BYD Malaysia has officially addressed recent speculation surrounding its future in the country, with a clear message that the global leader in the electrified vehicle segment is here to stay and grow its business. This includes local assembly of selected models in the near future.
Factory project cancelled
Jacob Ma, Managing Director of BYD Malaysia, made the position clear when speaking to the media at an event last night. Getting straight to the point, Mr. Ma said: “There has been some speculation following the news regarding the previously announced Tanjung Malim facility [to assemble BYD vehicles]. To clear the air, the Tanjung Malim facility will not proceed. However, this decision does not mean that BYD has cancelled our plans for local assembly in Malaysia. Our commitment to local assembly remains.”
He confirmed that BYD is working with an established local partner which has the capacity and capability to provide and support contract assembly operations.
While not disclosing the partner, he said that discussions are at an advanced stage, with final documentation being completed. On when the first locally-assembled vehicles will roll out, Mr. Ma said that announcement will be made later.
Inokom an obvious choice
The obvious local partner would be Sime Motors, which has Inokom, an assembly plant in Kedah. The plant, which has been in operation since the late 1990s, assembles for brands such as BMW, MINI, Chery and Mazda and, in recent years, has been assembling fully electric vehicles.
Inokom therefore has the facilities and a fully Malaysian workforce with the experience of working with EVs which involve high-voltage electrical systems. Distribution of BYD vehicles, which are all fully electric, in Malaysia is also handled through its subsidiary, BYD Sime Motors.
Contract assembly advantages
Contract assembly means that BYD doesn’t have to meet the export conditions set by MITI if it built its own factory, which requires a manufacturing licence. With local assembly, it is also not affected by the RM200,000 (CIF) minimum value threshold for EVs which were announced by MITI earlier, and can offer its models at competitive prices, potentially below RM100,000.
The government also provides incentives to companies that invest and assemble locally, offsetting production costs which allow for lower retail prices.
Buying parts from Malaysian suppliers
However, there is an expectation that companies assembling locally will source parts from Malaysian suppliers to strengthen the domestic automotive ecosystem.
This presents a particular challenge for BYD, which is highly vertically integrated and derives a major cost advantage from producing a large proportion of components within its own group.
Nevertheless, the automaker will definitely source some parts locally. In fact, there have already been discussions with some local companies since last year, Mr. Ma revealed.
Mr. Ma said the company will cooperate with the government and play its part in developing the local ecosystem.He acknowledged that business plans evolve as operations mature, but stressed that the underlying commitment remains constant.
BYD will continue to invest, introduce new products and technology, and work with partners, dealers, employees and the wider automotive ecosystem in support of Malaysia’s shift towards electrified mobility.
Unchanged commitment
“BYD is here to stay in Malaysia,” Mr. Ma stressed. “Our commitment to this market has not changed. In fact, if you look at what we have been doing, our actions speak very clearly about our long-term commitment to Malaysia.”
He pointed to continued investment in people, the dealer network, product offerings and customer experience over recent years, including the introduction of new models and variants, as evidence of that commitment. Network expansion has continued and several more outlets will open before the end of the year.
To support this operational growth and further deepen its roots in Malaysia, the company recently relocated its corporate team into a larger dedicated office space. These moves demonstrate that BYD views Malaysia not as a temporary market to just sell its cars, but as a permanent base requiring comprehensive investment across talent, facilities, and customer care.
“We continue to see Malaysia as an important market and a strategic part of BYD’s growth in the region,” he said. “When we look at everything that is happening across BYD Malaysia today, from our continuous product launches and the expansion of our retail network, to our investment in our people and operations and our commitment to local assembly, I think the direction is very clear. We are here to grow, with Malaysia.”
Enough stocks till assembly starts
On vehicle availability between now and the arrival of locally assembled units in showrooms, Adeline Lew, Managing Director of BYD Sime Motors, said there is sufficient stock on hand, so prices are not expected to change significantly in the near-term.
She also announced the availability of the new BYD ATTO3 Performance AWD (shown above) which is priced at RM149,800 (with a RM10,000 launch package). Only 69 limited-edition units will be available in Malaysia, the number chosen to commemorate Malaysia’s 69th Merdeka this year.
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