BYD to produce EVs in Malaysia from 2026

BYD Malaysia today announced  plans to set up a factory to assemble its vehicles locally. The new plant is now under construction at the KLK Tech Park in Tg. Malim, Perak and production operations are set to begin during 2026.

BYD’s presence in Perak is expected to be a catalyst for Malaysia’s electric vehicle sector. The new plant will not only create employment opportunities but also support technology transfer, enhance expertise in EV manufacturing and encourage the growth of supporting industries. These spill-over effects will enable local companies to participate in the global EV supply chain, further advancing Malaysia’s position in the regional automotive landscape.

KLK Tech Park
In support of this vision, KLK TechPark, a 1,500-acre integrated industrial hub by KLK LAND provides the infrastructure and ecosystem needed to attract high-value investments from companies such as BYD, and to accelerate the expansion of Perak’s manufacturing base. KLK TechPark is envisioned as a hub for advanced manufacturing and green technology.

As the anchor tenant of the development’s first phase, BYD will take up 150 acres, with subsequent phases designed to attract vendors and businesses that can contribute to a complete and competitive automotive ecosystem.

Automotive Hi-Tech Valley
Tg. Malim is also where the Automotive Hi-Tech Valley is located. Covering an area of 4,000 acres, the AHTV aims to establish an ecosystem to house high technology manufacturing and supply chains essential for advancing Malaysia’s New Energy Vehicle as well as next-generation vehicle industries. PROTON already has a factory in the AHTV and has also built a dedicated factory to produce EV models which will begin operations in September 2025.

2 more years of duty-exemption
The establishment of local production  will allow BYD Malaysia to continue enjoying the duty-exemption on fully electric vehicles for another two years after it expires for CBU vehicles at the end of 2025. This will enable BYD Sime Motors, the official distributor, to offer BYD models at attractive and competitive prices.

The BYD range in Malaysia currently consists of 6 EVs so it will be interesting to see which are chosen for local assembly. Our guess is that they would include the ATTO 3, which is one of the bestselling EVs in the Malaysian market. The recently launched ATTO 2 would also be a good candidate as it is the affordably priced entry-level model and would have high demand.

Click here to know more about BYD EVs in Malaysia

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