BYD Cancels Plan to Self-Build Factory in Malaysia, Switches to Partnering with Local Partners

Gasgoo News According to foreign media reports, Chinese automotive giant BYD has postponed plans to build its own automotive assembly plant in Malaysia, turning to launch "in-depth negotiations" with local partners to achieve its production goals locally. BYD Malaysia Managing Director Jacob Ma revealed this decision at a press briefing held recently.

BYD previously announced in August 2025 plans to build an automotive assembly plant in Tanjung Malim, Perak, Malaysia. "As a clarification, the Tanjung Malim plant will not proceed further," Ma stated.

He added that BYD is currently collaborating with a mature local enterprise, "the partner possesses the capacity and capability required to meet BYD's requirements and support a complete local assembly business." Current discussions between the two parties "have entered a very advanced stage," and relevant documents are also being finalized.

"Once everything is ready, we will formally announce it to the public."

Image Source: BYD

Malaysian financial media "The Edge" reported in March this year that uncertainty arose regarding the progress of the Tanjung Malim plant project after BYD failed to reach an agreement with the Malaysian Ministry of Investment, Trade and Industry on relevant conditions.

It was reported that one of the disputes involved the requirement for the export proportion of locally assembled vehicles, meaning up to 80% of locally assembled vehicles might need to be exported.

Regarding why the self-built factory plan was postponed, Ma did not respond directly, but stated that BYD's corporate culture is "focused on long-term exploration".

In May this year, it was reported that BYD is evaluating the possibility of contract assembly cooperation with local partner Sime Motors. This cooperation may utilize factories of Sime's subsidiary located in Kulim, Kedah for production. Sime Motors is BYD's official dealer in Malaysia.

Effective July 1 this year, Malaysia began requiring the declared Minimum Cost, Insurance, and Freight (CIF) for imported fully built electric vehicles to reach 200,000 Ringgit (approx. $49,000), and requiring a minimum power output of 245 horsepower (180 kW). This new requirement was implemented after the special tax incentives for imported fully built electric vehicles in Malaysia expired at the end of 2025.

Some of BYD's main electric vehicles currently sold in Malaysia are priced below 200,000 Ringgit, therefore, the importance of local assembly has increased further.

Ma emphasized that BYD "will continue to deepen its presence in Malaysia". "The specific factory location and cooperation method may change, but our goal has not changed," Ma stated. "We still view Malaysia as an important market and an important part of BYD's future growth strategy."

Ma also said that as BYD's business continues to develop, related changes will continue to occur and company strategy might also be further "optimized". "We will continue to invest and continue to innovate."

Currently, BYD is further expanding its market layout in Malaysia. Since entering the Malaysian market in 2022, BYD has cumulatively sold over 35,000 electric vehicles. Last year, BYD sold 14,407 electric vehicles locally, becoming the best-selling EV brand in Malaysia.

Adeline Lew, Managing Director of Sime Motors Automotive, stated that in the first half of this year, BYD sold over 7,000 electric vehicles in Malaysia.

In July this year, BYD's high-end brand Denza launched the Z9GT in Kuala Lumpur, priced at 358,800 Ringgit. Analysts believe this model will bring significant competitive pressure to the high-end EV market in Malaysia.

Ma revealed that the first batch of Z9GT has sold out, the company is currently waiting for the second batch of vehicles to arrive in Malaysia, but did not reveal more details.