BYD Signs MOU With Malaysian Bus Maker for Local eBus Assembly

On Aug. 18, BYD signed a memorandum of understanding with Malaysian bus maker Bus Cap to pursue strategic cooperation in new energy commercial vehicles, including plans to explore a local electric bus assembly and manufacturing facility in Perak, Malaysia.

The initial focus will be on local assembly and manufacturing of electric buses, with cooperation also covering product localization, sales models, after-sales services and other areas. The partners plan to use Malaysia as a base to expand into the broader Southeast Asian new energy commercial vehicle market.

Compared with shipping fully built vehicles, local CKD assembly can shorten delivery times, cut logistics and operating costs, improve compliance with local regulations, and better fit local operating conditions.

The deal marks a shift in BYD’s Malaysian commercial vehicle business from fully built vehicle sales toward local manufacturing.

Bus Cap is a listed Malaysian bus maker headquartered in Ipoh, Perak. Its core subsidiary, Sin Hock Leong Coach Works, has been in the bus business since 1968, with established capabilities in body manufacturing and local delivery. Its products cover city buses, intercity coaches, tourist buses and commuter vehicles.

For BYD, Bus Cap provides local manufacturing capabilities, regulatory know-how, and sales and after-sales networks. BYD brings battery, electric powertrain and vehicle technologies to the partnership.

The deal also fits Malaysia’s push to electrify public transport. The country is promoting an energy transition in public transit, gradually expanding electric buses across urban transport networks.

BYD’s overseas commercial vehicle footprint now spans multiple markets across Europe, the Americas and Asia.

In Europe, BYD has teamed up with Spanish bus body maker Castrosua. BYD supplies electric bus chassis and core technologies, while Castrosua handles body manufacturing. Their Nelec electric bus series has secured an order for 23 12-meter electric buses from the city of Parma.

Latin America has also become a key market. In May 2026, BYD registered 59 electric buses in Brazil, taking 44.7% of the monthly market to rank first.

In Asia, BYD has entered emerging applications such as autonomous public buses in Japan through its electric bus chassis. In Japan’s fiscal 2025 autonomous bus demonstration projects, BYD accounted for 36.4% of deployments, ranking first among participating companies.

Southeast Asia is also a key growth region for BYD’s commercial vehicle business. Its electric buses have already entered markets including Singapore, Thailand and the Philippines.

The latest agreement, however, remains an MOU. It does not mean the plant has been formally approved or construction has begun.

The project still needs to clear feasibility studies, plant construction or conversion, government approvals and local supply-chain development before moving forward.