealers better plan their business strategies and future investments.

“The local automotive retail business has different challenges, but clarity offered by MITI has been a saving grace for the association,” the statement said.

Representing 200 local entrepreneurs across Malaysia, the association added that the consistency shown by MITI has allowed its members to expand operations while continuing to invest in social responsibility programmes. “The independent dealers feels that the consistency shown by MITI helps us to plan better and has assisted us to move in the right direction.”

The association also thanked MITI for its continued engagement with industry players and reaffirmed its commitment to work closely with Perodua to enhance customer offerings nationwide.

Suppliers Support Fair EV Assembly Conditions

Meanwhile, the P2SA said it fully supports MITI’s decision to apply high-volume local assembly conditions consistently across all brands, regardless of country of origin.

The suppliers’ group said this approach is critical in ensuring that the rapid expansion of the EV market does not weaken the existing domestic manufacturing ecosystem.

“By applying high-volume assembly conditions consistently across all brands-regardless of their country of origin-the Ministry is ensuring that the growth of the electric vehicle (EV) sector does not come at the expense of the existing local ecosystem.”

The association added that its members are prepared to support Malaysia’s transition towards e-mobility and sustainable transportation. “Our members are ready, eager and will continue to embrace the transition to E-mobility.”

Supporting Jobs, Investment And Industry Confidence

P2SA said the policy helps preserve years of investment made by local vendors in industrial capacity, workforce development and component technology.

According to the association, the move aligns with the objectives of the National Automotive Policy, particularly in three key areas:

• Strengthening the supply chain through collaboration between global brands and local vendors
• Ensuring fair competition among high-volume automotive players
• Supporting jobs across Malaysia’s established automotive vendor network

The association added that the policy ensures local assembly delivers meaningful economic value instead of serving as a final assembly touchpoint.

The statements come at a time when Malaysia’s automotive sector is undergoing a major transition, particularly with the rise of EVs and increased interest from foreign brands looking to establish CKD operations locally.

For long-established domestic players and their surrounding ecosystem of dealers and suppliers, regulatory clarity is increasingly important — not just for investment planning, but for long-term industrial sustainability.

CarTok Editor’s Note

The statements from the parties come at a time when Malaysia’s automotive sector is undergoing a major transition, particularly with the rise of Next Generation Vehicles / New Energy Vehicles and increased interest from foreign brands looking to establish CKD operations locally.

For long-established domestic players and their surrounding ecosystem of dealers and suppliers, regulatory clarity is increasingly important — not just for investment planning, but for long-term job security and industrial sustainability.

This matter is bigger than Perodua alone. MITI’s clarification sends a clear signal that Malaysia wants EV growth, but not at the expense of the local ecosystem that took decades to build. In an industry moving this quickly, policy certainty may be just as valuable as new product investment.