Last month, BYD announced that it had nixed its plans to establish a completely knocked-down (CKD) facility in Tanjung Malim, Perak. At the time, the automaker disclosed that it will work with a local assembly partner to further its assembly plans in Malaysia. Now, the company has confirmed that the partner in question is none other than Sime Motors subsidiary Inokom Corporation Sdn Bhd, otherwise known as Inokom.

This collaboration was formalised through the signing of a Memorandum of Understanding (MoU) at BYD’s global headquarters in Shenzhen, China. Based in Kulim, Kedah, Inokom was chosen following an assessment of the local market and available manufacturing capabilities. The company’s vehicle assembly operations, experienced workforce, and existing infrastructure were described as a practical foundation for BYD to advance its local assembly plans.

Of course, those keeping up with the automaker may have already seen this coming. Back in May, reports of a possible contract assembly arrangement emerged. This came after the Ministry of Investment, Trade and Industry (MITI) updated its automotive policies, which would require the automaker to export up to 80% of vehicles assembled locally. Under the new regulations, BYD would also need to maintain a RM100,000 minimum price for units sold domestically. Apparently, the company did not agree to these terms, and thus chose to cancel its assembly plant, which was proposed back in 2025.

In any case, this turned out to be a temporary setback, as the brand remains intent on establishing local assembly operations on our shores. Speaking on the partnership, Managing Director of BYD Malaysia Jacob Ma asserted that local assembly is an important part of the company’s long-term commitment to Malaysia. Ma went on to highlight BYD’s plans to bring its expertise in new energy vehicles and battery technologies closer to the local market.

Meanwhile, Group Chief Executive Officer of Sime Dato’ Jeffri Salim Davidson focused on the partnership’s significance in strengthening the nation’s automotive ecosystem. He also noted that the collaboration creates opportunities to support local businesses and develop capabilities to help the industry’s long-term growth.

For now, details on the local assembly programme remain under wraps. In its announcement, BYD promised that further information will be revealed “in due course”.

(Source: BYD press release)

Updated 5:55 pm, Thu, 15 October 26