BYD Malaysia Appoints Inokom as CKD Assembly Partner

BYD Malaysia has appointed Inokom Corporation as its contract assembly partner for CKD vehicles. The arrangement was formalized through a memorandum of understanding signed at BYD’s global headquarters in Shenzhen, China. Liu Xueliang, vice president of BYD and general manager of the BYD Asia Pacific Auto Sales Division, signed the MoU alongside Dato’ Jeffri Salim Davidson, group CEO of Sime. No details were provided on which models will be assembled locally or when production will begin.

Strategic rationale

BYD Malaysia chose Inokom after assessing domestic market conditions and local manufacturing capabilities. Managing director Jacob Ma stated that local assembly is an important part of the company’s long-term commitment to Malaysia. He added that BYD aims to bring its expertise in new energy vehicles and battery technologies closer to the Malaysian market.

Inokom’s readiness

Inokom Corporation Sdn Bhd is a Sime Motors subsidiary based in Kulim, Kedah. The company’s vehicle assembly operations, experienced workforce, and existing infrastructure provide a solid foundation for BYD’s local assembly plans. BYD Malaysia cited Inokom’s established facilities, workforce, and supply chain as providing a practical foundation for CKD operations.

Context of abandoned plant

The partnership comes after BYD abandoned plans to build its own assembly plant in Tanjung Malim, Perak. The Tanjung Malim plant was abandoned due to conditions set by the Ministry of Investment, Trade and Industry. Those conditions required up to 80% of vehicles produced at the proposed plant to be exported. The remaining 20% of vehicles were to be priced above RM200,000 each. BYD Malaysia confirmed it was scrapping its own Tanjung Malim plant in favour of an established local CKD partner.

Leadership statements

Both companies emphasized the partnership’s role in strengthening local automotive capabilities. Sime group chief executive officer Datuk Jeffri Salim Davidson said the partnership reflects the strength and expertise developed over the years in Malaysia’s automotive manufacturing sector. He stated the collaboration could build capabilities to contribute to the industry’s long-term growth. Jacob Ma said the partnership marks another step in BYD’s growth in Malaysia and contributes to the continued development of the local automotive industry. He noted BYD remains focused on strengthening its local presence and exploring opportunities to deepen investment through collaboration with local industry partners. Further details and timelines for the local CKD assembly programme will be disclosed in due course.