KUALA LUMPUR (Sept 11): BYD Malaysia has dropped plans to build a vehicle assembly plant in Tanjung Malim, Perak, but remains committed to starting local completely knocked-down (CKD) assembly operations, according to a Malay-language daily.
The Edge Weekly, in its March 30-April 5, 2026 edition, reported that BYD may reconsider its Tanjung Malim plans after terms set by the Ministry of Investment, Trade and Industry (Miti) called for up to 80% of cars produced in Tanjung Malim to be exported, while the remaining 20% of production would need to be priced above RM200,000 per unit. These conditions were intended to support the survival of the local automotive industry.
Managing director Jacob Ma told the media during a question-and-answer session at BYD’s media appreciation event on Thursday that discussions on local assembly cooperation are at an advanced stage. BYD is now looking for the best arrangement that fits Malaysia’s existing automotive ecosystem.
BYD has been speaking with local vendors since last year and wants to work with them rather than build a completely separate ecosystem.
BYD Sime Motors managing director Adeline Lew said the company has enough vehicle stock to meet current demand, although supplies of some models remain limited. BYD has no immediate plans to import additional vehicles from its Indonesian plant, as the facility will mainly serve the domestic Indonesian market.
Ma said BYD’s regional manufacturing plans should be viewed over the next 10 to 20 years, as the company aims to gradually expand its production capacity in the region.
BYD has sold more than 35,000 vehicles in Malaysia since entering the market, including over 7,500 units in the first half of this year.
BYD also confirmed that its flash-charging technology will be introduced in Malaysia, with further details to be announced.
BYD confirmed plans for a new CKD factory in Tanjung Malim in August 2025, as part of its strategy to establish local manufacturing operations. After news broke in March that BYD was relooking at the arrangement, Miti came out to defend its conditions, calling them non-discriminatory and saying they apply to all high-volume automotive projects.
In May, BYD was reportedly considering a contract assembly partnership with Sime Motors’ Inokom plant in Kulim, Kedah.
From July 1 this year, imported CBU EVs in Malaysia are required to have a minimum declared cost, insurance and freight value of RM200,000, as well as a minimum power output of 245 hp (180 kW).
These requirements were introduced after Malaysia’s special tax exemption for imported CBU EVs ended in December 2025.