In a statement, it said a final decision on the vehicle valuation method had yet to be made.

“The finance ministry, together with the investment, trade and industry ministry, and the automotive industry, are currently reviewing the vehicle valuation method to ensure that the imposition of tax is carried out in a fair, neutral, and consistent manner,” it said.

Concerns over potential price hikes arose following news reports about the automotive industry securing a final extension on the revision of excise duties for locally assembled (CKD) cars until Dec 31.

This was originally planned for implementation on Jan 1, 2020, but delayed three times due to concerns from the automotive industry.

The revision will use the open market value, which factors in both production and non-production costs when calculating a vehicle’s value.

Since more components are now taxable, Malaysian Automotive Association president Shamsor Zain reportedly estimated a 10-30% increase in CKD vehicle prices from 2026.

For example, he said a Perodua Myvi that currently costs RM50,900 could increase in price to RM55,900-RM65,900.