BYD Scraps Plans To Build CKD Assembly Plant In Malaysia

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BYD Malaysia has confirmed that its previously discussed manufacturing facility in Tanjung Malim, Perak, will not proceed

However, the Chinese EV giant said that it is still moving ahead with plans to assemble vehicles locally, according to FMT.

BYD Malaysia managing director Jacob Ma said the company is now in advanced discussions with an established local assembly partner, although BYD has yet to reveal the partner or when local production will begin.

Ma confirmed the change during the launch of the limited-issue BYD Atto 3 Performance in Malaysia yesterday, 10 September.

"To clear the air on this, the Tanjong Malim facility will not proceed. However, this decision does not mean that BYD has cancelled its plans for local assembly in Malaysia. Our commitment to local assembly remains," he said.

"Discussions are already at a very advanced stage, and we are finishing the necessary documentation, and we will make an official announcement once everything is in place."

The identity of the partner cannot be disclosed until the deal has been signed.

Ma also said the change should not be interpreted as BYD abandoning its investment plans in Malaysia.

"Our culture is to develop and explore one market for the long-term strategy. For the long-term strategy, the location might change, and investment might be different, but the commitment is the same," he was quoted as saying.

"For us to move from one place to the other is not because we were stopped by something; it's just because we haven't found the best solution."

BYD is looking for a different route into Malaysia's automotive industry

Ma said BYD had been speaking to local suppliers and other players in Malaysia's automotive ecosystem since last year.

"The conversation never stopped. Even last year, we already started communication with the local ecosystem," he said.

He said the company wanted to find a solution that would allow BYD to work more closely with existing Malaysian automotive players, rather than simply establishing its own facility.

BYD has not disclosed what percentage of its locally assembled vehicles would need to consist of locally sourced components.

Meanwhile, the New Straits Times reported that the company also has no immediate plans to import vehicles from Indonesia, unless a particular model is unavailable in Malaysia and there is sufficient demand for it.

Ma said BYD's manufacturing plans should be viewed over a much longer timeframe, spanning 10 to 20 years, as the company works towards building greater manufacturing capacity across the region.

Malaysian BYD owners won't have to wait for completely knocked-down (CKD) cars

While Ma would not give a timeline for when CKD production will begin, he said the change in manufacturing strategy would not result in a shortage of vehicles for Malaysian customers.

"I can't comment on when CKD will start, but I'd like to reinforce that we have sufficient stock until CKD starts," he said.

Ma said current vehicle stocks were sufficient, although supplies of some models remained limited, with BYD working with its distributors to meet customer demand.

BYD has sold more than 35,000 vehicles in Malaysia since the brand was introduced here, including more than 7,500 units during the first half of 2026.

The company's Tanjung Malim plans had already appeared to stall earlier this year, prompting questions over whether BYD would proceed with a dedicated Malaysian manufacturing facility

In May, it was reported that BYD was evaluating a potential contract assembly arrangement with Sime Motors' Inokom plant in Kulim, Kedah, as it reviewed its local manufacturing strategy.

BYD's local manufacturing plans also came under scrutiny following the government's decision that fully imported EVs must have a minimum import value of RM300,000 from July.

On 5 September, BYD vice-president Liu Xueliang said the company would continue exploring cooperation with local partners to support the development of Malaysia's new energy vehicle industry.

The latest announcement now makes one part of BYD's strategy clear: the Tanjung Malim facility will not happen in its previously discussed form.

What remains undecided is where BYD's Malaysian CKD operations will actually be based and which local company will assemble its vehicles.

For now, BYD says the commitment to local assembly remains, even if the original plant does not.