KUALA LUMPUR: China's electric vehicle maker BYD has finally decided on its Malaysian production plans, appointing Sime Darby Bhd's Inokom Corp Sdn Bhd as its local assembly partner.
This comes a month after BYD Malaysia shelved its planned facility in Tanjung Malim, Perak which was originally part of its local assembly plan revealed over two years ago.
The company said Inokom, which operates an assembly plant in Kulim, Kedah, will assemble its completely knocked-down (CKD) vehicles under a memorandum of understanding (MoU) signed at BYD's global headquarters in Shenzhen, China.
The appointment marks a shift towards leveraging existing automotive manufacturing infrastructure instead of developing a dedicated facility.
However, BYD has yet to disclose the investment amount, production capacity, models to be assembled or the timeline for local assembly.
The move also places BYD alongside established automotive manufacturers using Malaysia's existing assembly ecosystem to support their expansion plans.
By working with an existing contract assembler, the company could potentially reduce the time and capital required to begin production while gaining access to established logistics, supplier and workforce networks.
Local assembly could also help BYD respond more flexibly to market demand as Malaysia's EV sector continues to develop.
The government has introduced incentives and policy measures to encourage EV adoption, while consumers are showing growing interest in battery-powered vehicles as more brands expand their offerings.
BYD Malaysia managing director Jacob Ma said the partnership will allow the company to build on established manufacturing capabilities while bringing its expertise in new energy vehicles and battery technologies closer to Malaysian consumers.
"Local assembly is an important part of BYD's long-term commitment to Malaysia," he said in a statement today.
Ma added that the company will continue exploring opportunities to deepen its investment through collaboration with local industry partners.
The company's decision is expected to be closely watched by the wider automotive industry, particularly suppliers seeking opportunities to participate in the EV value chain.
Depending on the programme's scale, local assembly could create demand for components, logistics services, technical support and workforce training.
Inokom, a subsidiary of Sime Motors, brings existing vehicle assembly operations, an experienced workforce and an established local supply chain to the partnership.
Its plant in Kulim has previously assembled vehicles from several international brands, giving the facility experience in handling different production requirements and manufacturing standards.
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the collaboration would create opportunities to strengthen Malaysia's automotive ecosystem, support local businesses and develop capabilities for the industry's long-term growth.
The partnership also reflects the growing importance of cooperation between global EV manufacturers and local automotive groups.
As the industry shifts towards electrification, established assemblers can provide the infrastructure and operational expertise needed to support new entrants, while manufacturers such as BYD can contribute vehicle technology, battery know-how and global production experience.
BYD vice-president and Asia Pacific Auto Sales Division general manager Liu Xueliang and Sime Motors managing director of Southeast Asia Jeffrey Gan signed the MoU, with representatives from BYD Malaysia and Sime Motors witnessing the signing.
Key details remain subject to further discussion and approval.
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