With the national budget due to be tabled on 9 October, attention across the industry is turning to how Budget 2027 EV incentives in Malaysia will be shaped, and to a quieter theme that could matter just as much to everyday drivers: where the parts in our cars come from.

On 23 September 2026, BusinessToday reported CIMB Securities' view that the upcoming budget could clarify the government's electric vehicle incentive framework, as well as a proposed levy on EV sales to fund public charging infrastructure. The same report noted that tax exemptions for locally assembled (CKD) EVs remain in place until 31 December 2027, while incentives for imported EVs were not extended. CIMB expects future incentives to become "more targeted, with greater emphasis on technology transfer, local component sourcing and deeper participation by Malaysian companies."

That last point deserves a closer look, because the conversation about incentives is ultimately a conversation about supply chains, and supply chains decide how easily and affordably cars can be kept on the road.

What Was Actually Reported?

It's worth separating confirmed facts from expectations, since nothing is final until the budget is tabled. According to the BusinessToday report:

• Budget date: CIMB pointed to the 9 October budget as the moment incentives could be clarified
• CKD EV exemptions: tax exemptions for locally assembled EVs continue until 31 December 2027
• Imported EVs: incentives for imported EVs were not extended
• Charging levy: Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the government was "studying a mechanism to collect contributions from EV sales for a dedicated charging infrastructure fund," with implementation details still undecided
• Market context: Chinese brands grew sales 28% year-on-year in the first eight months of 2026, lifting market share to 7.7%, while Japanese brands' share fell 4.2 percentage points to 21.7%

The report also cited an industry forecast of 800,000 total vehicle units for 2026. Whatever Budget 2027 ultimately contains, the direction of travel is clear: a larger, more diverse vehicle population, with more electrified models and more brands competing for buyers.

Why Does Local Component Sourcing Matter to Drivers?

For most car owners, "local component sourcing" sounds like an issue for factories and policymakers. In practice, it shapes the ownership experience in several ways:

• Parts availability — a deeper local supply base generally means shorter waits when something needs replacing
• Price stability — less exposure to currency swings and shipping disruptions can help keep repair costs predictable
• Technical support — local suppliers with trained teams can respond faster to workshop questions and fitment issues
• Long-term serviceability — a car is only as practical to own as the ecosystem that supports it for ten years or more

Malaysia's vehicle parc is also becoming more varied. Alongside the national brands and long-established Japanese and Korean models, owners now drive a growing mix of Chinese, European, hybrid and fully electric vehicles. Every one of those cars will eventually need replacement brakes, suspension joints, wheel bearings and steering components, regardless of what powers it.

EVs Still Need Chassis Parts

One common misconception is that electrified cars barely need maintenance. It's true that EVs do away with oil changes and many engine-related service items. But the chassis is still very much there, and in some respects it works harder.

• Heavier kerb weight from battery packs places greater loads on control arms, ball joints, bushings and wheel hub bearings
• Instant torque puts extra stress on driveshafts, CV joints and tyres
• Regenerative braking reduces pad wear, but brake discs that see less use can be prone to corrosion in humid conditions if not checked
• Quiet cabins make suspension knocks and bearing hum far more noticeable to occupants

In other words, as EV adoption grows, so does demand for well-engineered steering, suspension and brake components that can handle higher loads over a long service life.

What Should Workshops and Owners Watch For?

Until the budget is tabled, the sensible approach is to follow the announcements closely without assuming specific outcomes. For owners and workshops, a few practical points hold regardless of policy detail:

• Check whether your vehicle, especially a newer or less common model, has reliable local parts support before you need it
• Keep to inspection intervals for chassis components; SAIKO's workshop guidance suggests reviewing suspension kits every 50,000 km or two years
• For EVs and heavier SUVs, pay particular attention to wheel hub bearings, control arm bushings and ball joints
• Choose replacement parts that are a direct OE-fit, with no modification needed, from a supplier with local warranty support

Budget 2027 may bring welcome clarity on EV incentives and charging, and the emphasis on local component sourcing points toward a more resilient automotive ecosystem. For drivers, the measure of success will be simple: can they keep their cars safe, comfortable and affordable to run, year after year?

SAIKO has supplied quality-controlled automotive replacement parts since 2007, with coverage for more than 400 vehicle models across Japanese, Korean, Malaysian and other passenger vehicles, supported by a nationwide dealer network and local warranty support. As Malaysia's vehicle mix evolves, our focus stays the same: parts that fit precisely and last, backed by people who understand local roads. It's work our growing team takes seriously, because every part we supply ends up on a real car carrying real families.

Explore SAIKO's steering, suspension and brake range at saiko.com.my