- BYD shelved its planned Tanjung Malim assembly plant and pivoted to a local contract-manufacturing partnership after Malaysian authorities tightened localization and export requirements.
- BYD registered 7,472 vehicles Jan–Aug and sold over 35,000 since 2022, with 14,407 NEV deliveries in 2025, underscoring strong local demand.
- The move targets rivals in Malaysia’s NEV segment but raises execution risks around partner integration, meeting export quotas, and potential margins from contract manufacturing.
BYD is revising its plan to build a dedicated vehicle assembly plant in Malaysia.
BYD Malaysia Managing Director Jacob Ma recently confirmed at a media briefing that the company will no longer proceed with its previously planned assembly plant in Tanjung Malim, Perak, according to NIKKEI Asia.
BYD first announced plans to build its own assembly plant in Malaysia in August 2025. The facility was originally planned for Tanjung Malim, Perak, with production scheduled to start in the second half of 2026. The project was seen as a key step in expanding BYD’s manufacturing footprint in Southeast Asia.
However, as the project moved forward, BYD and the Malaysian government reportedly had different views on investment requirements.
Local media reported that Malaysia’s Ministry of Investment, Trade and Industry had introduced stricter localization and export requirements for new automotive investments, including a requirement for vehicles produced at new plants to be exported in larger volumes.
The requirement would increase operating pressure for BYD if it built a standalone factory.
For BYD, a new plant with significant export obligations would require the company to establish a broader supply chain, logistics network and overseas sales system. That could also extend the investment payback period.
However, BYD has not abandoned plans for local production in Malaysia.
The company is reportedly evaluating a partnership with Inokom, a contract manufacturing subsidiary under Sime Motors. Sime Motors is also BYD’s official distributor in Malaysia.
Jacob Ma said the two sides have entered the documentation stage, with BYD set to announce the partnership plan after finalizing relevant arrangements.
If the deal goes ahead, BYD will still achieve local assembly in Malaysia, but the production model will shift from a self-owned factory to contract manufacturing.
Malaysia remains an important market in BYD’s Southeast Asian expansion strategy.
Data from Malaysia’s Road Transport Department (JPJ) showed that BYD registered 7,472 vehicles in the country from January to August this year, ranking ninth among all automotive brands and making it the best-selling Chinese NEV brand in Malaysia.
Since entering the Malaysian market in 2022, BYD has sold more than 35K vehicles locally. In 2025, BYD delivered 14,407 NEVs in Malaysia, becoming the country’s top-selling new energy vehicle brand.
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