BYD cancels Tanjong Malim plant, opts for local CKD partner
BYD Malaysia has confirmed it will not build its own plant in Tanjong Malim, Perak. Instead, the automaker will pursue local assembly through an established Malaysian partner, with a deal in advanced stages.
BYD has cancelled its plans for a wholly-owned assembly plant in Tanjong Malim, Perak. The Chinese automaker will instead pursue complete knock-down (CKD) operations in Malaysia through a local contract manufacturing partner.
This confirmation came from BYD Malaysia managing director Jacob Ma during a media session for the Atto 3 Performance launch. "To clear the air on this, the Tanjong Malim facility will not proceed," Ma stated. He was quick to add that this did not signify an end to local assembly ambitions. "Our commitment to local assembly remains," he told reporters.
Shift to contract assembly
Ma revealed that the company is in advanced discussions with an established local assembly partner. He said the partner has the necessary capacity and capabilities to support BYD's full local assembly operations. The identity of the partner remains confidential until final agreements are signed.
"We are working with an established local assembly partner that has the capacity and the capabilities to meet BYD’s requirements," Ma explained. "Discussions are already at a very advanced stage and we are finishing the necessary documentation."
Strategic commitment to Malaysia
Despite the change in plans, BYD's leadership emphasized a continued long-term commitment to the Malaysian market. Jacob Ma framed the decision as an evolution of strategy rather than a retreat.
"Plans might evolve, locations might change, and strategies might be refined, but what remains constant is our commitment to this market," Ma said. He concluded his remarks with a firm declaration: "BYD is here to stay. We are here to grow with Malaysia."
The original plan for a BYD-owned plant in Tanjong Malim was confirmed in August 2025. Since then, updates had been scarce. As recently as last month, Malaysia's Ministry of International Trade and Industry (MITI) stated no official decision had been made on the proposed facility.
Partner speculation points to Sime Motors
Industry speculation strongly points to Sime Motors as the likely local partner. This follows a visit by BYD's Asia Pacific auto sales head, Liu Xueliang, to the Sime Motors Inokom plant in Kulim, Kedah, in May. The visit was widely interpreted as a strong hint towards a future partnership.
Such an arrangement aligns with MITI's reported preference for electric vehicle makers to collaborate with existing local players instead of constructing new, dedicated factories. Further reports last week indicated that a Sime Motors leadership team traveled to BYD's Shenzhen headquarters for talks on strategic priorities.
The final announcement of the partnership is pending the completion of contractual documentation.
