BYD to reveal Malaysia EV production plan

BYD will announce its electric vehicle development plan for Malaysia within a week. The decision, revealed by BYD vice-president and Asia Pacific auto sales general manager Liu Xueliang, will clarify the company's manufacturing strategy in the country.

Liu made the statement to Malaysian media in Shenzhen. When asked if BYD would partner locally or establish its own operations, he replied, "Wait another week and we will announce it." He added that the company would continue exploring with local partners how to support Malaysia's new energy vehicle industry.

The announcement timing is critical. Malaysia's tax exemption for imported completely built-up (CBU) electric vehicles ended in December 2025. Since July 1, 2026, imported CBU EVs must have a minimum cost, insurance, and freight value of RM200,000 and produce at least 180 kW (245 PS). These rules effectively block affordable, fully-imported EVs from the market.

For BYD, whose Malaysian lineup includes sub-RM200,000 models like the Atto 3 and Seal 6, local assembly is now essential. The company had confirmed plans for its own completely knocked-down plant in Tanjong Malim, Perak, in August 2025. However, progress seems stalled. As of last month, the Ministry of International Trade and Industry stated no official decision had been made on the plant.

Contract assembly gains momentum

Meanwhile, the contract-assembly pathway has advanced. Liu visited the Sime Motors Inokom plant in Kulim, Kedah, in May. This hinted at Sime Motors becoming BYD's local contract-assembly partner. Such an arrangement aligns with MITI's preference for EV makers to collaborate with local partners instead of constructing new factories.

Just this week, the Sime Motors leadership team held talks at BYD's Shenzhen headquarters. Discussions focused on strategic priorities and areas of mutual interest.

Focus on East Malaysia growth

Beyond manufacturing plans, Liu identified East Malaysia as a key growth area for the brand. "We believe East Malaysia still has significant room for development, but first, we hope to have suitable models," he said. Given the popularity of pickup trucks in Borneo, this raises the possibility of a locally assembled BYD Shark model for that market.

The core question remains whether BYD will proceed with its own plant in Tanjong Malim or opt for contract assembly at Inokom with Sime Motors. Current indicators suggest the latter. The official answer is expected within the week.