BYD to reveal Malaysia EV production plan

BYD will announce its electric vehicle development plan for Malaysia within a week. The company's vice-president and general manager for Asia Pacific auto sales, Liu Xueliang, made the statement to Malaysian media in Shenzhen.

Liu was asked whether the Chinese automaker would establish its own manufacturing operations or work with a local partner. "Wait another week and we will announce it," he said. He added that BYD would continue to explore with local partners how to support Malaysia's new energy vehicle industry.

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

For BYD, which sells models like the Atto 3 and Seal 6 for under RM200,000 in Malaysia, local assembly is now the only viable path forward.

Manufacturing options on the table

Two primary manufacturing routes are under consideration. In August 2025, BYD confirmed plans for its own completely knocked-down (CKD) plant in Tanjong Malim, Perak. However, progress seems to have stalled. As of last month, the Ministry of International Trade and Industry (MITI) stated no official decision had been made regarding that plant.

The alternative is contract assembly. Liu visited the Sime Motors Inokom plant in Kulim, Kedah, in May. That visit hinted at a potential partnership where Sime Motors would act as BYD's local contract-assembly partner. Such an arrangement aligns with MITI's reported preference for EV makers to collaborate with existing local partners instead of constructing new factories.

Just this week, the Sime Motors leadership team held talks at BYD's Shenzhen headquarters regarding strategic priorities and mutual interests.

Focus on East Malaysia

Beyond the manufacturing decision, 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. This statement has led to speculation about introducing models suited to regional preferences, such as pickup trucks, which are popular in Borneo. A locally assembled BYD Shark pickup could be a possibility.

All indications currently point toward BYD opting for contract assembly with Sime Motors at the Inokom facility. The official confirmation is expected within the next seven days.