BYD’s alleged impasse with the Ministry of Investment, Trade, and Industry (MITI) has been the talk of the town in recent weeks, but it seems there could soon be an update to the Chinese marque’s local assembly plans in Malaysia.
Sime Motors, the official importer and distributor of BYD passenger vehicles in Malaysia, today published a new post on its Facebook page, reiterating its commitment in their partnership with BYD to “together… [bring] the best products to our customers in Malaysia”. Notably, the post also includes a photo highlighting the BYD leadership team’s recent visit to the Inokom assembly plant in Kulim, Kedah.
Not much else was revealed in the post, and the company declined to comment when contacted by AutoBuzz.my. It should be noted, however, that this is the first public association between BYD and the Inokom assembly facility – which is majority-owned by Sime Motors – and could hint at a change in direction for the Chinese marque’s CKD plans in Malaysia.
BYD has previously revealed plans for a new 600,000 sqft local assembly plant in Tanjung Malim, with mass production planned to commence in 2026. However, since its announcement in August 2025, construction works at the site has reportedly stalled.
Later, it was revealed that MITI has imposed new conditions for the approval of a manufacturing licence, applicable to “all new automotive investments in Malaysia” beginning in September 2025, among which, requires the construction of a body shop and paint shop, alongside expanded export targets for cars produced at new plants.
This is also further compounded by the new EV import requirements, which mandates all CBU EVs starting July 2026 must meet a minimum CIF (cost, insurance, freight, i.e. ex-factory) value of above RM200,000, alongside a minimum power output of 180 kW (245 hp), thus essentially barring all BYD models currently on sale here in Malaysia from importation.
Carmakers can sidestep these requirements by engaging an existing contract assembler in the country for CKD works, a strategy already employed by MG Motors, XPeng, and GWM with EP Manufacturing Berhad (EPMB). Now, it appears BYD could be in talks for a similar arrangement with Inokom, utilising the latter’s existing production facility in Kulim rather than going at it at their own in Tanjung Malim.
Inokom currently serves as the contract manufacturer for BMW, MINI, Mazda, Kia, and Porsche, the latter being the first assembly facility outside of Europe for the luxury carmaker, 100% staffed by Malaysians.
BYD has not made any new announcements regarding their CKD plans in Malaysia, but Vice President and General Manager of Asia Pacific Auto Sales Division, Liu Xueliang, has reiterated the brand’s commitment to the local market at the recent launch of the BYD Mansion Macalister 3S centre in Penang, the brand’s 41st branch in the region.
“As a responsible technology company, we will continue to bring our best technologies and products to Malaysia. Together with the relevant authorities of the Malaysian government and our distributor and dealer partners, we will find the most suitable NEV development solutions for the Malaysian market,” Liu said in his speech.
“With respect to the policies from the Malaysian Government, we hope to use our efforts, our wisdom and our spirit, with the cooperation of all the Malaysian consumers and friends, to continue delivering the best technologies and products to Malaysia,” he added.
