Report: BYD may rethink Malaysia plans amid Miti’s export, pricing conditions

KUALA LUMPUR, March 30 — Chinese electric vehicle (EV) maker BYD may reconsider its plans to set up a completely knocked down (CKD) assembly facility in Tanjong Malim after failing to agree with conditions set by the Ministry of Investment, Trade and Industry (Miti), The Edge reported.

According to the business daily citing Miti minister Datuk Seri Johani Abdul Ghani, one of the key sticking points is a requirement for up to 80 per cent of vehicles assembled locally to be exported, with only 20 per cent allocated for the domestic market.

Johani was quoted as saying that vehicles sold locally must also be priced above RM200,000, a condition that BYD did not accept.

“These figures — 80 per cent export and 20 per cent for the local market but priced not lower than RM200,000 — were the terms they couldn’t agree on. We have to protect our own auto industry,” he was quoted as saying.

The report said the conditions were introduced to safeguard Malaysia’s domestic automotive ecosystem, which supports around 700,000 jobs.

It added that national carmakers Proton and Perodua currently maintain about 50 per cent local content in their vehicles and play a significant role in the country’s automotive supply chain.

Johani was also quoted as noting that Proton sells about 150,000 units annually, while Perodua records sales of about 350,000 units.

“You must remember that both Proton and Perodua have 50 per cent local content in their cars and Proton sells about 150,000 cars a year while Perodua sells 350,000..which is a lot and these two companies built a lot of the existing ecosystem for the auto industry in Malaysia,” he was quoted as saying.

BYD had previously planned to establish a CKD assembly plant in Tanjong Malim, Perak, with operations targeted to begin in the second half of 2026 at the KLK Tech Park.

The report also noted that BYD has emerged as a leading EV brand in Malaysia, recording 14,407 units sold in 2025 (excluding premium sub-brand Denza), marking a 68 per cent increase from the previous year.